The economic growth is still halted

The industrial production in April with a growth of 6 percent was higher than the result in the corresponding month of the previous year. However, according to the data of the Central Statistical Office GUS, it dropped by 3.1 percent in a monthly comparison. A total of 24 of all 34 industry sectors achieved a growth in which the textile industry (22.1%) and furniture industry (18.4%) reached the highest. The source of growth was private consumption above all. The retail sales increased by 5.5 percent in the annual comparison.

There is still no progress visible in investments, especially in public investments. This is also reflected in the construction industry. In the annual comparison, the construction sector with 14.8 percent remained in the red for the fourth time. The standstill in public investments is the main reason for the decline of the pace of economic growth. After a 4.3 percent economic growth in the quarter before, the economic growth in the first quarter of this year fell to just 3 percent.

Because of the standstill in public investments, also the international economic organisation OECD has reversed downward their newest forecast for the economic development in Poland which originally included very optimistic expectations for the economic growth. At the start of the year the OECD predicted an economic growth of 3.4 percent for this year. In the newest forecast the OECD expect an economic growth of just 3 percent. In their budget planning, the national-conservative PiS government assumes from an economic growth of 3.8 percent.

Source: ‘Wirtschafts-Markt Polen’, Issue 232