Polish economy likely to have expanded slightly slower in Q3

The Polish economy is expected to have come in lower in the third quarter of this year. Subdued investment is impacting the nation’s GDP growth in the second half of 2016 after hurting the economic growth in the first half the year. According to a Societe Generale research report, the Polish economy is expected to have grown slightly lower at around 3 percent year-on-year in the third quarter of 2016.

But, there is a risk on the downside to this projection, and a sharp increase in EU fund inflows and an improvement in investment might not come until next year. The Polish economy continues to be predominantly driven by private consumption, which is due to the positive impacts of child benefits program and the trends in the labor market.

But there are signs that the Polish industry is softening, seen in the latest PMI decline. This is not a positive sign for the economic growth outlook for the fourth quarter, stated Societe Generale.