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Poland´s Central Bank Dissatisfied with GDP Growth

Published: September 1, 2012; 00:43 · (Vindobona)

In the second quarter, Poland grew by 2.4% instead of 3.0%. The Polish Central Bank does not want to postpone quantitative easing measures any longer.

Poland´s Central Bank Dissatisfied with GDP Growth / Picture: © Vindobona.org

Although the economic growth flattens, Poland still shows the highest growth rate in the CESEE region. Initially, economists anticipated an economic growth rate of 3.0% in 2012. After a growth rate of 3.5% in the first quarter, GDP growth reached 2.4% in the second quarter of 2012.

Polish economists call for quantitative easing steps in order to promote growth again. Marek Belka, governor of the Polish Central Bank indicated that the base rate may be lowered. In May, Poland´s base rate was lifted to 4.75% from 4.50%.

“The expectations of investors will not be disappointed.” he said. Belka explained that Poland´s most important export markets are stagnating, growth is flattening and investors only hear bad news.

Poland still does not fear a recession in 2013. In 2009, Poland was the only EU member recording a positive economic growth rate. However, the labor market shows first negative signs as job growth has come to an end. For Poland, the high unemployment rate of 12.6% is a big danger for the business cycle. With a share of 60% in GDP, Poland´s domestic consumption is the main growth engine. Despite the stopped growth in employment, the official unemployment rate declined by 0.1 percentage points in June.