Polish retail sales grew 11.9% y/y in constant prices in April, the statistics office GUS announced on May 23.
The reading marks a gain of as many as 10.1pp in retail turnover growth in comparison to y/y expansion recorded in March. The pick-up owes to the calendar effect, with sales spiking because of Easter but also to Polish households’ general inclination towards increased consumption, driven by the good situation on the labour market – low unemployment and growing wages.
Retail sales returning to two-digit growth values in April support the good outlook for GDP at the beginning of the second quarter.
Poland’s GDP growth came in at 5.1% y/y in 2018, the fastest expansion in over a decade. The economy also expanded 4.6% y/y in the first quarter in adjusted and non-adjusted terms alike in a show of resilience amidst the worsening of the external environment.
All retail segments expanded y/y sales in constant prices in April, GUS data showed. Sales of food, drinks, and tobacco products jumped 18.2% y/y, clearly because of Easter. Sales also grew fast in the lump category of “other sales,” at 20.7% y/y.
Sales of furniture, audio-video equipment, and domestic appliances grew 19.5% y/y. Sales of cars, motorcycles, and car and motorcycle parts also grew fast, at 13.3% y/y.
In monthly terms, retail sales grew 3.5% in constant prices in April. In current prices, retail sales grew 13.6% y/y and 4.4% on the month.
“In the coming months, the increase in retail sales will be noticeably slower but it will remain strong. We expect the retail segment to benefit from its solid foundations, growing wages and increasing employment rate,” Bank Millennium said in a comment on GUS figures.