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Economic growth to pleasantly surprise analysts

In terms of Poland's economic growth, it is likely that 2006's results will positively surprise all economists.

The Economy Ministry hopes to see a 5.8% GDP growth in Q4 of this year, and a 5.5% over the whole of 2006. Despite the numerous announcements from skeptics, the increasing strength of the national currency did not effect export dynamics which will probably exceed 20% this year.

However, the engine behind economic growth was internal demand, with double digit dynamics in investments and consumption, growing by some 5%. This would not be possible without the largest surprise of the passing year: the labor market.

The unemployment rate at the beginning of 2006 stood at 18%, falling to 14.8% over the following 11 months. All this was achieved maintaining a planned low level of inflation.

(WBJ 28.xii.06)

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