Poland: Plunging investment causes growth to slow to three-year low in 2016
February 1, 2017
According to preliminary estimates released by the Central Statistical Office of Poland (GUS), GDP grew 2.8% in the full year 2016. The result was below 2015’s robust 3.9% expansion but slightly overshot market expectations of a softer 2.6% increase. The reading marked the weakest growth in three years.
Reduced EU development funds drove a plunge in fixed investment, which contracted 5.5% (2015: +6.1%) and limited GDP growth. In contrast, private consumption was robust, growing 3.6%, above 2015’s 3.2% rise. An improving labor market, low inflation and government handouts to families have acted as tailwinds to household spending. Overall, domestic demand rose 2.8% in 2016, marking a deceleration compared to the 3.4% increase recorded in 2015.
A flash estimate of Q4 2016 GDP data will be released on 14 February and detailed data for 2016 GDP will be published on 15 May.