Boomtastic news: GDP growth is up and better than expected

GDP in Poland came in 5.1 percent in the third quarter, exceeding estimates by economists, and quashing fears that weakening growth in Germany might spill over into Poland.

The preliminary figures, released by the Central Statistics Office on November 14 in a flash estimate, come in higher than the 4.7 percent many expected Polish GDP to grow by in the third quarter.

Even though the statistics office did not publish the components of the GDP data as it was just a flash estimate, market observers say that investment – seen by analysts as crucial to the growth outlook – has had a positive effect on GDP.

“The pace of investments has likely risen (in the third quarter) owing to increased public spending ahead of local elections as well as a rebound in private investment,” an analysts at ING Bank Śląski wrote in a comment after the estimate was published.

Poland’s has also been helped by strong consumer spending and a 28-year-low unemployment rate that came in at 5.7 percent in September this year.

The strong growth comes despite economic tremors affecting some of the world’s major economies. 

In Japan GDP has fallen to 1.2 percent while Germany’s fell to 1.1 percent in the third quarter. 

The fall in German growth, the first since 2015, came as falling consumer spending and a weakening trade position took their toll on Europe’s largest economy. 

But so far Berlin’s troubles have failed to damage the Polish economy despite Germany being Poland’s main trading partner. 

Poland’s GDP growth rate among the fastest in the European Union, has also been helped by Poland remaining one of the largest recipients of EU funds.

Statistics office figures for October on the Consumer Price Index showed a 0.4 percent increase on the previous month, and 1.8 percent, year-on-year increase.