EBRD downgrades Poland's growth forecast to 3.4 pct in 2025
The European Bank for Reconstruction and Development (EBRD) has lowered its forecast for Poland's economic growth this year to 3.4 percent, according to the bank's latest report.
EBRD previously expected the Polish economy to grow at a 3.8 percent pace in 2025.
In 2026, the bank forecasts Poland's economic growth at 3.2 percent.
EBRD expects that public sector investments co-financed by the Recovery and Resilience Facility RRF [EU instrument designed to mitigate the economic and social impact of COVID-19] will accelerate further in the second half of 2025 as transfers increase, the report published on February 27 showed.
By the end of last year, Poland had received approximately 35 percent of its total RRF allocation (EUR 59.8 billion), with additional two tranches to come in April 2025 and the last four by end-2026, EBRD said.
As export market conditions improve, private sector investment by large producers should rebound, it added.
Potential increases in US import tariffs on goods from the EU are a source of risk, primarily through negative spillover effects from weaker economic activity in Germany, the EBRD also wrote. (PAP)
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