Polish Economy Grew Faster in 2nd Quarter on German Expansion
Polish economic growth grew faster than expected in the second quarter as a weak zloty and recovery in western Europe spurred exports.
Gross domestic product rose 3.5 percent from a year earlier, compared with 3 percent in the previous quarter, the Warsaw-based Central Statistical Office said today. The result exceeded the 3.2 percent median estimate of 11 economists in a Bloomberg survey.
Poland, the only European Union member to avoid a recession in 2009, was aided by demand from Germany, where GDP expanded at the fastest pace in two decades during the second quarter. The EU forecasts Poland will outperform again this year, growing 2.7 percent, compared with an average of 1 percent for the 27-member bloc.
“The impressive dynamics of Polish exports resulted from strong industrial recovery in Germany, supported by a weak zloty in May and June,” said Radoslaw Cholewinski, chief economist at Noble Bank in Warsaw, before the data release.
The zloty fell almost 7 percent against the euro from April 9, when the central bank bought foreign currency to weaken the zloty from a 16-month high, through the end of June. A weaker currency makes Polish exports cheaper.
First-half exports rose almost 29 percent from a year earlier, the biggest increase since April 2008, according to central bank data. Poland ships 25 percent of its exports to Germany.
Investment dropped annual 1.7 percent, compared with 12.7 percent decline in the first three months of the year. Domestic demand grew 3.9 percent and private consumption expanded 3 percent in the second quarter.