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Page 10

ECONOMY

ECONOMIC MONITOR Jan Mazurek, Michael Ström / Brokerage House

Macroeconomic data indicate that the pace of economic growth slowed in Poland in the final months of last year. The slowdown is projected to continue this year.

ECONOMIC GROWTH According to a flash estimate, Poland’s GDP grew 4.0% in real terms in 2019 versus 5.1% in 2018. Domestic demand increased 3.8% in real terms last year versus 5.3% in the previous year. Total consumption grew 4.0% in real terms, with a 3.9% growth in household consumption. In 2019, the rate of investment was at 18.8% and was 0.6 pct. points higher than in the previous year.

ECONOMIC CLIMATE Assessments of business conditions in the manufacturing, financial and insurance, information and communication, and wholesale sectors improved in January 2020 compared to December. More managers viewed the situation of their businesses positively than negatively. Assessments of business conditions in the construction, transport and warehousing, and accommodation and food services sectors were less negative than in December. In the retail sector, assessments of business conditions deteriorated, which may be largely attributable to further restrictions imposed on Sunday trading.

INDUSTRIAL AND CONSTRUCTION OUTPUT In December 2019, industrial output in constant prices generated by businesses providing employment to more than nine persons was 3.8% higher than a year earlier and 9.4% lower than a month earlier. In the full year 2019, industrial output grew 4% year on year while in 2018 it grew 5.8% year on year. After seasonal adjustments, industrial output in December 2019 was 2.1% higher than a year earlier and 2.9% lower than a month earlier.

8  polish market 

In December 2019, construction and assembly output in constant prices generated in Poland by construction firms employing more than nine people was 3.3% lower than a year earlier and 23.7% higher than a month earlier. In 2019, construction and assembly output increased 2.6% year on year while in 2018 it grew 17.9%.

RESIDENTIAL BUILDING The residential building sector is still enjoying an upturn. Last year, 207,200 homes were completed in Poland, 12% more than a year earlier. The number of home starts also increased as did the number of homes for which building permits were issued or notifications with a building design were submitted. Developers completed the biggest number of homes; their share in the market was 63%. Self-build investors had a 34% share in the market. The remaining sectors of the residential building market – the sectors of housing cooperative homes, council homes, affordable rental homes (TBS) and company homes – contributed 3.2% of the dwellings completed last year.

FOREIGN TRADE In the 11 months to the end of November 2019, Poland’s goods exports in current prices were worth PLN934 billion while Polish imports were worth PLN926 billion. Compared to a year earlier, the value of exports increased by 5.9% and of imports by 3.5%. As a result, the trade balance was positive at PLN8 billion against a deficit of PLN13.5 billion a year earlier.

Profile for Polish Market

Polish Market No.2-3 (293)/2020  

"Polish Market” is a prestigious English-language magazine published since 1996. In its pages, it promotes the Polish economy, businesses,...

Polish Market No.2-3 (293)/2020  

"Polish Market” is a prestigious English-language magazine published since 1996. In its pages, it promotes the Polish economy, businesses,...

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