Poland Economy Profile 2008

Economy - overview

Poland has pursued a policy of economic liberalization since 1990 and today stands out as a success story among transition economies. In 2007, GDP grew an estimated 6.5%, 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 12.8% in 2007, it remains well above the EU average. Tightening labor markets, and rising global energy and food prices, pose a risk to consumer price stability. In December 2007 inflation reached 4.1% on a year-over-year basis, or higher than the upper limit of the National Bank of Poland's target range. 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. 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. The new government has also announced its intention to enact business-friendly reforms, reduce public sector spending growth, lower taxes, and accelerate privatization. However, the government does not have the necessary two-thirds majority needed to override a presidential veto, and thus may have to water down initiatives in order to garner enough support to pass its pro-business policies.

GDP (purchasing power parity)

$624.6 billion (2007 est.)

GDP (official exchange rate)

$413.3 billion (2007 est.)

GDP - real growth rate

6.5% (2007 est.)

GDP - per capita (PPP)

$16,200 (2007 est.)

GDP - composition by sector

agriculture: 4.1%
industry: 31.9%
services: 64% (2007 est.)

Population below poverty line

17% (2003 est.)

Household income or consumption by percentage share

lowest 10%: 3.1%
highest 10%: 27% (2002)

Inflation rate (consumer prices)

4.1% (December 2007 est.)

Investment (gross fixed)

21.8% of GDP (2007 est.)

Labor force

17.01 million (2007 est.)

Labor force - by occupation

agriculture: 16.1%
industry: 29%
services: 54.9% (2002)

Unemployment rate

12.8% (2007 est.)

Distribution of family income - Gini index

36 (2005)

Budget

revenues: $80.53 billion
expenditures: $88.7 billion (2007 est.)

Public debt

44.5% of GDP (2007 est.)

Industries

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

Industrial production growth rate

10% (2007 est.)

Electricity - production

146.2 billion kWh (2005)

Electricity - consumption

120.4 billion kWh (2005)

Electricity - exports

16.19 billion kWh (2005)

Electricity - imports

5.002 billion kWh (2005)

Oil - production

32,800 bbl/day (2005 est.)

Oil - consumption

462,700 bbl/day (2005 est.)

Oil - imports

480,300 bbl/day (2004)

Oil - exports

51,780 bbl/day (2004)

Oil - proved reserves

96.38 million bbl (1 January 2006 est.)

Natural gas - production

5.828 billion cu m (2005)

Natural gas - consumption

15.58 billion cu m (2005 est.)

Natural gas - exports

42.2 million cu m (2005 est.)

Natural gas - imports

10.01 billion cu m (2005)

Natural gas - proved reserves

158.1 billion cu m (1 January 2006 est.)

Current Account Balance

-$18.13 billion (2007 est.)

Agriculture - products

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

Exports

$137.9 billion f.o.b. (2007 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 27.2%, Italy 6.6%, France 6.2%, UK 5.7%, Czech Republic 5.6%, Russia 4.3% (2006)

Imports

$150.7 billion f.o.b. (2007 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 9.6%, Italy 6.4%, Netherlands 5.7%, France 5.4% (2006)

Reserves of foreign exchange and gold

$61.46 billion (31 December 2007 est.)

Debt - external

$187.8 billion (30 June 2007)

Stock of direct foreign investment - at home

$104.2 billion (2006 est.)

Stock of direct foreign investment - abroad

$10.68 billion (2006 est.)

Market value of publicly traded shares

$149.1 billion (2006)

Economic aid - recipient

$1.524 billion in available EU structural adjustment and cohesion funds (2004)

Currency (code)

zloty (PLN)

Exchange rates

zlotych per US dollar - 2.81 (2007), 3.1032 (2006), 3.2355 (2005), 3.6576 (2004), 3.8891 (2003)
note: zlotych is the plural form of zloty

Fiscal year

calendar year