Poland: Economy grows at fastest pace in two years in Q1
May 30, 2014
In the first quarter, GDP increased 3.4% over the same quarter last year, which marked the largest expansion since Q1 2012. The result, which came in above the 2.7% expansion recorded in the fourth quarter, was roughly in line with the 3.3% reported in the preliminary estimate. The acceleration was driven by a surge in fixed investment and strong exports. Compared to the previous quarter, economic growth increased a seasonally-adjusted 1.1% (Q4: +0.7% quarter-on-quarter).
On the domestic side, fixed investment accelerated to a 10.7% increase (Q4: +2.0% year-on-year). Private consumption growth was up 2.6% in Q1 (Q4: +2.1% yoy) and government consumption increased just 0.7% (Q4: +3.1% yoy).
On the external side, exports expanded 7.6% in the first quarter (Q4: +6.4% yoy). Meanwhile, imports increased 6.9% (Q4: +4.2% yoy). As a result, the external sector’s net contribution to overall economic growth fell from 1.0 percentage points in Q4 to 0.5 percentage points in Q1.
Author: Carl Kelly, Economist