Polish GDP rose 3.3% y/y, much slower than expected
GDP grew y/y by 3.3% in the third quarter of 2000 compared to 6% growth in Q1 and 5.2% in Q2 of this year, Central Statistical Office (GUS) reported on Thursday. GDP rose over the first three quarters of 2000 by 4.8% compared to the same period in 1999, when the growth rate was 3.2%. The figures were far below expectations for Q3 growth of 4.4% and pushed analysts to revise down their prognosis for the full-year growth to 4.3%-4.5% from earlier 4.5%-4.8%. The data also proved the economy were reacting to the series of interest rates hikes earlier this year more intensively than expected. Economists now expect the rate of growth, which was the slowest one in five quarters is to drop further in Q4. ING Barings now expects 3.2% GDP growth and annual growth of 4.3%. The rate of growth was set at 5.2% in the 2000 budget law but the Polish government's recently revised down its expectations to 5% GDP growth in 2000. After yesterday's report it seemed that the monetary policymakers should immediately reduce borrowing costs to prop up the economy but at its Wednesday meeting, the Monetary Policy Council (RPP) maintained the rates unchanged and made it clear that cuts won't come soon. The GUS also said domestic demand increased 1.3% y/y in the third quarter.Źródło:IntelliNews Daily
