Domestic demand leads Poland’s GDP growth - Economy Ministry
May 28, 2014
Poland likely enjoyed annual growth in investments at 4.3% in the first quarter, which along with consumption growth allowed domestic demand to return as the main driver of GDP growth, Economy Ministry analysts said on Tuesday.
The report follows publication of a flash estimate from the Central Statistical Office (GUS) which put Q1 GDP growth at 3.3%.
"Domestic demand took over the role of driver of Poland's GDP growth in Q1 2014," authors said, citing amongst leading contributing factors "a 2.2% consumption growth and a gradual recovery in investments (growth by 4.3%)."
Such readings may indicate "limiting concerns about future corporate financial conditions and launching of investment plans," the ministry said.
External demand continues to stimulate growth, but its contribution has declined, likely to 0.9 ppts of the Q1 headline GDP growth total, the ministry said.
Poland's gross added value grew by 3.2% in Q1 2014, mainly thanks to stable growth in the services sector. Gross added value in industry grew by 4.5% year on year and by 5% y/y in construction.