First quarter GDP slightly up, but economy still showing signs of stagnation

Poland's GDP grew by just 0.5% year-on-year in the first quarter of 2002, meaning very little improvement over the 0.3% growth recorded in the fourth quarter of 2001. Services have been the main driving force of the economy over the past few quarters and this has not changed, as the added value in that sector increased by 4%. However, investments continued to plunge, falling by 13.3% year-on-year. Analysts believe that in order for this tendency to be reversed, and for the Polish economy to pull out of sta gnation, a stronger growth impulse from abroad is needed. The first sign of such an impulse could be the pick-up in foreign trade recorded in April, said Janusz Witkowski, deputy president of the Central Statistical Office (GUS). (Gazeta Wyborcza, June 22-23, p. 24) T.J.