Economic overview Poland, in 36 editions.

The economy, except for the agricultural sector, had followed the Soviet model of state ownership and control of the country's productive assets. About 75% of agricultural production had come from the private sector and the rest from state farms. The economy has presented a picture of moderate but slowing growth against a background of underlying weaknesses in technology and worker motivation. GNP increased between 3% and 6% annually during the period 1983-1986, but grew only 2.5% and 2.1% dropped by 2.0% in 1987 1989 and 1988, respectively. Output dropped by 1.5% a further 8.9% in 1989. 1990. The inflation rate, after falling sharply from the 1982 peak of 100% to 22% in 1986, rose to a galloping rate of 640% in 1989. 1989 and dropped back to 250% in 1990. Shortages of consumer goods and some food items worsened in 1988-89. Agricultural products and coal have remained are among the biggest hard currency earners, but manufactures are increasing in importance. Poland, with its hard currency debt of approximately $40 $48.5 billion, is severely limited in its ability to import much-needed hard currency goods. The sweeping political changes of 1989 disrupted normal economic channels and exacerbated shortages. In January 1990, the new Solidarity-led government adopted a cold turkey program for transforming Poland to a market economy. The government moved to eliminate subsidies, end artificially low free prices, make the zloty convertible, and, in general, halt the hyperinflation. These financial measures are were accompanied by plans to privatize the economy in stages. While inflation fell to an annual rate of 77.5% by November of 1990, the rise in unemployment and the drop in living standards have led to growing popular discontent and to a change of government in January 1991. The new government is continuing the previous government's economic program, while trying to speed privatization and to better cushion the populace from the dislocations associated with reform. Substantial outside aid will be needed if Poland is to make a successful transition in the 1990s.

Poland is undergoing a difficult transition from a Soviet-style economy -
with state ownership and control of productive assets - to a market economy.
On January 1, 1990, the new Solidarity-led government implemented shock
therapy by slashing subsidies, decontrolling prices, tightening the money
supply, stabilizing the foreign exchange rate, lowering import barriers, and
restraining state sector wages. As a result, consumer goods shortages and
lines disappeared, and inflation fell from 640% in 1989 to 60% 44% in 1991. 1992.
Western governments, which hold two-thirds of Poland's $48 billion external
debt, pledged in 1991 to forgive half of Poland's official debt by 1994, and 1994. The
the private sector grew, accounting accounted for 22% 29% of industrial production and 40%
nearly half of
nonagricultural output by 1991. in 1992. Production fell in state enterprises,
however, and the unemployment rate climbed steadily from virtually nothing
in 1989 to 11.4% 13.6% in December 1991. 1992. Poland fell out of compliance with its
IMF program by mid-1991, and talks with commercial creditors stalled. The
increase in unemployment and the decline in living standards led to popular strikes
discontent in the coal, auto, copper, and a change railway sectors in government 1992. Large state
enterprises in January 1991 the coal, steel, and again in December. defense sectors plan to halve employment
The new over the next decade, and the government has promised selective industrial intervention, some expects unemployment to reach 3
relaxation million (16%) in monetary policy, and an improved social safety net, 1993. A shortfall in tax revenues caused the budget deficit
to reach 6% of GDP in 1992, but will industrial production began a slow, uneven
be constrained by upturn. In 1993, the decline in output government will struggle to win legislative approval
for faster privatization and to keep the growing budget deficit. deficit within IMF-approved
limits.

Poland is continuing continues to make good progress in the difficult
transition to a market economy that
began on 1 January 1990, when the
new democratic government instituted
"shock therapy" by decontrolling
prices, slashing subsidies, and
drastically reducing import barriers. The economy contracted sharply
Real GDP fell sharply in 1990 and 1991, but in 1992 real GDP grew 1% despite Poland became the
first country in the region to resume economic growth with a severe 2.6%
drought. Real GDP expanded about 4% increase. Growth increased to 3.8% in 1993, 1993 and 5.5% in 1994 - the
highest rate in
Europe except for Albania. About half All of GDP now comes from the growth since
1991 has come from the booming private sector sector, which now accounts for
at least 55% of GDP, even though privatization of the large state-owned
enterprises is proceeding slowly and most industry remains in state
hands. The pattern of industrial Industrial production is changing rapidly; increased 12% in 1994 - led by 50% jumps
in the output of textiles motor vehicles, radios and construction materials televisions, and pulp and
paper - and is now well above the 1990
levels, while output of basic metals remains depressed. level. Inflation,
which had exceeded 50% monthly
approached 1,200% annually in late 1989, early 1990, was down to about 37% for 30% in
all of 1993, 1994, as the government held the budget deficit below 3% to 1.5% of
GDP. Unemployment After
five years of steady increases, unemployment has risen steadily, however, to leveled off at about 16%.
16% nationwide, although it approaches 30% in some regions. The trade
deficit is also a problem, was sharply reduced in part 1994, due mainly to recession in increased exports
to Western Europe,
Poland's main customer. The new leftist government
elected in September 1993 gets generally good marks from foreign
is politically to the left of observers for its predecessor management of the budget but is continuing the often criticized for
reform process. not moving faster on privatization.

In 1995, Poland continues continued to make good progress
in the difficult
transition to a market economy that began on 1
January 1990, when the
new democratic government instituted "shock
therapy" by decontrolling
prices, slashing subsidies, and
drastically reducing import barriers.
Real Although real GDP fell sharply
in 1990 and 1991, but in 1992 Poland became the
first country in the
region to resume economic growth with a 2.6%
increase. Growth increased
advanced to 3.8% in 1993 and 5.5% 1993, 5.2% in 1994 - the
highest rate 1994, and 6.5% in Europe except for Albania. All 1995. Most of
the growth since
1991 has had come from the booming private sector,
which now accounts for
at least 55% about 60% of GDP, even though privatization of due in large part to the state-owned
creation of new private firms. The slow pace of privatization picked
up somewhat in 1995, as 512 smaller state enterprises is proceeding slowly and most were
transferred to private National Investment Funds under the Mass
Privatization Program, but large-scale industry remains largely in state
state hands. Industrial production increased 12% 10.2% in 1994 - led by 50% jumps 1995,
following a 13.2% rise in 1994, yet remains about 13% below the output of motor vehicles, radios and televisions, and pulp and 1989
paper - and is now well above the 1990 level. Inflation, which had
approached 1,200% annually in early
1990, was down fell to about 30% 21.6% in
1994, December 1995, as the government held the
1995 budget deficit to 1.5% less than 3% of GDP. After peaking at 16.9%
five years of steady increases, in July 1994, unemployment has leveled off at about gradually fell to 14.9% in December 1995
16% nationwide, - although it the rate still approaches 30% in some regions. The trade
and current account balances officially are in deficit was sharply reduced but in 1994, due mainly to increased exports fact
both have comfortable surpluses because of large, unrecorded sales
to Western Europe, Poland's main customer. The leftist cross-border visitors. Prospects for 1996 are good, with the
government promising to push privatization and social welfare
elected in September 1993 gets generally good marks from foreign reform. Economic growth should remain above 5%, with inflation
observers for dropping below 20% by yearend 1996 and unemployment continuing its management of the budget but is often criticized
slow decline. As for external debt, the burden was sharply reduced
not moving faster on privatization. by reschedulings and write-offs of both private and official debt
during 1991-94.

In 1995, 1996, Poland continued to make good progress
in
the difficult transition to a market economy that economy. The transition began on 1
1 January 1990, when the new democratic government instituted "shock shock
therapy" therapy by decontrolling prices, slashing subsidies, and
drastically
reducing import barriers. Although real GDP fell sharply
in 1990 and
1991, in 1992 Poland became the first country in the
region to resume
economic growth with a 2.6% increase. Growth
advanced to 3.8% in 1993,
5.2% in 1994, and 6.5% in 1995. 1995, and 6.0% in 1996. Most of
the growth since
1991 had has come from the booming private sector,
which now accounts for about
more than 60% of GDP, due in large part attributable mostly to the
creation of new private firms. The slow pace of privatization picked
up somewhat in 1995, as 512 smaller state enterprises were
transferred to private National Investment Funds under the Mass
Privatization Program, but large-scale firms. Large-scale industry still remains largely in
state hands. Industrial production increased 10.2% in 1995,
following a 13.2% rise in 1994, yet remains about 13% below the 1989
level. Inflation, which had approached 1,200% annually in early
1990, fell to 21.6% in December 1995, as the government held the
1995 budget deficit to less than 3% of GDP. After peaking at 16.9%
in July 1994, unemployment gradually fell to 14.9% in December 1995
- although the rate still approaches 30% in some regions. hands. The trade
and current account balances officially are in
deficit but in fact
both have comfortable surpluses because of large,
unrecorded sales
to cross-border visitors. Prospects for 1996 are good, with the
The government promising has promised
to push extend privatization and social welfare
reform. Economic growth should remain above 5%, with inflation
dropping below 20% by yearend 1996 reform and unemployment continuing its to maintain
slow decline. fiscal and monetary discipline. As for external debt, the burden was
sharply reduced
by reschedulings and write-offs of both private and
official debt
during 1991-94. 1991-95.

Poland today stands out as one of the most
successful and open transition economies. The privatization of small
and medium state-owned companies and a liberal law on establishing new
new firms marked the rapid development of a private sector now responsible
responsible for at least two-thirds 70% of economic activity. In contrast to the
vibrant
expansion of private non-farm activity, the large agriculture
component remains handicapped by structural problems, surplus labor,
inefficient small farms, and lack of investment. The government's
determination to enter the EU as soon as possible affects all aspects
aspects of its economic policies. Improving Poland's worsening
current account
deficit also is a priority. To date, the government
has resisted
pressure for protectionist solutions and continues to
support regional
free trade initiatives. The government export
strategy emphasizes a
more aggressive export assistance program.
Warsaw continues to hold
the budget deficit to less than 2% of GDP.
Further progress on public
finance depends mainly on comprehensive
reform of the social welfare
system and privatization of Poland's
remaining state sector.
Restructuring and privatization of
"sensitive sectors" (e.g., coal,
steel) steel, and telecommunications) has been delayed.
begun. Long-awaited privatizations in aviation,
energy, aviation and telecommunications energy are
scheduled for 1998. 1999.

Poland today stands out as one of the most
successful and open transition economies. The privatization of small
and medium state-owned companies and a liberal law on establishing
new firms marked the rapid development of a private sector now
responsible for 70% of economic activity. In contrast to the vibrant
expansion of private non-farm activity, the large agriculture
component remains handicapped by structural problems, surplus labor,
inefficient small farms, and lack of investment. The government's
determination to enter the EU as soon as possible affects all
most aspects of its economic policies. Improving Poland's worsening
current account deficit also is a priority. To date, the government
has resisted pressure for protectionist solutions and continues to
support regional free trade initiatives. The government export
strategy emphasizes a more aggressive export assistance program.
tightening monetary policy, now focused on inflation targeting, also are priorities. Warsaw continues to hold the budget deficit to less than around 2% of GDP.
Structural reforms advanced in pensions, health care, and public administration in 1999, but resulted in larger than anticipated fiscal pressures. Further progress on public finance depends mainly on comprehensive
reform of the social welfare system and privatization of Poland's
remaining state sector. Restructuring and privatization of
"sensitive sectors" (e.g., coal, steel, coal and telecommunications) steel) has
begun. Long-awaited privatizations begun, but work remains to be done. Growth in aviation and energy are
scheduled for 2000 should be moderately above 1999.

Poland has steadfastly pursued a policy of liberalizing the economy and today stands out as one of the most successful and open transition economies. GDP growth has been strong and steady since 1992 - the best performance in the region. The privatization of small and medium state-owned companies and a liberal law on establishing new firms marked has allowed for the rapid development of a private sector now responsible for 70% of economic activity. In contrast to the vibrant expansion of private non-farm activity, the sector. In contrast, Poland's large agriculture component agricultural sector remains handicapped by structural problems, surplus labor, inefficient small farms, and lack of investment. The government's determination to enter the EU as soon as possible affects most aspects of its economic policies. Improving Poland's worsening current account deficit Restructuring and tightening monetary policy, now focused on inflation targeting, also are priorities. Warsaw continues to hold the budget deficit to around 2% privatization of GDP. "sensitive sectors" (e.g., coal, steel, railroads, and energy) has begun. Structural reforms advanced in pensions, health care, education, the pension system, and public state administration in 1999, but have resulted in larger than anticipated expected fiscal pressures. Further progress on in public finance depends mainly on privatization of Poland's remaining state sector. Restructuring and privatization The government's determination to enter the EU as soon as possible affects most aspects of "sensitive sectors" (e.g., coal its economic policies. Improving Poland's outsized current account deficit and steel) has begun, but work remains to be done. Growth reining in 2000 should be moderately above 1999. inflation are priorities. Warsaw leads the region in foreign investment and needs a continued large inflow.

Poland has steadfastly pursued a policy of liberalizing the economy and today stands out as one of the most successful and open transition economies. GDP growth has had been strong and steady since 1992 - in 1993-2000 but fell back in 2001-02 with slowdowns in domestic investment and consumption and the best performance persistent weakness in the region. European economy. The privatization of small and medium state-owned companies and a liberal law on establishing new firms has have allowed for the rapid vibrant development of a vibrant private business sector. In contrast, Poland's large agricultural sector remains handicapped by structural problems, surplus labor, inefficient small farms, and lack of investment. Restructuring and privatization of "sensitive sectors" (e.g., coal, steel, railroads, and energy) has have begun. Structural reforms in health care, education, the pension system, and state administration have resulted in larger than expected fiscal pressures. Further progress in public finance depends mainly on privatization of Poland's remaining state sector. The government's determination to enter the EU as soon as possible affects most aspects of its economic policies. Improving Poland's outsized current account foreign trade deficit and reining in inflation containing the internal budget deficit are top priorities. Warsaw leads the region in foreign investment and needs a continued large inflow.

Poland has steadfastly pursued a policy of liberalizing economic liberalization throughout the economy 1990s and today stands out as one of the most successful and open a success story among transition economies. GDP growth had been strong and steady in 1993-2000 but fell back in 2001-02 with slowdowns in domestic investment and consumption and the persistent weakness in the European economy. Even so, much remains to be done. The privatization of small and medium state-owned companies and a liberal law on establishing new firms have allowed for has encouraged the vibrant development of a the private business sector. In contrast, sector, but legal and bureaucratic obstacles alongside persistent corruption are hampering its further development. Poland's large agricultural sector remains handicapped by structural problems, surplus labor, inefficient small farms, and lack of investment. Restructuring and privatization of "sensitive sectors" (e.g., coal, steel, railroads, and energy) energy), while recently initiated, have begun. stalled due to a lack of political will on the part of the government. Structural reforms in health care, education, the pension system, and state administration have resulted in larger than expected fiscal pressures. Further progress in public finance depends mainly on privatization of Poland's remaining state sector. sector, the reduction of state employment, and an overhaul of the tax code to incorporate the growing gray economy and farmers most of whom pay no tax. The government's determination to enter the EU as soon as possible affects has shaped most aspects of its economic policies. policy and new legislation; in June 2003, 77% of the voters approved membership, now scheduled for May 2004. Improving Poland's outsized foreign trade deficit export competitiveness and containing the internal budget deficit are top priorities. Warsaw leads Due to political uncertainty, the region zloty has recently depreciated in foreign investment relation to the euro and needs a continued large inflow. the dollar while currencies of the other euro-zone aspirants have been appreciating. GDP per capita equals that of the 3 Baltic states.

Poland has steadfastly pursued a policy of economic liberalization throughout the 1990s and today stands out as a success story among transition economies. Even so, much remains to be done. The privatization of small and medium state-owned companies and a liberal law on establishing new firms has encouraged the development of the private business sector, but legal and bureaucratic obstacles alongside persistent corruption are hampering its further development. Poland's agricultural sector remains handicapped by structural problems, surplus labor, inefficient small farms, and lack of investment. Restructuring and privatization of "sensitive sectors" (e.g., coal, steel, railroads, and energy), while recently initiated, have stalled due to a lack of political will on the part of the government. Structural reforms stalled. Reforms in health care, education, the pension system, and state administration have resulted in larger than expected fiscal pressures. Further progress in public finance depends mainly on privatization of Poland's remaining state sector, the reduction of state employment, and an overhaul of the tax code to incorporate the growing gray economy and farmers farmers, most of whom pay no tax. The government's determination to enter the EU has shaped most aspects of its economic policy and new legislation; in June a nationwide referendum in November 2003, 77% of the voters approved membership, voted in favor of Poland's EU accession, now scheduled for May 2004. Improving Poland's export competitiveness and containing the internal budget deficit are top priorities. Due to political uncertainty, the zloty has recently depreciated in relation to the euro and the dollar euro, while currencies of the other euro-zone aspirants have been appreciating. GDP per capita equals that of the 3 three Baltic states.

Poland has steadfastly pursued a policy of economic liberalization throughout the 1990s and today stands out as a success story among transition economies. Even so, much remains to be done. done, especially in bringing down unemployment. The privatization of small and medium medium-sized state-owned companies and a liberal law on establishing new firms has encouraged the development of the private business sector, but legal and bureaucratic obstacles alongside persistent corruption are hampering its further development. Poland's agricultural sector remains handicapped by structural problems, surplus labor, inefficient small farms, and lack of investment. Restructuring and privatization of "sensitive sectors" (e.g., coal, steel, railroads, and energy), while recently initiated, have stalled. Reforms in health care, education, the pension system, and state administration have resulted in larger than expected larger-than-expected fiscal pressures. Further progress in public finance depends mainly on privatization of Poland's remaining state sector, the reduction of reducing losses in Polish state employment, enterprises, restraining entitlements, and an overhaul of overhauling the tax code to incorporate the growing gray economy and farmers, most of whom pay no tax. The government's determination to enter the EU government has shaped most aspects introduced a package of its economic policy social and new legislation; in a nationwide referendum administrative spending cuts to reduce public spending by about $17 billion through 2007. Additional reductions are under discussion in November 2003, 77% of the voters voted legislature but could be trumped by election-year politics in favor of Poland's 2005. Poland joined the EU accession, now scheduled for in May 2004. Improving Poland's export competitiveness 2004, and containing the internal budget deficit are top priorities. Due surging exports to political uncertainty, the zloty has recently depreciated in relation EU contributed to the euro, while currencies of Poland's strong growth in 2004, though its competitiveness could be threatened by the other euro-zone aspirants have been appreciating. zloty's appreciation. GDP per capita roughly equals that of the three Baltic states. Poland stands to benefit from nearly $13.5 billion in EU funds, available through 2006. Farmers have already begun to reap the rewards of membership via higher food prices and EU agricultural subsidies.

Poland has steadfastly pursued a policy of economic liberalization throughout the 1990s and today stands out as a success story among transition economies. Even so, much remains to be done, especially in bringing down unemployment. the unemployment rate - currently the highest in the EU. The privatization of small small- and medium-sized state-owned companies and a liberal law on establishing new firms has encouraged the development of the private business sector, but legal and bureaucratic obstacles alongside persistent corruption are hampering its further development. Poland's agricultural sector remains handicapped by surplus labor, inefficient small farms, and lack of investment. Restructuring and privatization of "sensitive sectors" (e.g., coal, steel, railroads, and energy), while recently initiated, have stalled. Reforms in health care, education, the pension system, and state administration have resulted in larger-than-expected fiscal pressures. Further progress in public finance depends mainly on reducing losses in Polish state enterprises, restraining entitlements, and overhauling the tax code to incorporate the growing gray economy and farmers, most of whom pay no tax. The previous Socialist-led government has introduced a package of social and administrative spending cuts to reduce public spending by about $17 billion through 2007. Additional reductions are under discussion in the legislature 2007, but could be full implementation of the plan was trumped by election-year politics in 2005. The right-wing Law and Justice party won parliamentary elections in September, and Lech KACZYNSKI won the presidential election in October 2005, running on a state-interventionist fiscal and monetary platform. Poland joined the EU in May 2004, and surging exports to the EU contributed to Poland's strong growth in 2004, though its competitiveness could be threatened by the zloty's appreciation. GDP per capita roughly equals that of the three Baltic states. Poland stands to benefit from nearly $13.5 $23.2 billion in EU funds, available through 2006. Farmers have already begun to reap the rewards of membership via booming exports, higher food prices prices, and EU agricultural subsidies.

Poland has steadfastly pursued a policy of economic liberalization throughout the 1990s since 1990 and today stands out as a success story among transition economies. Even so, much remains to be done, especially In 2006, GDP grew 5.3%, based on rising private consumption, a 16.7% jump in bringing down investment, and burgeoning exports. Poland today has a thriving private sector which created more than 300,000 new jobs during 2006 alone. GDP per capita roughly equals that of the unemployment rate three Baltic states. Consumer price inflation - currently at 1.3% in 2006 - remains among the highest lowest in the EU. The privatization of small- and medium-sized state-owned companies Since 2004, EU membership and a liberal law on establishing new firms access to EU structural funds has encouraged provided a major boost to the development economy. Inflows of the private business sector, but legal direct foreign investment exceeded $10 billion in 2006 alone - and more than $100 billion since 1990 - with major investments being announced by foreign firms in computer, consumer electronics, and automobile component production. In early 2006, Poland reached agreement with its EU partners that will permit it to benefit from EU funds totaling nearly $80 billion during 2007-13. Since 2002, even though the zloty appreciated 30%, Poland's exports more than doubled. Despite Poland's successes, more remains to be done. Unemployment, which stood at 15% in December 2006, is still the highest in the EU. An inefficient commercial court system, a rigid labor code, bureaucratic obstacles alongside red tape, and persistent corruption are hampering its further development. Poland's agricultural keep the private sector remains from performing to its potential. Agriculture is handicapped by surplus labor, inefficient small farms, farms and lack of inadequate investment. Restructuring and privatization of the remaining state-owned industries, especially "sensitive sectors" (e.g., such as coal, steel, oil refining, railroads, and energy), while recently initiated, energy transmission and generation, have stalled. stalled due to concerns about loss of control over critical national assets and lay-offs. Reforms in health care, education, the pension system, and state administration have resulted failed so far to reduce the government budget deficit, which was roughly 2.7 percent of GDP in larger-than-expected fiscal pressures. 2006. Further progress in public finance depends mainly on reducing losses in Polish state enterprises, restraining entitlements, and overhauling the tax code to incorporate the growing gray economy and farmers, most of whom pay no tax. code. The previous Socialist-led government introduced a package of social and administrative spending cuts to reduce public spending by about $17 billion through 2007, but full implementation of the plan was trumped by election-year politics in 2005. The right-wing Law and Justice party won parliamentary elections in September, September 2005, and Lech KACZYNSKI won the presidential election in October 2005, October, running on a state-interventionist fiscal and monetary platform. Poland joined the EU in May 2004, and surging exports to The new government has proceeded cautiously on economic matters, however, retaining, for example, the EU contributed to Poland's strong growth in 2004, though its competitiveness could be threatened corporate income tax cuts initiated by the zloty's appreciation. GDP per capita roughly equals that of the three Baltic states. Poland stands to benefit from nearly $23.2 billion in EU funds, available through 2006. Farmers have already begun previous administration and indicating its intention to reap reduce the rewards of membership via booming exports, higher food prices, and EU agricultural subsidies. top personal income tax rate.

Poland has pursued a policy of economic liberalization since 1990 and today stands out as a success story among transition economies. In 2007, 2008, GDP grew an estimated 6.5%, 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 12.8% 9.7% in 2007, 2008, 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 2008 inflation reached 4.1% on a year-over-year basis, or higher 4.3%, more than the upper limit of the National Bank of Poland's target range. 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 Government's effort to hold the consolidated public sector budget deficit under 3.0% of GDP, a target which was achieved in 2007. 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. 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. However, The government, however, has moved slowly on major reforms. Pension and health-care bills passed through the government does not have legislature, but the necessary three-fifths majority needed legislature failed to override overturn a presidential veto, and thus may have to water down initiatives in order to garner enough support to pass its pro-business policies. veto.

Poland has pursued a policy of economic liberalization since 1990 and today stands out as a success story among transition economies. In 2008, Before 2009, GDP grew an estimated 4.8%, had grown about 5% annually, 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% fell rapidly to 6.4% in October 2008, it remains above but climbed back to 11.8% for the year 2010, exceeding the EU average. average by more than 2%. In 2008 inflation reached 4.3%, 4.2%, more than the upper limit of the National Bank of Poland's target range, but has been falling fell to 2.4% in 2010 due to global economic slowdown. Poland's economic performance could improve further 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 caused the consolidated public sector budget deficit under 3.0% to rise to 7.9% of GDP, a target which was achieved GDP in 2007-08. 2010. The PO/PSL coalition government government, which came to power in November 2007 2007, plans to further reduce the budget deficit with the aim of eventually adopting the euro by 2012. The new government in 2011 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. Pension and The legislature passed a law significantly limiting early retirement benefits. A health-care bills bill also passed through the legislature, but the legislature failed to overturn a presidential veto.

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 It is the only country in corporate investment, and EU funds inflows. the European Union to maintain positive GDP growth through the 2008-2009 economic downturn. 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, but climbed back to 11.8% for the year 2010, exceeding the EU average by more than 2%. In 2008 inflation Inflation reached 4.2%, more than a low of about 2.6% in 2010 due to the global economic slowdown but has since climbed and is expected to remain around 3%, and close to the upper limit of the National Bank of Poland's target range, but fell to 2.4% in 2010 due to global economic slowdown. rate. 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 caused the public sector budget deficit to rise to 7.9% of GDP in 2010. The PO/PSL coalition government, which came to power in November 2007, plans has planned to reduce the budget deficit in 2011 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, government has moved slowly on most major reforms. The legislature passed a law significantly limiting early retirement benefits. A health-care bill also passed through the legislature, reforms, but the legislature failed to overturn a presidential veto. has sped up privatization.

Poland has pursued a policy of economic liberalization since 1990 and today stands out as a success story among transition economies. It is Poland's economy was the only country in the European Union to maintain positive GDP growth avoid a recession through the 2008-2009 2008-09 economic downturn. GDP per capita is still much below the EU average, but is similar to that of the three Baltic states. Since 2004, Although 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, but climbed back to 11.8% for economy since 2004, GDP per capita remains significantly below the year 2010, exceeding EU everage while unemployment continues to exceed the EU average by more than 2%. Inflation reached a low average. The government of about 2.6% in 2010 due to Prime Minister Donald TUSK steered the global Polish economy through the economic slowdown but has since climbed downturn by skillfully managing public finances without stifling economic growth and is expected to remain around 3%, adopted controversial pension and close tax reforms to the upper limit of the National Bank of Poland's target rate. further shore up public finances. 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 caused the public sector budget deficit to rise to 7.9% of GDP in 2010. The PO/PSL coalition government, which came to power in November 2007, has planned to reduce the budget deficit in 2011 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 has moved slowly on most major reforms, but has sped up privatization.

Poland has pursued a policy of economic liberalization since 1990 and Poland's economy was the only country one in the European Union to avoid a recession through the 2008-09 economic downturn. Although EU membership and access to EU structural funds have provided a major boost to the economy since 2004, GDP per capita remains significantly below the EU everage average while unemployment continues to exceed the EU average. The government of Prime Minister Donald TUSK steered the Polish economy through the economic downturn by skillfully managing public finances without stifling economic growth and adopted controversial pension and tax reforms to further shore up public finances. While the Polish economy has performed well over the past five years, growth slowed in 2012, in part due to the ongoing economic difficulties in the euro zone. The key policy challenge is to provide support to the economy through monetary easing, while maintaining the pace of structural fiscal consolidation. 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, and a burdensome tax system, and persistent low-level corruption system keep the private sector from performing up to realizing its full potential.

Poland has pursued a policy of economic liberalization since 1990 and Poland's economy was the only one in the European Union EU to avoid a recession through the 2008-09 economic downturn. Although EU membership and access to EU structural funds have provided a major boost to the economy since 2004, GDP per capita remains significantly below the EU average while unemployment continues to exceed the EU average. The government of Prime Minister Donald TUSK steered the Polish economy through the economic downturn by skillfully managing public finances without stifling economic growth and adopted adopting controversial pension and tax reforms to further shore up public finances. While the Polish economy has performed well over the past five years, growth slowed in 2012, 2012 and 2013, in part due to the ongoing economic difficulties in the euro zone. The Short-term, the key policy challenge is to provide support will be to the economy through monetary easing, while maintaining consolidate debt and spending without stifling economic growth. Over the pace of structural fiscal consolidation. longer term, 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 infrastructure, business environment. An inefficient commercial court system, a environment, rigid labor code, commercial court system, government red tape, and a burdensome tax system keep the private sector from realizing its full potential. system.

Poland has pursued a policy of economic liberalization since 1990 and Poland's economy was the only one in the EU to avoid a recession through the 2008-09 economic downturn. Although EU membership and access to EU structural funds have provided a major boost to the economy since 2004, GDP per capita remains significantly below the EU average while average. The unemployment continues to exceed rate is now below the EU average. The government of Prime Minister Donald TUSK steered the Polish economy through the economic downturn by skillfully managing public finances and adopting controversial pension and tax reforms to further shore up public finances. While the Polish economy has performed well over the past five years, growth slowed in 2012 2013 and 2013, in part due to the ongoing economic difficulties picked back up in the euro zone. 2014. Short-term, the key policy challenge will be to consolidate debt and spending without stifling economic growth. Over the longer term, Poland's economic performance could improve if the country addresses 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. system, especially for entrepreneurs. Poland’s long-term challenges include diversifying Poland’s energy mix and sources of supply, as well as stemming the outflow of educated young Poles to other EU Member States, especially in light of a coming demographic contraction as the Solidarity-era baby boom generation ages.

Poland has pursued a policy of economic liberalization since 1990 and Poland's economy was the only one in the EU country to avoid a recession through the 2008-09 economic downturn. Although EU membership and access to EU structural funds have provided a major boost to the economy since 2004, GDP per capita remains significantly below the EU average. The average and the unemployment rate is now below the EU average.
The government of Prime Minister Donald TUSK steered the Polish economy through the economic downturn by skillfully managing public finances and adopting controversial pension and tax reforms to further shore up public finances. While the Polish economy has performed well over the past five years, growth slowed in 2013 and picked back up in 2014. Short-term, the key policy challenge will be to consolidate debt 2014-15. Poland’s new center-right Law and spending without stifling economic growth. Over the longer term, Poland's Justice government plans to introduce expansionary economic performance could improve if policies to spur long-term growth, but social spending programs are expected to lead to increased deficit spending over the country addresses medium term.
Poland faces several 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. Poland’s Additional long-term challenges include diversifying Poland’s energy mix and sources of supply, strengthening investments in innovation, research, and development, and as well as stemming the outflow of educated young Poles to other EU Member States, member states, especially in light of a coming demographic contraction as due to emigration, persistently low fertility rates, and the aging of the Solidarity-era baby boom generation ages. generation.

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 since 1990 and Poland's economy liberalization. During the 2008-09 economic slowdown Poland was the only EU country to avoid a recession through recession, in part because of the 2008-09 economic downturn. Although EU membership and access to EU structural funds have provided government’s loose fiscal policy combined with a major boost commitment to rein in spending in the economy medium-term. However, since 2004, GDP per capita remains significantly below the EU average and the unemployment rate is now below the EU average.
The government 2015 Warsaw’s prioritization of Prime Minister Donald TUSK steered the Polish economy through the economic downturn by skillfully managing public finances and adopting controversial pension and tax reforms spending on social welfare programs has prompted investors to further shore up public finances. While decrease Poland’s economic growth projections for the next few years.
The Polish economy has performed well over during the past five years, 2014-16 period, with the real GDP growth slowed rate exceeding 3%, in 2013 and picked back up part because of the government’s fiscal prudence. Poland’s economic growth in 2014-15. 2017 is projected by some credit rating agencies to slow, however, because of Poland’s new center-right Law government’s increase in social spending since 2015, including the provision of cash transfers for low income families, families with more than one child, and Justice the reduction of the retirement age which will take effect in October 2017. The government plans has tried to introduce expansionary economic policies new taxes and boost tax compliance to spur long-term growth, but offset the costs of the social spending programs are expected to lead to increased deficit spending over and relieve upward pressure on the medium term. budget deficit. Some credit ratings agencies estimate that Poland will exceed the EU’s 3%-of-GDP limit on budget deficits, possibly impacting its access to future EU funds.
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 and sources of supply, mix, strengthening investments in innovation, research, and development, and 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.

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. However, since 2015 Warsaw’s prioritization medium-term Poland is the largest recipient of spending on social welfare programs has prompted investors to decrease Poland’s economic growth projections for EU development funds and their cyclical allocation can significantly impact the next few years.
rate of economic growth. The Polish economy performed well during the 2014-16 2014-17 period, with the real GDP growth rate generally exceeding 3%, in part because of the government’s fiscal prudence. Poland’s economic growth in 2017 is projected by some credit rating agencies to slow, however, because of Poland’s government’s increase 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 the provision of cash transfers for low income families, families with more than one child, banking and insurance, energy, and healthcare, that have dampened investor sentiment and has increased the reduction government’s ownership of some firms. The government reduced the retirement age which will take effect in October 2017. The government 2016 and has tried to introduce had mixed success in introducing new taxes and boost boosting tax compliance to offset the increased costs of the social spending programs and relieve upward pressure on the budget deficit. Some credit ratings agencies estimate that Poland will exceed 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.

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.

high-income, diversified, EU-member economy; significant growth in GDP, trade, and investment since joining EU in 2004; rebounding from slowdown triggered by inflation private consumption and fall in consumer demand; strong foreign investment supported by EU structural funds; income tax reform EU-funded public investments driving GDP growth; increased social spending, flooding recovery costs, and defense spending have added to public debt