Poland: Retail sales close 2019 with a bang
Nominal retail sales jumped 7.5% year-on-year in December, above November’s 5.9% rise. December’s expansion was broad-based, with the fastest increases recorded for furniture, radio, TV and household appliances; newspapers, books and other sale in specialized stores and pharmaceuticals, cosmetics, and orthopedic equipment.
Meanwhile, annual average growth in nominal retail sales rose from 6.6% in November to 6.7% in December, marking the strongest reading in eight months.
Commenting on the outlook for consumer spending, Jakub Rybacky, economist at ING, stated:
“We expect strong readings in the first quarter. A strong minimum wage hike and solid disposable income growth of less affluent households should boost consumer spending in the coming months. Still, in the longer term (whole 2020) inflation remains a significant threat – the increase in CPI lowers the purchasing power of middle-income households, for example. Therefore both private consumer spending and GDP should decelerate throughout the year.”