Polish Third-Quarter Investments Improve at Larger Companies

Nov. 25 (Bloomberg) -- Polish fixed investments probably improved for the first time this year in the third quarter, economists said.

Fixed investments in companies employing at least 50 people declined 10.6 percent in the first nine months after falling 17.7 percent in the first six month, the Central Statistical Office said today.

This “indicates that the situation in the investments of large enterprises improved in the third quarter,” Warsaw-based Bank BPH said in a report. Investments grew an annual 3.2 percent in the third quarter against an annual decline of 1.7 percent the quarter earlier, according to the BPH’s forecast.

Poland, the largest of the European Union’s eastern members, was the only one of the bloc’s 27 countries to avoid a recession last year as 40 million Polish consumers buoyed domestic demand while exports declined. The economy will expand 3.5 percent this year and 4.1 percent in 2011, according to the World Bank.

“This is good news that we’ve been waiting for for almost two years,” Adam Antoniak, an economist at Bank BPH said by phone. “We’ve had declines in investments since the start of 2009, with an exception of the fourth quarter, when they increased about 0.8 percent, so the third-quarter investments seem to be a real breakthrough.”

The bank forecasts Poland’s economy expanded 3.6 percent in the third quarter. The Central Statistical Office will report its estimate of third-quarter gross domestic product on Nov. 30.

To contact the reporter on this story: Dorota Bartyzel in Warsaw at dbartyzel@bloomberg.net

To contact the editor responsible for this story: David McQuaid at dmcquaid1@bloomberg.net