Sagging March industrial output blamed on weak exports, experts worried

The Central Statistical Office (GUS) said yesterday the industrial output in Poland was only 11.5% higher than in February that is 6.8% higher than March last year against a 16.3% rise in February. Analysts expected that in March the industrial production would be 13- 20% higher than last month. They put the blame for the slow-down on weak exports. For the first time manufacturing grew slower than the industrial output as a whole. However, according to Tadeusz Chroscicki from the Government Center for Strategic Studies (RCSS) the cause of this situation is low domestic demand. If in next two to three months the industrial output will increase at such a slow rate it can be a bad sign for the whole economy said CDM Pekao S.A. chief economist Iwona Pugacewicz-Kowalska. (Gazeta Wyborcza, page 20, Prawo i Gospodarka, page 1, 3, 5) E.B.