Poland to Maintain Solid Growth

Polish economy’s all significant macro fundamentals appear quite strong. This positive impression has been affirmed by the macro statistics released this week, which included the industrial production data, labor market data and retail sales data, Econotimes reported. In spite of an expected negative base effect the deceleration in the annual growth of employment, real wages and industrial production have been quite modest that signifies that all mentioned Polish economy’s parts have been performing well in the third quarter, noted KBC Market Research in a report. The construction sector and the retail sales are the two segments of the economy that have been performing especially well. The construction activity rose by one-fifth of year-on-year basis in August, underpinned by solid infrastructure activity. Meanwhile, retail sales growth reached nearly 7% year-on-year in real terms last month. This indicates a very solid growth of the Polish domestic demand, which should guarantee another impressive GDP reading. The strong domestic demand underpinned by low interest-rate environment and steady zloty have had some expected negative impact on the trade balance performance.