Poland: Economic activity decelerates in Q2
August 28, 2015
According to preliminary estimates released by the Central Statistical Office of Poland (GUS), GDP grew 3.3% in annual terms in Q2. The result was in line with the preliminary estimate announced on 14 August and was below the 3.6% growth recorded in the previous quarter.
Private consumption expanded 3.0%, which was slightly below the 3.1% increase tallied in Q1. Government spending decelerated from a 3.3% rise in Q1 to a weaker 2.4% increase in Q2, marking the softest increase in five quarters. Fixed investment decelerated as well, growing 6.4% in annual terms in Q2 (Q1: +11.4% year-on-year). Overall, domestic demand rose 3.3%, which was above the 2.6% expansion recorded in the previous quarter.
On the external side, exports of goods and services expanded 5.2% in Q2, which was significantly below the 8.0% rise tallied in Q1. Imports decelerated as well, increasing 5.4% (Q1: +6.0% yoy). As a result of the stronger deceleration in exports than in imports, net exports’ contribution to GDP growth was flat in Q2, which was below Q1’s positive contribution of 1.1 percentage points.
Author: Eric Denis , Economist