Republic of Poland: 2025 Article IV Consultation-Press Release; and Staff Report
Republic of Poland: 2025 Article IV Consultation-Press Release; and Staff Report
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Volume/Issue:
Volume 2026
Issue 025
Publication date: February 2026
ISBN: 9798229036023
$20.00
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Topics covered in this book
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Inflation , Economics- Macroeconomics , Money and Monetary Policy , Public Finance , fund relation , exchange arrangement , fund of restriction , currency of Poland , General resource , Inflation , Credit , Government debt management , Europe , Global , Central and Eastern Europe , Eastern Europe
Summary
For Poland, Russia’s war in Ukraine represented a major downward shock to output and upward shock to inflation. However, the strong real wage growth and fiscal stimulus of recent years have driven a nearly full closing of the output gap. In addition, inflation has returned to target due to both appropriately tight monetary policy and a subsiding of external supply shocks. The main vulnerability that emerged from recent years is an increase in the fiscal deficit to a projected 7 percent of GDP in 2025. This has raised public debt to 59 percent of GDP, a 10 percentage point increase in two years.
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