GDP in the second quarter increased by 11.1% due to consumption: economists
22:07
Gross Domestic Product (GDP) in the second quarter of 2021 increased by 11.1 percent y/y, the Central Statistical Office (GUS) reported. In the previous quarter, GDP fell by 0.9 percent on an annual basis.
The data published by the GUS confirm analysts' predictions that GDP growth in the second quarter was fueled by consumption.
"In our opinion, domestic demand in Poland was strong in the previous quarter, both in terms of consumption and investments," ING bank experts indicated.
The analysts from mBank predicted a similar forecast, as they expected "double-digit consumption and investment dynamics". However, compared to their expectations, the level of investment in the second quarter was weaker. They increased by 5 percent on an annual basis.
Bank Millenium also expected a “continuation of rapid investment growth”. Pekao SA economists speculate that the weaker reading may be caused by a flaw in public investments.
In the second quarter of 2021, domestic demand grew by 12.8 percent, consumption in the household sector by 13.3 percent, and exports by 29.3 percent. On the other hand, imports increased by 35.8 percent.
Investments disappointed. They did not support economic growth as expected. The more so as the previously published results of large companies showed an investment boom. The increase in investments is only 5 percent y/y, which is not good, given the weak benchmark (in Q2 2020, investments fell by 15.4 percent).
