Poland's GDP to grow by 1.5% in 2013

The GDP growth in Poland would slow down to 1.5 percent in 2013, while inflation at some 2.3 percent, said a report by the National Bank of Poland's (NBP) Macroeconomic Survey on Friday. According to the NBP, the results of its latest survey revealed significant changes in the assessment of future macroeconomic processes. Forecasts of GDP growth for 2013-2014 and of the CPI were strongly adjusted downwards. Analysts also expect faster deterioration on the labor market. The surveyed experts forecast more monetary easing on the part of the NBP, adding that factors that could suppress inflation include weaker demand, deteriorating labor market and gradual appreciation of the zloty. On the other hand rising global prices of agricultural products, introduction of the climate change and energy package, and hikes in local government regulated prices and phasing out of the EU gas excise reduction will fuel inflation. The central bank stressed that Poland's GDP growth forecasts were further adjusted downwards mainly due to lower euro zone GDP growth projections.