Macroeconomic outlook report: Poland

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.