Glapiński sums up: The euro zone is in stagnation. In Germany, GDP decreased

President Adam Glapiński presented an assessment of the current economic situation in December 2023. This is a monthly press conference after the meeting of the Monetary Policy Council, during which the President of the NBP explains the economic environment in which the council made the decision.

– The Monetary Policy Council decided to keep interest rates at the current level. The data released since the last meeting do not fundamentally change our assessment of the situation or macroeconomic prospects in Poland. The economic situation in the environment of our economy is still weak. The euro zone is stagnating. In Germany, GDP decreased in the third quarter. There are some economic problems there, which affects Poland, because it is our main trading partner, said the president of the NBP, Adam Glapiński.

Inflation down

President Adam Glapiński also commented on inflation in Poland. He admitted that NBP analysts predicted what was going to happen very well.

– We are very pleased with the rapid decline in inflation. It is falling and is on the path to our inflation target, he also said.

– In November, the annual inflation rate decreased again and amounted to 6.5%. It was therefore three times lower than the peak in February this year. Over the last nine months, inflation has decreased by almost 12 percentage points. A large part of economists, analysts, and especially economic journalists believed that it was impossible, and the NBP projection predicted it – said president Adam Glapiński.

– Core inflation is also systematically decreasing. According to preliminary estimates, it is already about 5 percentage points lower than at the peak in March this year. This is the inflation that does not take external factors into account when measuring it. After a sharp decline in the previous months, the decline in inflation is now, naturally, slower. This is fully consistent with our previous predictions. NBP forecasts indicate that inflation in Poland will continue to decline in the coming quarters. The NBP projections turned out to be very accurate, and there was a time when they were very strongly attacked and questioned. Inflation will move towards the inflation target and will reach it within two years – also said the president of the National Bank of Poland.