Poland’s retail sales are slowing down, according to BNP Paribas, having risen just 2.1 percent year-on-year in July, and 4.7 percent month-on-month, matching market expectations. “This growth shows that prices continue to fall. Those recent figures show that Poland’s economy is slowing down, which can also be seen in the recent performance of Poland’s production and construction sectors,” BNP Paribas wrote in a report.
The bank predicts that Poland’s GDP growth will not reach 3 percent year-on-year in the third quarter, while it managed 3.2 percent in the second quarter and 3.4 percent in Q1 2014. Analysts expect continued inflation pressure and fallout from the sanctions on Russia to push Poland’s Monetary Council into cutting interest rates by 0.5 percent this fall.
