Poland’s GDP growth to reach 5.4 pct this year – analysts

Sharp increases in retail sales and manufacturing along with a construction sector on the rebound indicate that Polish GDP may grow by 5.4 percent in 2021, according to an economic think-tank

The projections released on Tuesday by the Polish Economic Institute (PIE) came just after the Central Statistical Office (GUS) said that Poland's retail sales increased in real terms by 12.1 percent year on year against the market consensus at 8.8 percent. Month on month, retail sales in Poland fell in real terms by 1.0 percent last month.

"The fastest growth of sales has been registered in clothing items, jewellery, toys and drugstore products," said PIE, which advises the Polish government. "The overall result was dampened by the low turnover of car dealerships due to the global shortage of semiconductors."

This shortage, PIE added, could make car manufacturers suspend their production in the coming months.

But PIE also said that manufacturing growth had been dynamic this year and "has been an optimistic sign" for investors, and added that it expects Poland to end the year with GDP figures of 5.4 percent.