Economic growth to pleasantly surprise analysts

The Economy Ministry hopes to see a 5.8% GDP growth in Q4 of this year, and a 5.5% over the whole of 2006. Despite the numerous announcements from skeptics, the increasing strength of the national currency did not effect export dynamics which will probably exceed 20% this year. However, the engine behind economic growth was internal demand, with double digit dynamics in investments and consumption, growing by some 5%. This would not be possible without the largest surprise of the passing year: the labor market. The unemployment rate at the beginning of 2006 stood at 18%, falling to 14.8% over the following 11 months. All this was achieved maintaining a planned low level of inflation. (Puls Biznesu, Dec. 27, p. 7) A.K.