By Martin M. Sobczyk

WARSAW--Poland's economic growth slowed to 2.5% in annual terms in the third quarter, the weakest rate of expansion in three years.

The third-quarter growth rate slowed from 3.1% in the second quarter and was below expectations of 2.9%. Poland's gross domestic product rose 0.2% from the second quarter.

The lower-than-expected reading was mainly due to a continued slump in the construction sector, which has been shrinking in double digits over the past few quarters.

Retail sales growth continued in the third quarter and domestic demand was positive, mainly driven by consumer demand, said Maria Jeznach, director at the Polish statistics office. Consumer sentiment improved as wages continued to grow, she added.

According to preliminary estimates, the Polish economy grew 2.9% in annual terms in the first three quarters of 2015 compared with growth of 3.4% a year earlier.

Write to Martin M. Sobczyk at martin.sobczyk@wsj.com

(END) Dow Jones Newswires

November 15, 2016 04:32 ET (09:32 GMT)

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