Q1 growth hits record high thanks to soaring investments

The main engine of growth were corporate investment, which soared by 29.6%, and private consumption, which jumped by 6.9%. The boom in corporate investment is set to continue, as companies operate at near full capacity. Moreover, the share of corporate investment in GDP is still below the EU average. However, while inflation has so far remained low, soaring consumption means an increase in interest rates in the near future is more likely. Most economists now agree that growth will top 6% for the year as a whole. In its annual report on new EU member states released yesterday, the World Bank predicts growth will be 6.1% this year. But in order to make it sustainable, more structural reform is needed, especially in labor market policy. (Parkiet, p. 1, 15; Puls Biznesu, p. 6, 7; Gazeta Wyborcza, p. 28; Rzeczpospolita, p. B1, B2) R.M.