Poland Economy Profile 2009

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 4.8%, 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 (purchasing power parity)

$667.9 billion (2008 est.)
$637.3 billion (2007 est.)
$596.7 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$525.7 billion (2008 est.)

GDP - real growth rate

4.8% (2008 est.)
6.8% (2007 est.)
6.2% (2006 est.)

GDP - per capita (PPP)

$17,300 (2008 est.)
$16,500 (2007 est.)
$15,500 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 4.5%
industry: 31.2%
services: 64.3% (2008 est.)

Population below poverty line

17% (2003 est.)

Labor force

17.01 million (2008 est.)

Labor force - by occupation

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

Unemployment rate

9.8% (2008 est.)
12.8% (2007 est.)

Household income or consumption by percentage share

lowest 10%: 3%
highest 10%: 27.2% (2005)

Distribution of family income - Gini index

34.9 (2005)
31.6 (1998)

Investment (gross fixed)

22% of GDP (2008 est.)

Budget

revenues: $105.5 billion
expenditures: $115.7 billion (2008 est.)

Public debt

45.2% of GDP (2008 est.)
49.9% of GDP (2004 est.)

Inflation rate (consumer prices)

4.2% (2008 est.)
2.5% (2007 est.)

Central bank discount rate

5% (31 December 2008)
5% (31 December 2007)

Commercial bank prime lending rate

5.99% (31 December 2008)
5.72% (31 December 2007)

Stock of money

$118.1 billion (31 December 2008)
$137.4 billion (31 December 2007)

Stock of quasi money

$109.1 billion (31 December 2008)
$93.98 billion (31 December 2007)

Stock of domestic credit

$258.2 billion (31 December 2008)
$223.2 billion (31 December 2007)

Industries

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

Industrial production growth rate

4.8% (2008 est.)

Electricity - production

149.3 billion kWh (2007 est.)

Electricity - production by source

fossil fuel: 98.1%
hydro: 1.5%
nuclear: 0%
other: 0.4% (2001)

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 - imports

499,200 bbl/day (2005)

Oil - exports

57,920 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.)

Current Account Balance

-$28.47 billion (2008 est.)
-$20.12 billion (2007 est.)

Agriculture - products

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

Exports

$175.3 billion (2008 est.)
$145.3 billion (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 24.9%, France 6.2%, Italy 6%, UK 5.7%, Czech Republic 5.6%, Russia 5.3% (2008)

Imports

$199 billion (2008 est.)
$162.4 billion (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 28.3%, Russia 9.9%, Italy 6.2%, Netherlands 5.4%, France 4.8%, China 4.5%, Czech Republic 4% (2008)

Reserves of foreign exchange and gold

$62.18 billion (31 December 2008 est.)
$65.75 billion (31 December 2007 est.)

Debt - external

$243.6 billion (31 December 2008)
$233.1 billion (31 December 2007)

Stock of direct foreign investment - at home

$161.4 billion (31 December 2008 est.)
$176.1 billion (31 December 2007 est.)

Stock of direct foreign investment - abroad

$21.81 billion (31 December 2008 est.)
$19.39 billion (31 December 2007 est.)

Market value of publicly traded shares

$90.23 billion (31 December 2008)
$207.3 billion (31 December 2007)
$149.1 billion (31 December 2006)

Economic aid - recipient

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

Currency (code)

PLN

Currency (code)

zloty (PLN)

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

calendar year