Polish retail sales likely to have grown strongly on solid rise in wages, jobless rate to have stayed at 5.9 pct

Polish retail sales data is set to be released this week. According to an Erste Group Research report, the Polish retail sales is expected to have grown 7.5 percent year-on-year in July. Strong growth in wages of 7.2 percent in the month underpins household spending, which in turn supports retail sales.

In the January to June 2018 period, retail sales growth has been slightly below 2017, as it increased by nearly 8 percent year-on-year as compared with 8.5 percent in the year before. Retail sales growth are expected to be at 7.5 percent in 2018. Therefore, private consumption is expected to be one of the main GDP growth drivers.

Meanwhile, Poland’s unemployment is likely to have stayed at the record low level of 5.9 percent in July. In spite of slightly disappointing figures about the growth of employment, the jobless rate is expected to stay stable, underpinned by seasonal factors, added Erste Group Research.