Poland's central bank raised its growth and inflation forecasts, a report from the bank showed on Tuesday.
In the latest Inflation Report, the Narodowy Bank Polski raised the GDP growth projection for this year to 1.3 percent from 1.1 percent seen in July. The outlook for 2014 was raised to 2.9 percent from 2.4 percent. The forecast for 2015 was lifted to 3.3 percent from 3 percent.
Upward revision of economic growth forecasts abroad and higher than expected use of EU funds in 2014-2015 from the new financial framework 2014-2020, were the reasons cited behind the forecast upgrade, the central bank said.
Recent monthly data signaled quicked than expected improvement in domestic conditions and a qurter-point reduction in interest rates will exert a positive impace on economic activity, the bank noted.
The NBP also raised the inflation forecast for this year to 1 percent from 0.8 percent. The projection for next year was lifted to 1.7 percent from 1.2 percent. The outlook for 2015 was hiked to 1.9 percent from 1.5 percent.
"Improved economic activity leading to the reduction in negative output gap and acceleration of wage growth will translate into a moderate rise in inflationary pressure over the medium- and long-term projection horizon," the central bank said. "Despite that, it will remain low throughout the forecast horizon."
by RTT Staff Writer
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