30.08.2010: Poland’s GDP jumps ahead in Q2
Beating analysts’ and indeed ministers’ expectations, official figures for Poland’s economic growth for the second quarter of this year are very positive. GDP grew by 3.5% year on year.
Only Germany’s economy grew faster (4.1%) during this period, but one has to bear in mind that a year earlier, it was contracting, while Poland’s grew, albeit at a slower pace (1.1% Q2 2009).
Looking at the contributors to Polish GDP, value added by industry grew by 2.1%; in the construction sector by 3.5%, while in services, value added fell by -0.1%. Domestic demand grew by 1.1%, consumption grew by 0.6% (consumer consumption by 0.7%). Investment in fixed assets grew by 12.9%.
The Q2 figures suggest that the more optimistic analysts were closer to the truth – it is now hard to see how for the whole of 2010 GDP growth could end up less than 3.0%.
Again – strong economic arguments for those British investors who’ve not done so yet to look carefully at Poland with an eye to market entry. Exporters too should look at the robust consumer spending, while financiers should bear in mind that non-performing loans in Poland are only 8% of total debt. Add to the macroeconomic picture political stability, and the case for entering the Polish market are strong and getting stronger.
Michael Dembinski – British Polish Chamber of Commerce