Economy gathers momentum

The Central Statistical Office (GUS) reported that in March retail sales increased by over 19%, while Grzegorz Maliszewski, an economist from Bank Millennium, expects that economic growth will stand at 7.5% in Q1. "Afterwards it will decrease slightly, but it will exceed 6% for the whole year. The revival has very wide scope. Additionally growing investments enable to assume that positive situation will be maintained in the following quarters," said Maliszewski. According to Lukasz Tarnawa, chief economist of PKO BP, the economy's buoyancy will be observed over longer period of time. "We have at least three years of steady economic growth of 5.5-6.5% of GDP. Growth is balanced and based on three pillars: investments, consumption demand and export. It would be difficult to halt this roller," said Tarnawa. Due to the favorable macroeconomic result the Monetary Policy Council increased interest rates from 4% to 4.25%. (Puls Biznesu, pp. 1, 6-7) M.M.