July 18, 2019 / 8:47 AM / a month ago

Poland's central bank governor downplays surprising fall in output

FILE PHOTO: Poland's central bank governor-designate Adam Glapinski speaks during a hearing at a parliamentary panel at the Parliament in Warsaw, Poland May 20, 2016. Agencja Gazeta/Kuba Atys via REUTERS/File Photo

WARSAW (Reuters) - A surprising fall in Poland’s industrial output in June, the first one since April 2017, was not a reason for concern as a slight economic slowdown is in line with the central bank’s assumptions, the bank’s governor said on Thursday.

Earlier, Poland’s statistics office said that industrial output fell unexpectedly in June by 2.7%, while analysts had expected the output to rise by 2.0%.

“Polish economy slows down slightly, but this is all in line with our projections,” Adam Glapinski told Reuters, adding that the unexpected fall in June output is not a reason to worry.

Economists point to a calendar effect as well as negative impact of slowdown outside Poland.

“The negative external environment eventually took its toll on the Polish industry that seems to no longer be resilient to gloomier growth perspectives in the Eurozone,” Erste Group said in a note.

Erste analysts also said that the fall in June output suggests that economic growth in the second quarter may come at 4.5% rather than 5% expected earlier.

Poland’s central bank expects Gross Domestic Product (GDP) growth at 4.5% this year.

Reporting by Anna Koper; Writing by Agnieszka Barteczko; Editing by Angus MacSwan

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