Economy of Poland
Overview
Poland has steadfastly pursued a policy of economic liberalization throughout the 1990s and today stands out as a success story among transition economies. Even so, much remains to be done, especially in bringing down the unemployment rate - currently the highest in the EU. The privatization of small- and medium-sized state-owned companies and a liberal law on establishing new firms has encouraged the development of the private business sector, but legal and bureaucratic obstacles alongside persistent corruption are hampering its further development. Poland's agricultural sector remains handicapped by surplus labor, inefficient small farms, and lack of investment. Restructuring and privatization of "sensitive sectors" (e.g., coal, steel, railroads, and energy), while recently initiated, have stalled. Reforms in health care, education, the pension system, and state administration have resulted in larger-than-expected fiscal pressures. Further progress in public finance depends mainly on reducing losses in Polish state enterprises, restraining entitlements, and overhauling the tax code to incorporate the growing gray economy and farmers, most of whom pay no tax. The previous Socialist-led government introduced a package of social and administrative spending cuts to reduce public spending by about $17 billion through 2007, but full implementation of the plan was trumped by election-year politics in 2005. The right-wing Law and Justice party won parliamentary elections in September, and Lech KACZYNSKI won the presidential election in October 2005, running on a state-interventionist fiscal and monetary platform. Poland joined the EU in May 2004, and surging exports to the EU contributed to Poland's strong growth in 2004, though its competitiveness could be threatened by the zloty's appreciation. GDP per capita roughly equals that of the three Baltic states. Poland stands to benefit from nearly $23.2 billion in EU funds, available through 2006. Farmers have already begun to reap the rewards of membership via booming exports, higher food prices, and EU agricultural subsidies.
GDP
Real Growth Rate
0%
Per Capita
USD Unknown
From Agriculture
0%
From Industry
0%
From Services
0%
Labour Force
Available for Work
Unknown
Working in Agriculture
0%
Working in Industry
0%
Working in Services
0%
Unemployment Rate
0%
Population Below Poverty Line
0%
Inflation Rate
2%
Investment as Percent of GDP
18%
Budget
Revenues
USD 52,730 (m)
Expenditures
USD 63,220 (m)
Public Debt
US$ 0.00 (m)
Agricultural Products
Potatoes, fruits, vegetables, wheat; poultry, eggs, pork, dairy
Core Industries
Machine building, iron and steel, coal mining, chemicals, shipbuilding, food processing, glass, beverages, textiles
Exports
Value
USD 92,720 (m)
Commodities
Machinery and transport equipment 37.8%, intermediate manufactured goods 23.7%, miscellaneous manufactured goods 17.1%, food and live animals 7.6%
Partners
Germany 28.2%, France 6.2%, Italy 6.1%, UK 5.6%, Czech Republic 4.6%, Russia 4.4%, Netherlands 4.2%
Imports
Value
USD 95,670 (m)
Commodities
Machinery and transport equipment 38%, intermediate manufactured goods 21%, chemicals 14.8%, minerals, fuels, lubricants, and related materials 9.1%
Partners
Germany 29.6%, Russia 8.7%, Italy 6.6%, Netherlands 5.9%, France 5.7%
External Debt
USD 101,500 (m)
Fiscal Year
calendar year
