Warsaw, Mar 14 (IANS): Ratings agency Fitch has downgraded Poland's gross domestic product (GDP) growth forecast for 2023 from 1.1 per cent to 0.7 per cent and maintained its earlier projection of a 2.6 per cent growth in 2024.

"With the energy crisis in Europe less severe than expected and energy commodity prices falling significantly, we now project a better start to 2023," Fitch wrote in a report.

"Nevertheless, for the whole year, we forecast growth of 0.7 per cent instead of the 1.1 per cent we expected in December."

Fitch expects domestic demand to remain weak as high inflation "has eroded real incomes and slowed consumer spending", reports Xinhua news agency.

The current level of Poland's benchmark reference interest rate, which is at 6.75 per cent, has had a negative impact on household spending and business investment decisions.

According to Fitch, Poland's inflation will go down from January's 17.2 per cent to 10.5 per cent by the end of the year, while the central bank will maintain a stable interest rate policy throughout the year.