Polish economy slows in Q2 to below-expectation 2.4% annual rate
August 31, 2012
Poland's economy disappointed in the second quarter, slowing to a below-expectation 2.4% annual growth rate with domestic drivers nearly absent despite the Q2 culmination of Poland's Euro2012 preparations.
Finance Minister Jacek Rostowski admitted the figures are "disappointing," but dared venture that Q3 growth will not slow down any further. A senior official at the Central Statistical Office (GUS), however, openly expressed fears that growth rates will fall further in Q3 and Q4.
Full-year targets still seem safe, officials agree. Rostowski sees "no reason" to adjust the 2.5% FY growth forecast on which he built the 2012 budget. Eyeing growth levels through the glass of tax revenues, Rostowski says Q3 looks every bit as strong as Q2.
Poland's zloty took the news on the chin quite quickly, intensifying morning losses and driving the EUR/PLN towards the EUR/PLN 4.20 mark last seen late July before taking pause.
Poland's GDP grew 2.4% year-on-year in Q2 2012, below expectations for 2.9%, with investments up by 1.9% to bring domestic demand to 0.2% annual decline, GUS preliminary estimates out Thursday showed.
Analysts surveyed by PAP Polish news agency expected investments to rise by 5.5% year on year and domestic demand to grow 1.9% y/y.
The headline GDP compares to 3.5% growth rate recorded in Q1 2012.