Poland: Economy Overview

Poland has pursued a policy of economic liberalization since 1990 and today stands out as a success story among transition economies. Before 2009, GDP had grown about 5% annually, based on rising private consumption, a jump in corporate investment, and EU funds inflows.

Economy Overview

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 fell rapidly to 6.4% in October 2008, climbed back to 8.9% by January 2010, but remains below the EU average. In 2008 inflation reached 4.2%, more than the upper limit of the National Bank of Poland's target range, but fell to 3.5% in January 2010 due to global economic slowdown. Poland's economic performance could improve over the longer term if the country addresses some of the remaining deficiencies in its road and rail infrastructure and its business environment. An inefficient commercial court system, a rigid labor code, bureaucratic red tape, burdensome tax system, 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 2007-09. The PO/PSL coalition government, which came to power in November 2007, plans to reduce the budget deficit in 2010 and has also announced its intention to enact business-friendly reforms, increase workforce participation, reduce public sector spending growth, lower taxes, and accelerate privatization. The government, however, has moved slowly on major reforms. The legislature passed a law significantly limiting early retirement benefits. A health-care bill also passed through the legislature, but the legislature failed to overturn a presidential veto.

GDP (purchasing power parity):

$688.3 billion (2009 est.)
country comparison to the world: 21
$676.8 billion (2008 est.)
$644 billion (2007 est.)
note: data are in 2009 US dollars

GDP (official exchange rate):

$430.7 billion (2009 est.)

GDP - real growth rate:

1.7% (2009 est.)
country comparison to the world: 90
5.1% (2008 est.)
6.8% (2007 est.)

GDP - per capita (PPP):

$17,900 (2009 est.)
country comparison to the world: 66
$17.600 (2008 est.)
$16,700 (2007 est.)
note: data are in 2009 US dollars

GDP - composition by sector:

agriculture: 4%
industry: 31.1%
services: 63.7% (2009 est.)

Labor force:

17.28 million (2009 est.)
country comparison to the world: 36

Labor force - by occupation:

agriculture: 17.4%
industry: 29.2%
services: 53.4% (2005)

Unemployment rate:

11% (January 2010 est.)
country comparison to the world: 128
9.8% (December 2008 est.)

Investment (gross fixed):

20.2% of GDP (2009 est.)
country comparison to the world: 92

Budget:

revenues: $87.9 billion
expenditures: $95.52 billion (2009 est.)

Inflation rate (consumer prices):

3.5% (2009 est.)
country comparison to the world: 120
4.2% (2008 est.)

Commercial bank prime lending rate:

NA% (31 December 2009)
NA% (31 December 2008)

Stock of domestic credit:

$264.1 billion (31 December 2009 est.)
country comparison to the world: 33
$316.2 billion (31 December 2008 est.)

Agriculture - products:

potatoes, fruits, vegetables, wheat; poultry, eggs, pork, dairy

Industries:

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

Industrial production growth rate:

1.2% (2009 est.)
country comparison to the world: 60

Oil - production:

34,140 bbl/day (2009 est.)
country comparison to the world: 69

Natural gas - production:

5.842 billion cu m (2009 est.)
country comparison to the world: 48

Current account balance:

-$9.598 billion (2009 est.)
country comparison to the world: 175
-$25.55 billion (2008 est.)

Exports:

$142.1 billion (2009 est.)
country comparison to the world: 27
$178.4 billion (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%

Exports - partners:

Germany 26.06%, Italy 6.84%, France 6.78%, UK 6.38%, Czech Republic 5.85%, Netherlands 4.14% (2009)

Imports:

$146.4 billion (2009 est.)
country comparison to the world: 23
$204.4 billion (2008 est.)

Imports - commodities:

machinery and transport equipment 38%, intermediate manufactured goods 21%, chemicals 15%, minerals, fuels, lubricants, and related materials 9%

Imports - partners:

Germany 28.08%, Russia 8.65%, Italy 6.5%, Netherlands 5.59%, China 5.27%, France 4.6%, Czech Republic 4.05% (2009)

Debt - external:

$239.6 billion (31 December 2009 est.)
country comparison to the world: 26
$218 billion (31 December 2008 est.)

Stock of direct foreign investment - at home:

$182.8 billion (31 December 2009 est.)
country comparison to the world: 21
$163.4 billion (31 December 2008 est.)

Stock of direct foreign investment - abroad:

$26.21 billion (31 December 2009 est.)
country comparison to the world: 37
$22.56 billion (31 December 2008 est.)

Exchange rates:

zlotych (PLN) per US dollar - 3.1 (2009), 2.3 (2008), 2.81 (2007), 3.1032 (2006), 3.2355 (2005)

note: zlotych is the plural form of zloty

Source: CIA - The World Factbook