Macroeconomic outlook report: Poland

During the third quarter of the year, the Polish economy grew at a year-over-year rate of 5.10%, remaining unchanged compared to the previous quarter. For its part, the growth rate of domestic demand rose to 6.20%. As for the labor market, the unemployment rate rose to 3.80%, and the year-over-year growth rate of employment slowed with respect to the second quarter of 2018, reaching 2.70%. The zloty depreciated against the euro, recording an average exchange rate of 4.31 PLN/€. Finally, inflation rose to 1.97%.

Macroeconomic overview

• During the third quarter of 2018, Poland's GDP remained unchanged in its year-over-year rate, standing at 5.10%.
• This performance occurred despite the acceleration of domestic demand, which increased its year-over-year variation by 1.80 p.p. with respect to the second quarter of the year, to 6.20%, as it was offset by external demand, which slowed down, hampered by the fall in exports by 2.40 p.p. and by the rise in imports by 0.52 p.p. with respect to the previous quarter.
• As for the labor market, the unemployment rate rose by 0.20 p.p. to 3.80%, and the year-over-year growth rate of employment decreased to 2.70%, decelerating by 0.20 p.p. when compared to the second quarter of 2018.
• The zloty depreciated against the euro by 0.05 zlotys per euro compared to the previous quarter, registering an average exchange rate of 4.31 PNL/€.
• The inflation stood at 1.97% in the third quarter of 2018, which was 0.20 p.p. above the rate registered in the previous quarter. This acceleration was mainly caused by higher growth in energy and food prices.

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