Poland's economy topped analysts' expectations and grew by 3.9 percent year-on-year in the second quarter as it maintained strong momentum from the previous quarter, a first estimate showed on Wednesday. The statistics office GUS said Poland's economy, the biggest in the eastern nations of the European Union, expanded by 1.1 percent on a quarterly basis in the April-June period, unchanged from the first quarter.
Analysts polled by Reuters expected growth of 3.8 percent year-on-year and 0.8 percent quarter-on-quarter. Growth was still mainly supported by consumption, aided by record low unemployment and new child benefit payments introduced last year, analysts said. "The Family 500+ (child benefit) programme as well as a favourable labour market are still supporting consumption," said Monika Kurtek, chief economist at Bank Pocztowy.
"Most likely investment started growing in the second quarter after five quarters of declines," she said. However, the head of the national accounts department at the statistics office said corporate investment probably made a neutral contribution to second-quarter growth.
"With respect to the corporate sector, then with very large caution one can say that this contribution to second-quarter GDP growth ... was close to neutral," Maria Jeznach of GUS said. Jeznach said the statistics office still did not have key information regarding public investment in the three months to June.
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