Poland’s economy grows by 1.7 per cent again

The Central Statistics Office in Warsaw reported on Monday that Poland's GDP rose by 1.7 per cent in the third quarter from the same period a year ago. This figure is above expert expectations that expected 1.5 per cent rise.

It was possible due to two factors: bigger consumption (it rose by 5.7 per cent comparing to the same period in 2008) and higher amount of export (the quality of polish goods has been improved and the price is still very competitive). While the second factor is encouraging, the first may lead to a local “financial bubble”, similar to one that that started the global financial crisis.

However Western European economists have faith in Polish economy. Neil Shearing, economist at Capital Economics in London said: “Indeed, it looks [that Poland-ed.] set to be the only European economy to expand this year”. He expects Poland to finish this year with 1.75 per cent rise of GDP and next year with this figure at 2.25 per cent. He also added that foreign investments in Poland could make this prospect even better.

Meanwhile currency market responded to this information as Złoty rose against both the Dollar and the Euro. According to banking experts such trend should be noticeable until the end of the year.