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Wednesday, January 30, 2008

Poland GDP 2007

Poland's economic growth accelerated at the fastest pace in a decade last year as rising employment and wages boosted profits and consumer spending. Gross domestic product expanded 6.5 percent last year, the central statistical office reported,The economy grew 6.2 percent in 2006.

Poland, which is the biggest European Union member in eastern Europe, is counting on accelerating economic growth to help living standards rise to western European levels. However there are conncerns that many years of below replacement fertility, heavy out migration of productive age workers and a rapidly ageing population may have placed a cap on the rate at which the economy can grow without seriously overheating, and despite rather high continuing levels of unemployment there are serious concerns about labour shortages.

The unemployment rate dropped to 11.4 percent in December from a record 20.7 percent in February 2003. Authorities now must grapple with allowing the expansion and keep inflation at bay. Investment rose 20.4 percent in 2007, while domestic demand gained 7.3 percent. Construction rose 15.6 percent and production increased 7.7 percent, the statistical office said in its preliminary estimate today.

At the same time, the proportion of Poles in legal employment increased by a record annual 5 percent in November, putting more money in people's pockets and boosting demand for housing. Construction ``remained one of the flywheels'' of Poland's economy, statistical office head Jozef Olenski said at a press conference today in Warsaw. We had better just hope that the wheel in question doesn't simply fly off its axis.

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