This article is a part of Poland Unpacked. Weekly intelligence for decision-makers
Seasonally adjusted output in the services sector rose by 6.6% year on year in April, according to Statistics Poland (GUS). This represents a robust pace of growth. By comparison, industrial production increased by 2.5% year on year over the same period.
Interactive chart Services have been the main engine of Poland’s economic growth for several years. Compared with the average level recorded in 2021, services output was 30.1% higher in April this year. The sector, however, is highly diverse, and not all of its segments are expanding at the same pace.
Which industries are growing the fastest?
Interactive chart Statistics Poland (GUS) identifies six main categories within the services sector. The strongest increase compared with the average level in 2021 was recorded in accommodation and food services. In April, activity in this segment was 53% higher (seasonally adjusted).
These figures, however, are significantly influenced by the base effect. During the first half of 2021, pandemic restrictions were still in place for restaurants and hotels, which depressed activity levels. This is clearly visible in the data. In practice, growth in this segment has been substantial, but not quite as dramatic as the headline figures suggest.
The second-fastest growing area is information and communication services. In April, services output in this category was 48% higher than the 2021 average. Growth in this segment has been remarkably steady. The main driver has been stronger demand for IT services. The data show no signs of a slowdown in activity so far. There are currently no indications that artificial intelligence tools are affecting the overall level of demand, although they may be influencing its structure.
Strong growth has also been recorded in professional, scientific and technical activities, where output in April was 35% above the 2021 average. In other areas, growth has been more moderate. Output in transportation and storage increased by 21% compared with 2021, while real estate activities and administrative and support services rose by 15%. It is worth noting, however, that services output has not declined in any segment. This contrasts with manufacturing, where some industries have reduced their activity compared with 2021. Services are driving Poland’s economy, and there are few signs that this trend will change in the near future.