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polish economy shining bright in a confidence deprived europe

News Posted On: 14 September 2010

The Polish economy is continuing to be among the best performers in Europe. Year on year data for Polish GDP growth wasn't out in Eurostat's flash estimates for the second quarter. But in the revised first estimates they show that Polish GDP has grown 3.8% in the past year.

But that is not the reason for this report, even though that it is one of the highest year on year GDP growths recorded in the EU.

The latest data from Eurostat is on retail sales in the EU, and I have to tell you it makes for some pretty grim reading. After a bright couple of months that gave the retail industry hope in the strengthening of the recovery, it seems that all this talk of austerity has whacked confidence with a sledge hammer.

Spain, Romania, Slovenia, Slovakia, Germany and Denmark all saw growth in the last couple of months, but all fell on the month in July, and most of them fell year on year as well.

Then you have Poland: after growing by 3.4% and 1.6% month-on-month in May and June, both well above the EU average, Polish retail sales fell 0.3% in July. This is unfortunate, but is nowhere near the falls seen in many countries with the worst being a 10.5% drop in Romania.

But when you look at Polish retail sales on an annual basis you see its real power, the year on year growth of 5.2% is the second highest growth in the EU. Making it easy to see why commercial investment property in Poland is currently such hot news.

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