...- Economic repercussions of the Russia-Ukraine war will continue to weigh on Poland in 2023, prompting us to project a deceleration in real GDP growth to 0.9% and still-high average inflation of 13%. - At the same time, a decline in European natural gas prices and modest improvements in the external environment suggest short-term macroeconomic risks for Poland have eased. - Despite spending pressure ahead of this year's parliamentary elections and elevated funding costs, the Polish government's decision to discontinue some energy price-related tax rate cuts will likely result in narrower 2023 fiscal deficits than we previously projected, helping net general government debt stabilize around a manageable 45% of GDP over the coming years. - We also believe Poland's competitive and diversified economy, as well as its strong external and public balance sheets, will help mitigate the medium-term risks from a protracted war. - We affirmed our 'A-/A-2' foreign currency and 'A/A-1' local currency...
