According to the International Monetary Fund’s latest forecast, the average inflation rate in Poland next year will reach 3.5% – the highest in all of the European Union.
The IMF’s biannual World Economic Outlook report predicts that prices in Poland will increase faster than in Hungary (3.4%) and Romania (3.3%), the previous leaders. This is a big change from April, when the IMF forecast Poland’s 2020 figure at just 1.9%. It is also well above the Polish central bank’s inflation target of 2.5%.
The IMF’s report also forecasts falling economic growth for Poland: of 3.1% of GDP in 2020, down from an estimated 4.0% this year, and 5.1% in 2018. However, amid a wider global and regional slowdown, Poland’s figure remains “solid”, notes the IMF.
It predicts that Poland’s growth will be well above the European average of 1.8% in 2020, and that it will have the EU’s fifth fastest-growing economy, trailing only Malta (4.3%), Ireland (3.5%), Romania (3.5%) and Hungary (3.3%).