GDP growth accelerating further

Acco140515_GDP2_ENrding to the preliminary data, GDP grew by as much as 3.5% year-on-year in the first quarter of 2014, a pace not seen since 2006. The seasonally and working day adjusted GDP expanded by 3.2%. Compared to the previous quarter, GDP climbed 1.1% in the first quarter, which came as surprise, and besides – according to the Eurostat data – the highest quarter-on-quarter growth rate within the European Union (matched only by Poland).

The preliminary CSO report suggests, in line of the output data already known, that 140515_GDP1_ENeconomic growth was driven by the boom in construction and industry. As for the expenditure side, probably all the main components (private consumption, fixed investments, net exports) contributed to growth in the first quarter.

The pace of quarter-on-quarter growth is likely to slow down considerable during the coming quarters (followed by the year-on-year growth in the second half of the year). But even so, in the light of the new data, the average growth in 2014 will higher than previously expected – it may easily hit, even slightly surpass 3%.