Poland’s economy recovered by year-end after economic growth had been weak in Q3 2016 (0.4 % q/q). In Q4 2016, real GDP increased by 1.7% (q/q) and 2.7% in annual terms posting an upside surprise versus expectations.
The rise in GDP was accompanied by solid quarterly expansion in average monthly industrial production (3.7% y/y), strong retail sales (5.6% y/y) and passenger car sales (16.9% y/y).
Sustained, positive labor market developments foster a strong domestic economy. Monthly employment grew on average by 3.1 % in Q4, wage growth slowed somewhat to 3.4% and unemployment continued to fall (5.9%) in December.
Economic growth is expected to remain formidable amid a recovery in investment and fiscal transfer to households (Family 500+ programme).
