Investor Presentation - Q2 2021 slide image

Investor Presentation - Q2 2021

Macroeconomic situation and outlook Grand reopening meets recurring (albeit every time smaller) Covid-19 risks 20 Consumers feeling better Unemployment rate expected to decline 10 о -10 -20 -30 Source: GUS -40 Jan.16 12% 10% 8% 6% 4% 2% Source: GUS 0% Jul.16 Jan.17 Jul.17 Jan.18 Jul.18 Jan.19 Jul.19 Jan.20 Jul.20 Jan.21 Jul.21 Consumer Confidence Self-assessed household financial situation As economic restrictions are lifted, consumer spirits follow. Strong balance sheets allow for release of pent-up demand. The structure of consumption will be skewed more for services for some time. GDP path and forecast for Poland (% YoY) Jan.16 Jul.16 Jan.17 Jul.17 Jan.18 Jul.18 Jan.19 Jul.19 Jan.20 Jul.20 Jan.21 Jul.21 Unemployment rate Start of the year did not reveal any (so far) hidden, structural problem in the Polish labour market. Therefore, we stick to the view that cyclicality is going to carry labour market to the stronger side and unemployment rate will lower. Inflation: off 2.5% NBP target, central bank expected to react 12 -9 22630369 5% 11.3 4.8 4.3 5.5 5.1 5.2 5.3 5.4 5.1 5.3 5.1 4.4 3.6 1.9 63.1 3.4 2.8 2.9 6.8 Source: NBP, GUS 4% - 4.9 3% 2% 1% -3 0% 1.5 -0.9 -6 Source: GUS -8.4 -2.8 ! mBank's forecast -1% -2% Q1/16 Q3/16 Q1/17 Q3/17 Q1/18 Investment Inventories Q3/18 Q1/19 Q3/19 Q1/20 Q3/20 Q1/21 Q3/21 Net exports GDP YOY (%) 2015 Consumption 2016 Repo rate 2017 2018 2019 2020 Repo rate forecast CPI inflation CPI forecast 2021 O Core inflation Core CPI forecast 2022 GDP growth is expected to speed up to 5.7% in 2021. Start of the year surprised to the upside with investment activity. Coronavirus risks present but more manageable than during previous waves due to vaccination progress. Investor Presentation - Q2 2021 As expected, Q1/21 marked the trough in annual inflation readings for 2021. Substantial acceleration is in the pipeline (4.2% on average for 2021) and NBP is expected to react in early 2022 and hike interest rates. 26
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