Poland: Economy expands in Q2 driven by domestic demand
August 31, 2011
In the second quarter, GDP increased 4.3% over the same quarter of the previous year. The result was marginally above market expectations of a 4.2% expansion and slightly below the 4.4% growth registered in the first quarter. Compared to the previous quarter, the economy increased a seasonally adjusted 1.1%, at the same pace observed in the first quarter. Domestic demand remained the most significant driver of GDP growth, adding 4.3% in the second quarter (Q1: +4.5% year-on-year). Private consumption rose 3.5% over the same period last year, below the 3.9% increase tallied in the first quarter. Gross fixed investment expanded 7.8%, up from the 6.0% rise in the previous quarter. The net contribution from the external sector to overall economic growth improved compared to the first quarter. Exports grew 6.7% in the second quarter (Q1: +5.9% yoy) while imports increased 6.6% (Q1: +6.2% yoy). As a result, the net contribution from the external sector to overall economic growth inched up from minus 0.1 percentage points in the first quarter to 0.0 percentage points in the second, thereby having no effect on the GDP reading. At the sector level, industry increased 4.1%, down from the 7.8% rise recorded in Q2, while services also expanded 4.1% (Q1: +3.3% yoy). The Central Bank sees the economy growing 4.0% in 2011 and 3.2% in 2012.