The Polish economy grew faster than expected last year, at 5.7%, the highest level since 2007, according to preliminary data, as it recovered from the pandemic.
The economies of Central Europe seek to capitalize on the recovery they experienced in 2021, driven by consumer demand, but face problems such as those affecting the supply chain and affecting industrial production in the second half of last year.
With inflation in the region high for many years, central banks such as Poland have also turned to interest rate hikes.
Poland’s data, the first so far from the region, showed that domestic demand was strong in 2021, strengthening the arguments for raising interest rates.
“We know that the economy closed last year at a very high rate,” said a chief economist at ING Bank Slaski.
“We have an explosion of consumption and that, from the point of view of monetary policy, combined with high inflation, is putting pressure on the monetary policy council to further tighten monetary policy.
The figures for 2021 were higher than estimated for growth of 5.5% and were the highest since 2007, when GDP had grown by 6.7%. The economy shrank by 2.5% in 2020.
Source: Capital
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