Macroeconomic outlook report: Poland

During the fourth quarter of the year, the Polish economy recorded a year-on-year GDP growth rate of 7.26%, an acceleration compared to the previous quarter. As for the labor market, the unemployment rate improved compared to the third quarter, falling to 2.90%. The Zloty depreciated against the euro, with the exchange rate standing at PLN 4.62/€. Inflation continued to accelerate for the third consecutive quarter up to a year-on-year growth rate of 7.73%.

Macroeconomic overview

• During the fourth quarter of 2021, the year-on-year rate of change of Polish GDP increased by 1.92 p.p. compared to 3Q21, to stand at a rate of 7.26%.
• This increase occurred as a result of the increase in private consumption and investment. However, growth was limited towards the end of the year due to the decreasing confidence of the population after the increase in infections of the Omicron variant.
• The year-on-year rate of change in domestic demand accelerated by 2.55 p.p. compared to the previous quarter, reaching a rate of 11.19% in 4Q21.
• As for the labor market, the unemployment rate stood at 2.90% in the fourth quarter of 2021, which represented a decrease of 0.20 p.p. compared to 4Q20.
• During 4Q21, the Polish zloty depreciated against the euro, with the average exchange rate of PLN 4.62/€, 0.05 PLN/€ above that recorded in 3Q21.
• During this quarter, inflation accelerated by 2.26 p.p. to a year-on-year growth rate of 7.73% in the fourth quarter of the year.

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