Poland skyline at golden hour

Poland GDP Q2 2023

Poland: Economy records sharpest contraction since Q4 2020 in the second quarter

According to a preliminary reading, GDP slid at a sharper pace of 0.6% year on year in the second quarter, below the 0.3% contraction tallied in the first quarter. Q2’s reading marked the worst print since Q4 2020.

The downturn was driven by weakening private consumption and exports. Private consumption contracted 2.7% in Q2, marking the steepest decline since Q4 2020 (Q1: -2.0% yoy). Government consumption bounced back, growing 2.6% in Q2 (Q1: -0.5% yoy), while fixed investment expanded 7.9% in Q2, following the 5.5% increase logged in the previous quarter.

On the external front, exports of goods and services contracted 2.7% in Q2, marking the worst reading since Q2 2020 (Q1: +3.2% yoy). In addition, imports of goods and services dropped at a more pronounced rate of 8.1% in Q2 (Q1: -4.6% yoy).

On a seasonally adjusted quarter-on-quarter basis, economic activity dropped 2.2% in Q2, contrasting the previous period’s 1.6% growth. Q2’s reading marked the largest contraction since Q2 2020.

Commenting on the outlook, Rafal Benecki, economist at ING, stated:

“A gradual rebound in late 2023 and 2024 should be supported by a recovery in private consumption, given improving real household disposable incomes and better consumer sentiment. However, households remain cautious and the revival in consumption is likely to lag the recovery in real purchasing power.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest