Poland: Economy maintains pace in Q2
August 29, 2014
In the second quarter, GDP increased 3.3% over the same quarter last year. The result, which came in just below the 3.4% expansion recorded in the first quarter, was roughly in line with the 3.2% reported in the preliminary estimate. The expansion in Q2 was driven by domestic demand, whereas the external sector fared worse. Compared to the previous quarter, economic growth increased a seasonally-adjusted 0.6% (Q1: +1.1% quarter-on-quarter).
On the domestic side, private consumption picked up to a 2.8% increase (Q1: +2.6% year-on-year). Government consumption increased a modest 0.8% (Q1: +0.7% yoy). Meanwhile, fixed investment decelerated, but still registered a strong 8.4% expansion (Q1: +10.7% yoy).
On the external side, exports expanded 5.9% in the second quarter (Q1: +7.6% yoy). Meanwhile, imports increased 9.8% (Q1: +6.9% yoy). As imports grew faster than exports, the external sector’s net contribution to overall economic growth swung from plus 0.5 percentage points in Q1 to minus 1.6 percentage points in Q2.
Author: Carl Kelly, Economist