Poland Q1 GDP Growth Slows From Over 3-Year High

The Polish economy expanded by 3.5% year-on-year in the first quarter of 2026, slightly above preliminary estimates but slowing from an over three-year high of 4.1% in the previous quarter. Growth in domestic demand was 3.7%, down from 4.6% in Q4 2025, driven by household consumption (3.3% vs 4.3%) and public spending (6.0% vs 7.7%). Gross fixed capital formation also lost momentum (2.4% vs 6.6%). Moreover, net exports weighed on growth as imports rose 6.1%, while exports increased by a smaller 5.6%. On a seasonally adjusted quarterly basis, the economy grew 0.6% in Q1 2026, slightly above preliminary estimates but easing from 1.0% in the previous period and marking the weakest expansion since the contraction recorded in the third quarter of 2024.

The Polish economy grew by 3.4% year-on-year in the first quarter of 2026, slowing from a revised 4.1% in the previous quarter. This marked the weakest expansion since the second quarter of 2025, as growth momentum has been gradually downgraded amid persistent inflationary pressures, elevated energy costs, and tighter fiscal conditions weighing on activity. On a seasonally adjusted quarterly basis, GDP edged down to 0.5% in the first quarter of 2026 from 1% growth in the previous quarter, the weakest reading since the third quarter of 2024.

The Polish economy advanced by 4% year-on-year in the final quarter of 2025, confirming preliminary estimates and accelerating from a 3.8% expansion in the previous quarter. The latest figure also marked the fastest growth since the third quarter of 2022, driven by stronger domestic demand (4.2% vs 3.6% in Q3). Household (2.1% vs 2%) and public consumption (1.7% vs 1.5%) both increased, while fixed investment remained solid (1% vs 1.1%). Although inventories (-0.6% vs -1%) continued to weigh on overall performance, their negative impact eased compared to the prior quarter, allowing capital formation (0.4% vs 0.1%) to contribute positively to growth. Meanwhile, net exports (-0.2% vs 0.2%) exerted a slight drag on the economy. On a seasonally adjusted quarterly basis, the economy expanded by 1% in the fourth quarter, the strongest growth for the year, following a 0.9% rise in the preceding period.