JP Morgan downgrades Poland’s GDP growth forcast

The American investment bank JP Morgan predicts that Polish economy will grow at 3,8 percent of GDP this year and 3 percent next year.

Previous predictions stood at 4,0 and 3,4 percent respectively.

The influential bank has predicted lower GDP growth for the whole Central Europe region, following more pessimistic forecasts for the world economy as a whole.

In its weekly commentary, Emerging Markets, JP Morgan also changed its forecast on inflation as well as the level of interest rates.

The Consumer Price Index (CPI) will be at 4,0 percent this year.

JP Morgan also estimates that despite weak economic result Poland’s government will implement a policy of belt tightening forced on it by growing public debt, currently at 55 percent of the country’s GDP.

JP Morgan also expects the National Bank of Poland NBP to lower interest rates as a result of fiscal tightening. (di)