According to preliminary data, seasonally adjusted GDP growth rose 0.1 percent in the first quarter after it was unchanged in the last three months of 2012. The Flash GDP estimate for Q1 confirms the view that the Polish economy has been slowing down.
Poland has enjoyed uninterrupted annual growth for the past two decades. It was the only EU economy to avoid recession in that period due to significant infrastructure spending, most of it on roads and sports facilities for the Euro 2012 tournament. However, a decrease in spending has dragged down private consumption, the other pillar of Poland's economy.
Preliminary data shows that private consumption may have contracted in the fourth quarter of last year for the first time since 1989. Poland's manufacturing sector shrank at its fastest rate in nearly four years, in Q1, while inflation eased to the lowest level since 2006.
Poland's economy slowed in the first quarter to its lowest year-on-year growth rate in four years, strengthening expectations that the central bank will cut interest rates again soon.