Polish Economy's Growth Slows to Near One-Year Low in Q1

Poland's economic engine has hit the brakes, with first-quarter GDP growth cooling to a near one-year low of 3.4%. This slowdown, detailed in preliminary data from the Central Statistical Office (GUS), paints a picture of an economy grappling with persistent inflationary pressures, escalating energy costs, and a more restrictive fiscal environment.

The figures reveal a noticeable deceleration from the previous quarter, which saw a revised growth of 4.1%. The 3.4% expansion in the first three months of 2026 is not only a step down from the end of last year but also marks the slowest pace since the second quarter of 2025. This cooling trend was also evident in quarter-on-quarter growth, which fell to 0.5% from 1% in the final quarter of 2025, the weakest since the third quarter of 2024.

Analysts had anticipated a slowdown but expected it to be less pronounced, forecasting 3.6% growth. The actual figures suggest that the headwinds facing the Polish economy are stronger than initially projected. While GUS will release comprehensive data on June 1, these initial numbers serve as a stark reminder of the challenges in maintaining robust economic momentum amidst global and domestic pressures.