Poland Outlook: Growth momentum continues while inflation jumps

The Polish economy continues its robust recovery, achieving a 3.2% growth rate in the second quarter. This growth was primarily driven by private and public consumption, with investments also exceeding expectations. Despite the pro-inflationary nature of this growth structure, inflation surged due to the deregulation of energy prices for households. Consumer prices rose above 4% in July, with an anticipated start of the return to the target only by mid-2025. The budget draft for 2025, which projects a deficit of 5.5% indicates that the pace of government consumption will not decelerate in the near future.