Poland's Economic Growth Speeds Up

Polish economic growth accelerated to an annual rate of 5.5 percent in the second quarter, the government said Wednesday, a boost for its battle against unemployment.

The expansion of gross domestic product picked up from 5.2 percent in the first quarter to 5.5 percent in the April-June period, the Central Statistical Office said.

In more good news for Poland's economy, the central bank announced Wednesday it was holding its benchmark interest rate at 4 percent, an all-time low.

Inflation is running at just 1.1 percent, giving the bank little reason to raise its rates.

Poland has been struggling to bring down the highest unemployment rate in the European Union. Still, the 15.7 percent rate for July was a five-year low, down from a peak of 20.7 percent in February 2003.

Figures from the statistics office showed a strong rise in fixed investments. Household consumption, however, slowed in the second quarter.

Many foreign firms have invested in Poland since the ex-communist country joined the EU in 2004, drawn by a skilled work force and labor costs that are low compared with Western Europe.

Source:www.chron.com