Subdued investment likely to have impacted Poland’s Q3 economic growth

The Central Statistical Office of Poland is set to release the country’s third quarter economic growth breakdown details tomorrow. The flash estimates had shown that the Polish economic growth decelerated to 2.5 percent year-on-year in the third quarter. The upcoming breakdown might affirm the preliminary figure.

Subdued investment is expected to have impacted the Polish economic growth in the second half of 2016 as it did in the first half of this year, according to a Societe Generale research report. Moreover, net export is likely to have contributed negatively to the third quarter economic growth. Private consumption is mainly driving the Polish GDP.

The Polish economy is likely to see a visible rebound in the fourth quarter. There were already signs of softness in industry in the latest PMI decline and in the October industrial production data. But consumption growth is likely to come in stronger in the December quarter. This is mainly because of the positive impacts of the child benefits program, labor market trends and the earlier transfer of EU funds to farmers, added Societe Generale.