Poland's Q1 GDP grows by 3.3pct y/y - GUS
May 16, 2014
Poland's GDP grew by 3.3% year on year in Q1 2013 and by 1.1% quarter on quarter in seasonally adjusted terms, according to a flash estimate by the Central Statistical Office (GUS).
Poland's Q1 GDP reading confirms the strengthening of the economic growth rate, GUS deputy president Halina Dmochowska commented on the flash reading.
"Importantly, this growth is more and more sustainable: domestic demand is recovering, the positive influence of the trade balance is apparent and also private consumption indicator is improving," the official said. "We have low inflation accompanied by wage growth and rising consumer loans growth."
According to Bank Pocztowy Economist Monica Kurtek the rebound in the Polish economy is a fact. The GDP growth rate is getting increasingly higher (an over 3% rate was last recorded in Q1 2012) and should move towards 4.0% y/y in the coming quarters, Kurtek said.
Talking about the balance of risks to the 2014 budget Finance Minister Mateusz Szczurek said Thursday: "GDP data for Q1 are better than our expectations but, from the budget perspective, low inflation neutralizes that," Szczurek
Poland built its 2014 budget on 2.5% GDP growth and 2.4% inflation but has recently said it now expects 3.3% GDP growth and 1.2% inflation this year.
Annual inflation readings had held flat at a below-target 0.7% in 2014 before dipping to 0.3% for the April reading.