Poland's growth momentum may slow towards the end of 2007 - central bank survey

WARSAW (Thomson Financial) - Polish growth momentum may slow towards the end of this year after the economy expanded at its fastest rate in a decade in the first three months of 2007, a central bank's survey of local companies showed today.

The companies expect their output and demand in the fourth quarter to be lower than a quarter earlier, but plan to boost hiring, the bank said in its quarterly survey.

'It's hard to say, whether the economy is entering a slowdown, or we are only seeing a temporary weakness in growth dynamics,' the central bank said.

Companies face rising competition from imported goods coupled with strong zloty currency, which has additionally weakened their competitive edge. They are also beginning to feel the pinch from tightening labour market after the unemployment fell to a multi-year lows.

'At the moment, 10 percent of the companies are hiring employees from abroad and another 10 percent is considering this,' the central bank said.

Source:By Paweł Sobczak