Poland's GDP grew 3.5% year-on-year in Q2 2010, above expectations for 3.2%, while investments were down 1.7% to bring domestic demand to a 3.9% annual increase, the stats office GUS preliminary estimates out Monday showed.

The headline GDP marks a surge from the 3.0% growth rate recorded in Q1.

Poland's Q2 GDP growth, was built entirely on domestic demand and need not constitute a support for the Polish debt as future outlook remains uncertain, local analysts told PAP Polish News Agency.

The GDP growth is greater than expected mainly because of consumption. The consumption surprised positively. Investment rebound was expected due to a large number of infrastructural investments. BRE Bank Economist Ernest Pytlarczyk commented.

“We expect similar growth in the coming two quarters. Infrastructural investments continue, thus further rebound is likely”, he added.