(Bloomberg) -- Poland’s economy slowed last year, weighed down by the Russia’s invasion of Ukraine and a string of rapid interest-rate increases.

Gross domestic product growth decelerated to 4.9% in 2022, the statistics office said in preliminary reading on Monday. Most economists surveyed by Bloomberg predicted a slowdown to 4.8% from revised 6.8% a year earlier. Growth was driven by industrial production, while consumer spending slowed. There was no quarterly breakdown.

The combination of flagging growth and almost quarter-century high inflation comes as Poland readies for general elections in the fall. Reacting to soaring inflation, the central bank lifted rates to the highest level in a decade, but has held off from further tightening since October. 

Governor Adam Glapinski expects Poland to slip into a brief recession in the first quarter of this year. That was prevented last year as a set of measures — including tax cuts and a break in mortgage payments — was put in place because of the war in neighboring Ukraine.

--With assistance from Barbara Sladkowska.

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