The Polish economy has recovered from the temporary slowdown in 2012–13 and has continued the progress in rebuilding policy buffers. Economic growth last year slightly exceeded expectations, while continued fiscal consolidation efforts resulted in Poland’s exit from the EU’s Excessive Deficit Procedure (EDP) one year ahead of schedule. External position is consistent with fundamentals and appropriate policies. Financial sector remains sound and resilient. Similarly to the developments in the rest of Europe, inflationary pressures had subsided and in the second half of last year inflation turned negative. Implementation of structural reforms has continued. Overall, the outlook is for robust growth and gradual return of inflation towards the target over the medium term. At the same time, risks remain tilted to the downside and dominated by external factors.
On behalf of our Polish authorities, we would like to thank staff for the constructive consultations held in Warsaw and the timely and policy-relevant set of papers. The authorities broadly agree with staff’s assessment and policy recommendations.