The largest GDP for ten years!

June 1, 2007 Ela Pawełek-Lubera

The growth in GDP in the first quarter of 2007 equalled 7.4%, which is the highest level for ten years. Over the coming months there is expected to be a slight slowing of the tempo of economic growth; but it won’t be lower than last years.

For comparison – the growth in GDP in the first quarter of last year reached “only” 5.5%. Economists expected economic growth of app. 7.2%, with their forecasts varying between 5.9% and 7.2%.

The rapid tempo in growth was caused by domestic demand. As in the last two quarters of last year, the tempo of growth in domestic demand was higher than GDP and reached 8.6%. In the 1st quarter of this year, the influence of individual consumption on GDP strengthened. The influence of investment demand was less than in the IV quarter of last year. Somewhat weaker than in the previous quarter, was the negative effect of exports on the dynamic of economic growth.

A significant factor of the economic growth were exports, supported by strong growth in the building industry. The building and construction sector is however dependant on unforeseeable weather factors, e.g. mild winters, encouraging the continuity of work.
In the second quarter, there is expected a growth in GDP of about 6.5%; from the forecasts relating to the whole of 2007, it appears that growth will equal an average of 6.0% over the whole year (expectations: 5.7-6.3%), as against 6.1% last year.

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