Initial 2004 growth was good but the economy is still on thin ground

The economy grew at a rate of 6.1% in the second quarter, which was slower than at the beginning of the year, but in line with analysts' expectations. However, at the same time companies invested 3.3% in fixed assets, which is 0.2% less than in the first quarter. This information surprised analysts as, "Based on the data of investments in large companies, we expected a higher rate, one even reaching 10%," said Piotr Bujak from BZ WBK. According to economists, firms are reluctant to invest, as they fear the unstable legal environment, political insecurity and uneasiness related to functioning on the EU market. Analysts expect that the economy will slow down over the next two quarters and estimate that H1 GDP growth will stand at 6.5%. (Parkiet, p. 8) M.M.