Exports are the engine driving industrial production increases in QI 2006

The situation is much better than economists expected. In February, industrial production grew y-o-y by 10.1%. This is unchanged on the figure for January. "This is very pleasing. It means that economic growth in the first quarter will be even higher than in the previous quarter. It should reach 4.6% as compared with 4.2% in the last quarter of 2005," said Katarzyna Zajdel-Kurowska, chief economist with Bank Handlowy. Data from the statistical office suggests that exports are the main factor in the increase in industrial production, which is shown by increases in production in export sectors such as radio and television (nearly 100% growth), cars (15%) and machines and devices (13%). One sector of the economy that performed poorly was the production of buildings materials, which fell in February by 3.5% (Puls Biznesu, p. 8) S.D.