Will it be continued?

GDP growth in the first quarter of the year was roughly as expected, however, it is bound to decline below 3% in 2Q. This will be primarily caused by one-off factors evident already in April economic data releases, however, subsequent data might be also hard to project because of the flood. Nonetheless, we uphold the projection of economic growth in 2010 at slightly above 3% - recovery in the manufacturing sector continues; the construction industry will partly make up for losses in 2H 2010 whilst we consider fall in retail sales fall in April as temporary. We have slightly reduced the projections of investments and construction production throughout the year. more »