Poland’s industrial production in December 2023 was slightly better than market expectations, with output falling by 3.9% YoY against an expected decline of 5.6%, this caused economists to forecast a rebound in the sector in 2024, with domestic demand being the main driver.
Economists from the Polish Economic Institute wrote on X, that they saw a rebound in 2024, with domestic demand being the main driver due to rapid wage growth.
“We will see a rebound in 2024, with domestic demand being the main driver due to rapid wage growth,” the economists wrote.
“Slower prospects for expansion lie ahead for exporters due to still weak activity in the euro area, improvement in these industries is more of a second-half 2024 prospect,” they added.
ING BSK analysts wrote on X that weak manufacturing was caused by pressure from weak demand from the euro area.
“Unfortunately manufacturing is still weak as it is under pressure from weak demand from the euro area and cautiousness regarding Poland’s economic situation,” the analysts said.
“We had 2 fewer working days in December and the deseasonalized data show a more optimistic picture (+2.9% MoM), after 2 months of declines, but we keep in mind the large contribution of the energy sector,” they added. (PAP/Business World Magazine)
