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Slovakia vs. Poland

Economy

SlovakiaPoland
Economy - overview

Slovakia's economy suffered from a slow start in the first years after its separation from the Czech Republic in 1993, due to the country's authoritarian leadership and high levels of corruption, but economic reforms implemented after 1998 have placed Slovakia on a path of strong growth. With a population of 5.4 million, the Slovak Republic has a small, open economy driven mainly by automobile and electronics exports, which account for more than 80% of GDP. Slovakia joined the EU in 2004 and the euro zone in 2009. The country's banking sector is sound and predominantly foreign owned.

Slovakia has been a regional FDI champion for several years, attractive due to a relatively low-cost yet skilled labor force, and a favorable geographic location in the heart of Central Europe. Exports and investment have been key drivers of Slovakia's robust growth in recent years. The unemployment rate fell to historical lows in 2017, and rising wages fueled increased consumption, which played a more prominent role in 2017 GDP growth. A favorable outlook for the Eurozone suggests continued strong growth prospects for Slovakia during the next few years, although inflation is also expected to pick up.

Among the most pressing domestic issues potentially threatening the attractiveness of the Slovak market are shortages in the qualified labor force, persistent corruption issues, and an inadequate judiciary, as well as a slow transition to an innovation-based economy. The energy sector in particular is characterized by unpredictable regulatory oversight and high costs, in part driven by government interference in regulated tariffs. Moreover, the government's attempts to maintain low household energy prices could harm the profitability of domestic energy firms while undercutting energy efficiency initiatives.

Poland has the sixth-largest economy in the EU and has long had a reputation as a business-friendly country with largely sound macroeconomic policies. Since 1990, Poland has pursued a policy of economic liberalization. During the 2008-09 economic slowdown Poland was the only EU country to avoid a recession, in part because of the government's loose fiscal policy combined with a commitment to rein in spending in the medium-term Poland is the largest recipient of EU development funds and their cyclical allocation can significantly impact the rate of economic growth.

The Polish economy performed well during the 2014-17 period, with the real GDP growth rate generally exceeding 3%, in part because of increases in government social spending that have helped to accelerate consumer-driven growth. However, since 2015, Poland has implemented new business restrictions and taxes on foreign-dominated economic sectors, including banking and insurance, energy, and healthcare, that have dampened investor sentiment and has increased the government's ownership of some firms. The government reduced the retirement age in 2016 and has had mixed success in introducing new taxes and boosting tax compliance to offset the increased costs of social spending programs and relieve upward pressure on the budget deficit. Some credit ratings agencies estimate that Poland during the next few years is at risk of exceeding the EU's 3%-of-GDP limit on budget deficits, possibly impacting its access to future EU funds. Poland's economy is projected to perform well in the next few years in part because of an anticipated cyclical increase in the use of its EU development funds and continued, robust household spending.

Poland faces several systemic challenges, which include addressing some of the remaining deficiencies in its road and rail infrastructure, business environment, rigid labor code, commercial court system, government red tape, and burdensome tax system, especially for entrepreneurs. Additional long-term challenges include diversifying Poland's energy mix, strengthening investments in innovation, research, and development, as well as stemming the outflow of educated young Poles to other EU member states, especially in light of a coming demographic contraction due to emigration, persistently low fertility rates, and the aging of the Solidarity-era baby boom generation.

GDP (purchasing power parity)$178.513 billion (2019 est.)

$174.47 billion (2018 est.)

$168.134 billion (2017 est.)

note: data are in 2010 dollars
$1,261,433,000,000 (2019 est.)

$1,206,640,000,000 (2018 est.)

$1,145,323,000,000 (2017 est.)

note: data are in 2010 dollars
GDP - real growth rate2.4% (2019 est.)

3.9% (2018 est.)

3.04% (2017 est.)
4.55% (2019 est.)

5.36% (2018 est.)

4.83% (2017 est.)
GDP - per capita (PPP)$32,730 (2019 est.)

$32,032 (2018 est.)

$30,911 (2017 est.)

note: data are in 2010 dollars
$33,221 (2019 est.)

$31,775 (2018 est.)

$30,160 (2017 est.)

note: data are in 2010 dollars
GDP - composition by sectoragriculture: 3.8% (2017 est.)

industry: 35% (2017 est.)

services: 61.2% (2017 est.)
agriculture: 2.4% (2017 est.)

industry: 40.2% (2017 est.)

services: 57.4% (2017 est.)
Population below poverty line11.9% (2018 est.)15.4% (2018 est.)
Household income or consumption by percentage sharelowest 10%: 3.3%

highest 10%: 19.3% (2015 est.)
lowest 10%: 3%

highest 10%: 23.9% (2015 est.)
Inflation rate (consumer prices)2.6% (2019 est.)

2.5% (2018 est.)

1.3% (2017 est.)
2.1% (2019 est.)

1.7% (2018 est.)

2% (2017 est.)
Labor force2.511 million (2020 est.)9.561 million (2020 est.)
Labor force - by occupationagriculture: 3.9%

industry: 22.7%

services: 73.4% (2015)
agriculture: 11.5%

industry: 30.4%

services: 57.6% (2015)
Unemployment rate5% (2019 est.)

5.42% (2018 est.)
5.43% (2019 est.)

6.08% (2018 est.)
Distribution of family income - Gini index25.2 (2016 est.)

26.1 (2014)
29.7 (2017 est.)

33.7 (2008)
Budgetrevenues: 37.79 billion (2017 est.)

expenditures: 38.79 billion (2017 est.)
revenues: 207.5 billion (2017 est.)

expenditures: 216.2 billion (2017 est.)
Industriesautomobiles; metal and metal products; electricity, gas, coke, oil, nuclear fuel; chemicals, synthetic fibers, wood and paper products; machinery; earthenware and ceramics; textiles; electrical and optical apparatus; rubber products; food and beverages; pharmaceuticalmachine building, iron and steel, coal mining, chemicals, shipbuilding, food processing, glass, beverages, textiles
Industrial production growth rate2.7% (2017 est.)7.5% (2017 est.)
Agriculture - productswheat, maize, sugar beet, milk, barley, rapeseed, potatoes, sunflower seed, soybeans, porkmilk, sugar beet, wheat, potatoes, triticale, maize, barley, apples, mixed grains, rye
Exports$113.964 billion (2019 est.)

$113.092 billion (2018 est.)

$107.518 billion (2017 est.)
$394.848 billion (2019 est.)

$375.525 billion (2018 est.)

$351.125 billion (2017 est.)
Exports - commoditiescars and vehicle parts, video displays, broadcasting equipment, tires, refined petroleum (2019)cars and vehicle parts, seats, furniture, computers, video displays (2019)
Exports - partnersGermany 22%, Czechia 11%, Poland 7%, France 7%, Hungary 6%, Austria 5%, United Kingdom 5% (2019)Germany 27%, Czechia 6%, United Kingdom 6%, France 6%, Italy 5% (2019)
Imports$107.88 billion (2019 est.)

$105.67 billion (2018 est.)

$100.689 billion (2017 est.)
$364.993 billion (2019 est.)

$353.423 billion (2018 est.)

$328.919 billion (2017 est.)
Imports - commoditiescars and vehicle parts, broadcasting equipment, crude petroleum, natural gas, insulated wiring (2019)cars and vehicle parts, crude petroleum,  packaged medicines, broadcasting equipment, office machinery/parts (2019)
Imports - partnersGermany 18%, Czechia 18%, Poland 8%, Hungary 7%, Russia 5% (2019)Germany 25%, China 10%, Italy 5%, Netherlands 5% (2019)
Debt - external$115.853 billion (2019 est.)

$114.224 billion (2018 est.)
$351.77 billion (2019 est.)

$373.721 billion (2018 est.)
Exchange rateseuros (EUR) per US dollar -

0.82771 (2020 est.)

0.90338 (2019 est.)

0.87789 (2018 est.)

0.885 (2014 est.)

0.7634 (2013 est.)
zlotych (PLN) per US dollar -

3.6684 (2020 est.)

3.8697 (2019 est.)

3.76615 (2018 est.)

3.7721 (2014 est.)

3.1538 (2013 est.)
Fiscal yearcalendar yearcalendar year
Public debt50.9% of GDP (2017 est.)

51.8% of GDP (2016 est.)

note: data cover general Government Gross Debt and include debt instruments issued (or owned) by Government entities, including sub-sectors of central, state, local government, and social security funds
50.6% of GDP (2017 est.)

54.2% of GDP (2016 est.)

note: data cover general government debt and include debt instruments issued (or owned) by government entities other than the treasury; the data include treasury debt held by foreign entities, the data include subnational entities, as well as intragovernmental debt; intragovernmental debt consists of treasury borrowings from surpluses in the social funds, such as for retirement, medical care, and unemployment; debt instruments for the social funds are not sold at public auctions
Reserves of foreign exchange and gold$3.622 billion (31 December 2017 est.)

$2.892 billion (31 December 2016 est.)
$113.3 billion (31 December 2017 est.)

$114.4 billion (31 December 2016 est.)
Current Account Balance-$3.026 billion (2019 est.)

-$2.635 billion (2018 est.)
$2.92 billion (2019 est.)

-$7.52 billion (2018 est.)
GDP (official exchange rate)$105.388 billion (2019 est.)$595.72 billion (2019 est.)
Credit ratingsFitch rating: A (2020)

Moody's rating: A2 (2012)

Standard & Poors rating: A+ (2015)
Fitch rating: A- (2007)

Moody's rating: A2 (2002)

Standard & Poors rating: A- (2018)
Ease of Doing Business Index scoresOverall score: 75.6 (2020)

Starting a Business score: 84.8 (2020)

Trading score: 100 (2020)

Enforcement score: 66.1 (2020)
Overall score: 76.4 (2020)

Starting a Business score: 82.9 (2020)

Trading score: 100 (2020)

Enforcement score: 64.4 (2020)
Taxes and other revenues39.4% (of GDP) (2017 est.)39.5% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)-1% (of GDP) (2017 est.)-1.7% (of GDP) (2017 est.)
Unemployment, youth ages 15-24total: 16.1%

male: 14%

female: 19.7% (2019 est.)
total: 9.9%

male: 9.6%

female: 10.3% (2019 est.)
GDP - composition, by end usehousehold consumption: 54.7% (2017 est.)

government consumption: 19.2% (2017 est.)

investment in fixed capital: 21.2% (2017 est.)

investment in inventories: 1.2% (2017 est.)

exports of goods and services: 96.3% (2017 est.)

imports of goods and services: -92.9% (2017 est.)
household consumption: 58.6% (2017 est.)

government consumption: 17.7% (2017 est.)

investment in fixed capital: 17.7% (2017 est.)

investment in inventories: 2% (2017 est.)

exports of goods and services: 54% (2017 est.)

imports of goods and services: -49.9% (2017 est.)
Gross national saving21.3% of GDP (2019 est.)

22.5% of GDP (2018 est.)

21.8% of GDP (2017 est.)
20.1% of GDP (2019 est.)

19.4% of GDP (2018 est.)

19.5% of GDP (2017 est.)

Source: CIA Factbook