Poland’s economy will continue suffer from deflation in the first half of the year, Finance Minister Mateusz Szczurek said this week. He admitted that earlier estimates were overly optimistic, adding that deflation will negatively impact Poland’s budget. Inflation is expected to reach just 1.2 percent, according to Poland’s 2015 budget plan. Jerzy Hausner, a member of the Polish monetary council, said the national bank should push interest rates up to combat the decreasing inflation rate, as deflation doesn’t reflect the actual performance of the country’s labor or investment markets.
He adds, however, that Poland’s GDP growth will slow below 3 percent in the third quarter of 2016, driven down by lower consumption.
