The domestic market is the main market on which the companies comprising the Energa SA Group operate. Accordingly, variations in business conditions measured by GDP change rates, inflation or unemployment rates translate to electricity, heat and gas prices and shape demand for products pro-vided to customers.
According to the preliminary estimate of the Central Statistical Office (GUS), the gross domestic prod-uct (GDP) increased in real terms by 4.6% over the year 2017 (vs. 2.9% growth in 2016).
Domestic demand remains the driving force of the Polish economy, especially individual consumption, which increased by 4.8% over the year. Growing household income, record low unemployment rate, improving consumer sentiment and low interest rates contributed to an increase in the consumer spendings. Contrary to the previous year, the economy was also supported by investment demand and net exports.
the average annual
consumer price index
the registered unemployment rate at the end of December 2017
the rate of increase of the average employment in the enterprise sector
the rate of increase of the average monthly salary (gross) in the enterprise sector
The good economic conditions globally provide strong support for Polish exports and improve its outlook. Dynamic economic growth driven by an increasing domestic and international demand also affected the labor market situation. The average headcount in the enterprise sector in 2017 increased by 4.5% compared to last year.
The price index of industrial output sold increased by 2.9% in 2017 compared to the same period of the previous year. Prices in all the sections were higher than the year before, including the highest growth observed in mining and extraction (by 19.4%). In the sector of generation and supply of elec-tricity, gas, steam and hot water, prices grew at a level of 0.2%.
The overall average annual consumer price index in 2017 was 2.0% vs. 2016, when 0.6% deflation was recorded. According to analysts, the inflation drivers included the increasing prices of energy and energy fuels. The fuel prices also contributed to the variation in inflation rates (especially in the first half of the year). The Monetary Policy Council believes that the coming quarters will see the continuation of the good business conditions and inflation will approximate the inflation target (2.5% with a symmetrical deviation range of ±1 percentage point); accordingly at its most recent meeting, the Council chose not to change the interest rates, keeping the reference rate at 1.5%.