End of spending spree

The biggest boost in production was observed in the first two quarters of last year. According to the report, this was mainly due to Poles going on a spending spree, in anticipation of price increases as a result of Poland's accession to the EU.

Production grew in almost all enterprises. In 2004, 21 out of 29 industry sectors recorded higher sales. The highest growth was in vehicle and trailer production, television and telecommunication devices, and transportation equipment.

In the first quarter of 2004 manufacturing was the most important factor in Poland's economic growth. The share of this sector in the Polish economy is 27 percent.

However, this year growth is set to slow down. According to Andrzej Grabarczyk, an adviser in the department of analyses and economic prognoses at the Ministry of Economy, growth for 2005 of sales in manufactured goods is expected to be around 3.7 percent.