Poland’s real economic data for the month of June continued to be strong. The nation’s retail sales and industrial output continued with their recent momentum. Poland’s industrial production growth, on a seasonally adjusted basis, accelerated 0.7 percent month-on-month and 3.6 percent on an annual basis.
The industrial output on a seasonally adjusted basis has been expanding at a stable rate in recent months. The underlying growth rate so far in 2016 is expected to be around 4 percent, noted Commerzbank in a research report. Meanwhile, the PMI is hinting at some risks in the months ahead. Also, the Brexit vote is expected to weigh on leading indicators in the next reading, added Commerzbank.
In the mean time, the Polish government has affirmed that the retirement age would be lowered to 65 from 67 for men and to 60 for women. Poland’s government expects budget cost of PLN 10 billion from this. The Polish zloty has sharply rallied this week; however, the EUR/PLN pair is expected to remain volatile around 4.45, according to Commerzbank.