Poland’s Fourth-Quarter Economic Growth Accelerates on Rising Investment
Poland’s economic growth accelerated in the fourth quarter as investment rose and a weaker zloty buoyed exports.
Gross domestic product expanded 4.3 percent from a year earlier, compared with a 4.2 percent increase in the previous three months, the Warsaw-based Central Statistics Office said today. The median estimate of 27 economists in a Bloomberg survey was 4.1 percent. Output grew a seasonally adjusted 1.1 percent from the previous quarter.
The European Union’s largest eastern nation, the only member of the 27-member bloc to dodge recession in 2009, has remained resilient even as the region’s debt crisis threatens to damp demand for its exports. EU funds improved infrastructure and modernized production, while a weaker zloty kept exports growing. Fixed investment jumped 10.3 from a year earlier in the fourth quarter, while exports grew 8 percent, the statistical office said.
“The Polish economy is very resilient,” Mark Robinson, Carsten Hesse and Mateusz Zawada, analysts at Wood & Co., wrote in a Feb. 29 report. “We are now more bullish on Polish GDP growth.” Growth is “driven by higher investment growth, exports and strong private consumption.”
The zloty strengthened after the data to 4.1183 against the euro at 10:08 a.m. in Warsaw, up less than 0.1 percent on the day. It has strengthened 8.4 percent against the euro this year, the second-best performance among currencies tracked by Bloomberg, behind the Hungarian forint.
Poland’s economy expanded 4.3 percent in 2011, the quickest pace in three years, as companies boosted investment and a weakening zloty buoyed exports, the statistics office said on Jan. 27.
Growth will probably outpace all EU members this year, driven by corporate investment, the European Commission said on Feb. 23. The economy will probably grow 2.5 percent as spending on road and rail upgrades for the Euro 2012 soccer championship helps boost the pace of growth, it said.
“Investment-spending growth is expected to remain robust, supported by accelerating private investment,” the commission said. “The corporate sector is likely to continue to increase capacity, financed by intensifying inflows of foreign capital, retained earnings and growing corporate credit.”
To contact the reporters on this story:
Dorota Bartyzel in Warsaw at email@example.com
Milda Seputyte in Vilnius at firstname.lastname@example.org
To contact the editor responsible for this story: Balazs Penz at email@example.com