Economy surprises again
Posted September 4th, 2007 in Business news by Ela Pawełek-LuberaAfter an exceptionally good first quarter of 2007, when the economy developed the most rapidly in almost 10 years, impaired macroeconomic data in subsequent months suggested a significant slowdown in the GDP growth rate in Q2. However, reality turned out to be much better than expectations.
The preliminary estimates of the Central Statistical Office demonstrated that the real GDP growth in the second quarter was 6.7% y-o-y, and seasonally adjusted rate was even higher than in Q1. Such a good result is a consequence of accelerated domestic demand, and primarily very high increase in inventories and gross fixed capital formation. Private consumption grew slightly slower than in the previous quarter, however, still at a solid rate. At the same time, the negative impact of foreign trade upon GDP growth has increased further.
We expect the good economic conditions to be maintained throughout the year, however, in view of the increasing comparative basis, the GDP growth rate will surely not be that high anymore. We forecast that in the entire 2007 GDP will increase by 6.3%.
source: pmrpublications.com
