Individual consumption, the main factor stabilizing the growth rate of domestic demand in 2008, increased at 5.6% rate during the first half of the year and fell to 5.2% in the second.
In particular, in 2008 the total consumption increased by 5.6%, which led to a significant increase in individual consumption (5.4%). The consumption growth rate was highest in 10 years. The factors that determined the scale of this increase are a 3.7 % rise in employment and 6 % rise in real salary. The social benefit fund has increased by 9.2%. The increase in the income of households, which prompted individual consumption, resulted also from subsidies under Common Agricultural Policy.
The high acceleration of investment recorded in 2006 continued through the first half of 2008.
The increase in investment in 2008 resulted from continuing investment processes from previous years.
The investment dynamics was maintained, due to a favourable, though deteriorating financial situation of enterprises resulting from the advancement of the crisis, and an increase in the exploitation of EU funds. The accumulation rate remained high.
However, the growth rate of investment capital has been decreasing since the first quarter of 2007, reaching 15.2% in the first two quarters of 2008. The annual increase of investment capital in 2008 was 8.2%.The main factors contributing to the investment slowdown is the current economic recession and negative assessment of the prospects for economic development.
Impact on budgetary positions
Further to the comprehensive reforms and restructuring activities pursued in 1990s, which required substantial funds and placed a heavy burden on the public finance sector, in recent years the situation in terms of public debt and deficit has significantly improved. Unfortunately, as a consequence of economic slowdown and world crisis, the situation of public finance in 2008 and the first half of 2009 deteriorated.
State Budget receipts
As a result of the deteriorating economic growth of Poland in 2008, the actual state budget receipts were lower than planned. They amounted to PLN 253.5 billion. As compared to 2007, the state budget receipts grew by 7.3% in nominal terms, and by 2.9% in real terms. The ratio of budgetary revenue to GDP in 2008 was 19.9%.
The state budget tax receipts amounted to PLN 219.5 billion and were 3.8% lower than the a
