Rapid economic growth gains muffled applause

Gross domestic product (GDP) in Q3 increased to 5.8% as opposed to the 5.5% average forecasted. Strong per-capita consumption of 5.5% was also accompanied by a 19.8% increase in investments. A great result, however, celebrations were diminished by a lack of response from the financial markets. According to analysts, the bigger share of investments in GDP, the bigger the chance for high economic growth. Though investments increased by almost 20% their share in GDP is still unsatisfactory. Compared to other countries, Poland is at the tail end of this classification with Latvia, for example, on 32%. Investments, though, are an unpredictable component of GDP.According to Marcin Mrowiec, an economist from Bank BPH, investment dynamics will fall to 15.3% in Q4, while in 2007 it will be drop further to 11.9%.(Puls Biznesu p.4) M.M