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Macroeconomic outlook report: Poland

First quarter of 2018

During the first quarter of the year, the Polish economy grew at a year-over-year rate of 5.20%, 0.30 p.p. higher than in the previous quarter. The growth rate of domestic demand rose to 6.80%. As for the labor market, the unemployment rate fell to 4.20%, and the year-over-year growth rate of employment slowed with respect to the fourth quarter of 2017, reaching 2.90%. The zloty appreciated against the euro, recording an exchange rate of 4.18 PLN/€. Finally, inflation fell to 1.53%.

Macroeconomic overview

  • During the first quarter of 2018, Poland's GDP accelerated by 0.30 p.p. to a year-over-year rate of 5.20%.
  • This growth in the economy was driven by domestic demand, which increased its y/y growth rate by 1.70 p.p. to 6.80%, mainly driven by higher growth in gross capital formation.
  • As for the labor market, the unemployment rate went down by 0.30 p.p. to 4.20%, and the year-over-year growth rate of employment decreased to 2.90%, decelerating by 0.40 p.p. when compared to the fourth quarter of 2017.
  • The zloty appreciated against the euro by 0.05 zlotys per euro compared to the previous quarter, registering an exchange rate of 4.18 PNL/€, a 1.22% appreciation.
  • The inflation stood at 1.53% in the first quarter of 2018, which was 0.70 p.p. below the rate registered in the previous quarter. This slowdown was mainly caused by lower growth in food, non-alcoholic beverages and transport prices.

For more information, click here to access the executive document in pdf.

© GMS Management Solutions, S.L., 2018. All rights reserved. The information contained on this publication is of a general nature and does not constitute a professional opinion or an advisory service. The data used in this publication come from public sources. GMS Management Solutions, SL assumes no liability for the veracity or accuracy of such data.