Polish economy likely to have grown 3.3 pct-3.4 pct in Q2

Polish economy is expected to have grown in the second quarter of 2016, led by domestic factors. According to a Societe Generale report, second quarter GDP is likely to have expanded 3.3 percent to 3.4 percent on an annual basis, as compared with the growth of 3 percent in the first quarter of 2016.

The acceleration is predominantly due to rise in industrial output. The industrial output’s average growth came in at 5.2 percent year-on-year in the second quarter of 2016, as compared with the growth of 2.9 percent year-on-year in the previous quarter. Industrial output determines about 24 percent of the GDP.

Also, retail sales are likely to have come in stronger, growing 3.3 percent on an annual basis as compared with 1.9 percent in the first quarter on average.

Therefore, final consumption expenditure is expected to be the main contributor of growth. Net exports are also likely to have contributed positively to the GDP growth. But there is uncertainty regarding changes in the service sector and inventories that might restrict growth in the second quarter, added Societe Generale.