Poland: Economic growth continues to slow in Q2
August 30, 2012
In the second quarter, GDP increased 2.4% over the same quarter last year, which was below both the 3.5% expansion recorded in the first quarter and market expectations of a 2.9% increase. Compared to the previous quarter, economic growth increased a seasonally adjusted 0.4% (Q1: +0.6% quarter-on-quarter). The deceleration in the second quarter mainly reflected a slowdown in gross fixed investment as well as a drop in inventories. Gross fixed investment decelerated from a 6.7% increase in Q1 to a 1.9% rise in the second quarter. In addition, private consumption growth slowed to a 1.5% expansion in the second quarter (Q1: +2.1% year-on-year). Government consumption, on the other hand, fell a slim 0.1% in the second quarter, improving over the 1.3% contraction recorded in the first. Exports expanded a healthy 3.6% in the second quarter (Q1: +4.8% yoy), while imports contracted 2.0%, contrasting the 3.2% rise seen in the first quarter. As a result, the external sector's net contribution to overall economic growth increased from 0.7 percentage points in the first quarter to 2.6 percentage points in the second.