GUS reports the economy is enjoying growth with almost invisible inflation

According to the Central Statistical Office (GUS), retail sales on an annual basis increased by 10.2% in February. "We can see growing economic activity, demand is accelerating and this is accompanied with almost invisible inflation," said Mateusz Szczurek, chief economist with ING BSK. According to analysts, GDP growth in Q1 might be as high as 4.5% and this level should be maintained for the whole year. "This is a difficult situation for the Monetary Policy Council (RPP)," said Szczurek. Positive symptoms can also be observed on the labor market, but unemployment still remains at a very high level of 18%, but it is 1.4% better than in the first months of 2005. The Center for Social and Economic Research (CASE) is also positive about the economy's future prospects. According to the latest forecast of EUROFRAME-European Forecasting Network, economic growth in Poland will accelerate from 3.2% in 2005 to 4.2% and 4.6% in 2006 and 2007 respectively. (Puls Biznesu, pp. 1,8) M.M.