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The Economy of Poland

Polish Economy

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Economy - overview: Poland has pursued a policy of economic liberalization since 1990 and today stands out as a success story among transition economies. In 2008, GDP grew an estimated 5.3%, based on rising private consumption, a jump in corporate investment, and EU funds inflows. GDP per capita is still much below the EU average, but is similar to that of the three Baltic states. Since 2004, EU membership and access to EU structural funds have provided a major boost to the economy. Unemployment is falling rapidly, though at roughly 9.7% in 2008, it remains above the EU average. In 2008 inflation reached 4.3%, more than the upper limit of the National Bank of Poland's target range, but has been falling due to global economic slowdown. Poland's economic performance could improve further if the country addresses some of the remaining deficiencies in its business environment. An inefficient commercial court system, a rigid labor code, bureaucratic red tape, and persistent low-level corruption keep the private sector from performing up to its full potential. Rising demands to fund health care, education, and the state pension system present a challenge to the Polish Government's effort to hold the consolidated public sector budget deficit under 3.0% of GDP, a target which was achieved in 2007-08. The PO/PSL coalition government which came to power in November 2007 plans to further reduce the budget deficit with the aim of eventually adopting the euro by 2012. The new government has also announced its intention to enact business-friendly reforms, reduce public sector spending growth, lower taxes, and accelerate privatization. The government, however, has moved slowly on major reforms. Pension and health-care bills passed through the legislature, but the legislature failed to overturn a presidential veto.

GDP:

GDP - real growth rate: 4.8% (2008 est.) 6.7% (2007 est.) 6.2% (2006 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 4% industry: 31.3% services: 64.7% (2008 est.)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: 3.1% highest 10%: 27% (2002)

Distribution of family income - Gini index: 34.9 (2005)

Inflation rate (consumer prices):

Labor force: 16.95 million (2008 est.)

Labor force - by occupation: agriculture: 17.4% industry: 29.2% services: 53.4% (2005)

Unemployment rate: 9.7% (2008 est.)

Budget: revenues: $117 billion expenditures: $127.3 billion (2008 est.)

Industries: machine building, iron and steel, coal mining, chemicals, shipbuilding, food processing, glass, beverages, textiles

Industrial production growth rate: 6% (2008 est.)

Electricity - production: 149.3 billion kWh (2007 est.)

Electricity - production by source:

Electricity - consumption: 126.2 billion kWh (2006 est.)

Electricity - exports: 13.11 billion kWh (2007)

Electricity - imports: 7.761 billion kWh (2007 est.)

Oil - production: 37,670 bbl/day (2007 est.)

Oil - consumption: 524,000 bbl/day (2007 est.)

Oil - exports: 57,920 bbl/day (2005)

Oil - imports: 499,200 bbl/day (2005)

Oil - proved reserves: 96.38 million bbl (1 January 2008 est.)

Natural gas - production: 6.025 billion cu m (2007 est.)

Natural gas - consumption: 16.38 billion cu m (2007 est.)

Natural gas - exports: 45 million cu m (2007 est.)

Natural gas - imports: 10.12 billion cu m (2007 est.)

Natural gas - proved reserves: 164.8 billion cu m (1 January 2008 est.)

Agriculture - products: potatoes, fruits, vegetables, wheat; poultry, eggs, pork, dairy

Exports: $190.5 billion f.o.b. (2008 est.)

Exports - commodities: machinery and transport equipment 37.8%, intermediate manufactured goods 23.7%, miscellaneous manufactured goods 17.1%, food and live animals 7.6% (2003)

Exports - partners: Germany 25.9%, Italy 6.6%, France 6.1%, UK 5.9%, Czech Republic 5.5%, Russia 4.6% (2007)

Imports: $213.9 billion f.o.b. (2008 est.)

Imports - commodities: machinery and transport equipment 38%, intermediate manufactured goods 21%, chemicals 14.8%, minerals, fuels, lubricants, and related materials 9.1% (2003)

Imports - partners: Germany 29%, Russia 8.7%, Italy 6.6%, Netherlands 5.7%, France 5.1%, China 4.2% (2007)

Debt - external: $227.5 billion (31 December 2008 est.)

Economic aid - recipient:

Currency:

Currency code:

Exchange rates: zlotych (PLN) per US dollar - 2.3 (2008 est.), 2.81 (2007), 3.1032 (2006), 3.2355 (2005), 3.6576 (2004) note: zlotych is the plural form of zloty

Fiscal year: