Meanwhile, inflation is projected to stand at 11.9 percent this year, followed by 5.2 percent in 2024 and 3.6 percent in 2025, the National Bank of Poland (NBP) said in its latest Inflation Report, which was released on Monday.
'Strong rise in commodity prices'
According to the report, "the annual growth in economic activity remained low worldwide, especially in the advanced economies, including the euro area" in the first quarter of 2023.
Global economic conditions were negatively affected by an earlier "strong rise in commodity prices," a "tightening of financing conditions in most economies" and "high uncertainty," the report said.
"Against this background, the growth in global trade volume remained low," the Polish central bank said.
"At the same time, economic growth was supported by the easing of tensions in global supply chains, as well as favourable labour market conditions in a majority of economies," it added.
Impact of Russia's invasion of Ukraine
The report also said that the prices of many commodities "remained relatively high," amid limited supply, "primarily due to the consequences of the Russian military aggression against Ukraine."
In its March projection, the bank had expected the Polish economy to grow 0.9 percent this year and 2.1 percent in 2024.
The Polish economy expanded by 5.1 percent in 2022, according to a revised estimate by the country’s statistics office.
Poland’s central bank chief, Adam Glapiński, last week renewed his prediction that the Polish economy would avoid a recession this year and that inflation would drop to the single digits by the end of 2023.
The central bank’s rate-setting Monetary Policy Council last Thursday left key interest rates unchanged, keeping the reference rate at 6.75 percent.
The panel earlier delivered a string of rate hikes in an effort to contain surging consumer prices.
Inflation in Poland stood at 11.5 percent last month, according to a flash estimate by the state-run Statistics Poland (GUS) agency.
(gs)
Source: PAP/PAP, nbp.pl