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Poland remains among Europe's fastest growing economies

posted onJune 29, 2018
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The Polish economy, which avoided recession during the global downturn of 2009, is set to grow over 4 percent this year, Jerzy Kwiecinski, the country’s investment and development minister told Radio Poland.

Kwiecinski said he expected GDP growth in the second quarter to be close to the 5.2 percent in the first three months of this year. The minister added that in the first quarter of 2018, the country had the second highest growth in the European Union.

According to Eurostat, the highest growth rates year-on-year in seasonally adjusted series were recorded in Latvia (5.2 percent), Poland (4.9 percent), Hungary (4.7 percent), the Czech Republic (4.5 percent), Romania (4.2 percent) and Cyprus (3.8 percent).

One of the key indicators of the Polish economy's health, the unemployment rate, fell to 6.1 percent in May, the lowest level for that month in 28 years. There were 1,002,200 people registered as jobless in employment offices nationwide in May, down from 1,042,500 in April, Poland's Central Statistical Office (GUS) said.

The number of people working in the public sector as of 31 March 2018, amounted to 9400.1 thousand persons and was by 2.9% higher than last year. The employed in the private sector constituted 67.9%. 

Average paid employment in the first quarter of 2018 amounted to 8935.1 thousand persons and was by 2.8% higher than last year. A high increase in paid employment was observed in the following sectors : professional, scientific and technical activities (by 7.0%), transportation and storage (by 6.6%), construction and administrative and support service activities (by 4.5%), accommodation and catering (by 4.1%), information and communication (by 3.5%), trade; repair of motor vehicles (by 3.3%), manufacturing (by 3.1%).

A slight increase was observed in human health and social work activities (by 0.9%), water supply; sewerage, waste management and remediation activities (by 1.1%), education (by 1.6%). 

A drop in paid employment was observed in mining and quarrying (by 0.8%), electricity, gas, steam and air conditioning supply (by 0.7%); a decline in paid employment was also observed in real estate activities (by 2.6%), public administration and defence; compulsory social security (by 0.4%), financial and insurance activities (by 0.2%). 

Highest GDP growth rate in EU in Q1 2018
 
The average monthly gross wages and salaries in the national economy in the first quarter of 2018, amounted to 4622.84 zl, (EUR 1,096, USD 1,296) and they were by 6.2% higher than in the same period of the last year. In the public sector they comprised 5327.27 zl (an increase by 4.8% as compared to the same period of the last year), while in the private sector 4349.80 zl (a growth respectively by 7.2%).

Compared to the first quarter of the last year, the highest increase in average gross monthly wages and salaries was observed in the following sectors: electricity, gas, steam and air conditioning supply (by 10.1%), administrative and support service activities (by 8.7%), human health and social work activities (by 8.6%), professional, scientific and technical activities (by 8.3%), accommodation and catering (by 8.2%), information and communication (by 7.9%). 

In  transportation and storage, financial and insurance activities, and real estate activities a growth in wages and salaries was similar to the total increase in the national economy, i.e. by 6.7%, 6.6% and 5.8% respectively. 

The lowest increase in wages and salaries was observed in mining and quarrying (by 1.3%), education (by 2.6%), agriculture, forestry and fishing (by 4.1%). 

Wages in Poland averaged 2819.42 PLN/Month from 1997 until 2018, reaching an all time high of 4622.84 PLN/Month in the first quarter of 2018 and a record low of 1008.03 PLN/Month in the first quarter of 1997 according to Trading Economics.

Another important economic indicator, inflation stood at 1.7 percent year-on-year in May. In April, the prices of consumer goods and services stood at 1.6 percent, while in March the figure was 1.3 per cent the statistics office said.