GDP rate beats all expectations

Poland's economic growth slowed less than expected in the second quarter as the GDP results beat forecasted figures with a 5.8 percent rise. The figures beat analyst expectations and even the Finance Ministry's predictions of 5.7 percent.

"These data show relatively strong growth of gross domestic product, which is only slightly weaker than the first quarter. What is important is that domestic demand is still pulling the economy alone, we still have rising investment," said Grzegorz Maliszewski, chief economist with Bank Millennium to Reuters. He added that chances of another interest rate hike are growing and October seems like a plausible date.

While growth is slower than the 6.4 percent reported in the second quarter of 2007, the Finance Ministry believes that the economic growth will slow to 5.0-5.2 percent in the coming quarter, but remains positive that the annual rate will reach 5.5 percent estimated in the budget.

"The data does not pose a risk of [an annual] economic growth of less than 5.5 percent," Deputy Finance Minister Katarzyna Zajdel-Kurowska said in a statement.

Source: Reuters