Data released yesterday show that the Polish economy grew by a stronger than expected 3.5% y/y in Q2 (up from 3.0% y/y in Q1). We have since raised our GDP forecast to 3% this year, from 2.5% previously. But with further fiscal austerity measures likely to be needed in the near term, we expect the current rebound to lose some of its steam in 2011.
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