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flag Poland Poland: Economic and Political Outline

Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

Economic Indicators

As a member of the European Union since 2004, Poland 's economic situation was strengthened with its integration into the community. The growth of the GDP, which was solid between 2006 and 2008, was affected by the international economic crisis, but Poland was the only European country that experienced a positive growth in 2009.  The growth of the GDP rose to 3.4% in 2010 and it should be stronger in 2011, supported by the domestic demand and investments, a typical characteristic of the economies that are on the catching-up stage. 

The slowdown of the economy and some fiscal measures have intensified the deficit.  The government has adopted a consolidating plan for public finance.  The objective is to reduce the public deficit from 7% in 2010 to 3% in 2013 and to keep the public debt under 55% of the GDP. The plan anticipates, among many issues, an increase of VAT and  the privatization and reduction of manpower in the public administration. 

The unemployment rate has risen during the crisis and it has reached 9.8% in 2010.

 
Main Indicators 2009201020112012 (e)2013 (e)
GDP (billions USD) 430.52469.40e531.76e556.52587.16
GDP (Constant Prices, Annual % Change) 1.63.8e3.8e3.03.4
GDP per Capita (USD) 11,29612,32313,96714,61715,422
General Government Balance (in % of GDP) -6.9-7.7e-6.1-3.7-3.4
General Government Gross Debt (in % of GDP) 50.955.056.0e56.456.5
Inflation Rate (%) 3.52.64.02.82.5
Unemployment Rate (% of the Labor Force) 8.29.69.49.29.0
Current Account (billions USD) -17.16-20.98-25.58e-28.44-30.40
Current Account (in % of GDP) -4.0-4.5-4.8-5.2-

Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data

Note: (e) Estimated Data

Main Sectors of Industry

In Poland, agriculture employs less than 20% of the active population and contributes to about 5% of the GDP. The country is generally self-sufficient as far as food is concerned. The main crops are rye, potatoes, beetroot, wheat and dairy products. The country also breeds pigs and sheep as livestock farming. Poland is relatively rich in natural resources and the main minerals produced are coal, sulfur, copper, lead and zinc. 

The manufacturing industry is the economy driver, contributing to about 30% of the GDP, whereas the tertiary sector represents about 65% of the GDP. The country's main industrial sectors are machine manufacturing, telecommunications, environment, transport, construction, industrial food processing and information technologies. The automobile industry has resisted well the effects of the economic crisis because this sector was placed at the niche at the right time when there was a high demand for small economic vehicles, which was exactly what Poland was producing.

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 13.3 31.1 55.6
Value Added (in % of GDP) 3.6 30.2 66.2
Value Added (Annual % Change) 3.0 4.4 4.5

Source: World Bank - Last Available Data.

 
 
Monetary Indicators 20062007200820092010
Polish Zloty (PLN) - Average Annual Exchange Rate For 1 USD 3.102.772.413.123.02

Source: World Bank - Last Available Data.

 
 
Learn more about Market Analysis about Poland on Globaltrade.net, the Directory for International Trade Services.
 

Indicator of Economic Freedom

Score:
64.1/100
Position:
Moderately free
World Rank:
64/179
Regional Rank:
30/42

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

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Foreign Trade in Figures

Poland is an open country to foreign investment.  During the 2007-2009 period, trade represented more than 80% of the GDP.  The geographical location of Poland gives it a strategic importance. As a fact, Poland is situated half-way between Paris and Moscow and between Stockholm and Budapest, and it has important ports which are connected to the North Sea through the Baltic Sea.  In addition, the country constitutes an excellent place for the export of merchandise to the former Soviet republics. 

Since Poland became a member of the European Union, its exports have increased more than 30%, in particular towards Russia (more than 75%).  After having experienced a strong decline on its trade balance during the crisis, the country has shown a very slight deficit on its trade balance in 2010, a trend that should continue during the next following years. 

The three main trade partners of the country are the European Union, Russia and China.

 
Foreign Trade Indicators 20062007200820092010
Imports of Goods (million USD) 126,989165,710208,804149,459173,753
Exports of Goods (million USD) 110,780140,147170,458136,503155,851
Imports of Services (million USD) 19,38723,65529,72423,57627,302
Exports of Services (million USD) 20,45728,60735,26328,59631,667
Imports of Goods and Services (Annual % Change) 17.313.78.0-14.37.5
Exports of Goods and Services (Annual % Change) 14.69.17.1-9.16.4
Imports of Goods and Services (in % of GDP) 42.243.643.938.731.4
Exports of Goods and Services (in % of GDP) 40.440.839.938.831.2
Trade Balance (million USD) 7,37219,06630,6597,61711,414
Trade Balance (Including Service) (million USD) 6,63614,30825,6532,8227,921
Foreign Trade (in % of GDP) 82.584.483.877.662.5

Source: WTO - World Trade Organization ; World Bank , Last Available Data

 

Main Partner Countries

Main Customers
(% of Exports)
2010
Germany 26.2%
France 6.8%
United Kingdom 6.3%
Czech Republic 6.0%
Italy 6.0%
See More Countries 48.8%
Main Suppliers
(% of Imports)
2010
Germany 21.9%
Russia 10.2%
China 9.4%
Italy 5.7%
France 4.3%
See More Countries 48.4%

Source: Comtrade, Last Available Data

 

Main Products

Main Exports
(% of Exports)
2010
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 5.5%
Parts and accessories for tractors, motor vehicles...Parts and accessories for tractors, motor vehicles for the transport of ten or more persons, motor cars and other motor vehicles principally designed for the transport of persons, motor vehicles for the transport of goods and special purpose motor vehicles of heading 8701 to 8705, n.e.s. 4.9%
Television receivers, whether or not incorporating...Television receivers, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus; video monitors and video projectors 4.6%
Seats, whether or not convertible into beds, and...Seats, whether or not convertible into beds, and parts thereof, n.e.s. (excl. medical, surgical, dental or veterinary of heading 9402) 2.6%
Automatic data processing machines and units...Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, n.e.s. 2.2%
See More Products 80.2%
Main Imports
(% of Imports)
2010
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 6.9%
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 3.1%
Parts and accessories for tractors, motor vehicles...Parts and accessories for tractors, motor vehicles for the transport of ten or more persons, motor cars and other motor vehicles principally designed for the transport of persons, motor vehicles for the transport of goods and special purpose motor vehicles of heading 8701 to 8705, n.e.s. 3.0%
Medicaments consisting of mixed or unmixed...Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses "incl. those in the form of transdermal administration" or in forms or packings for retail sale (excl. goods of heading 3002, 3005 or 3006) 2.7%
Parts suitable for use solely or principally with...Parts suitable for use solely or principally with transmission and reception apparatus for radio-telephony, radio-telegraphy, radio-broadcasting, television, television cameras, still image video cameras and other video camera recorders, radar apparatus, radio navigational aid apparatus or radio remote control apparatus, n.e.s. 2.3%
See More Products 81.9%

Source: Comtrade, Last Available Data

 
See More Products
More imports (Intracen Data)
More exports (Intracen Data)
 

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Sources of General Economic Information

Ministries
Ministry of Finance
Ministry of Foreign Affairs
Ministry of the Treasury
Statistical Office
Polish Office of Statistics
Central Bank
Polish Central Bank
Stock Exchange
Warsaw Stock Exchange
Search Engines
Wirtualna Polska
Sharelook.pl
Wroclaw
Economic Portals
Business in Poland information website
Onet

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Political Outline

Executive Power
The President is the head of State, elected by universal suffrage for a five year term. The Prime Minister is the head of the government. He is appointed by the President, an appointment which must be confirmed by the lower house of Parliament (as a general rule, he is the leader of the majority party or coalition), for a four year term of office. The Prime Minister holds the executive power, which includes the enforcement of the law and the management of the country's current affairs. The Council of Ministers is proposed by the Prime Minister and approved by the lower house before being appointed by the President.
Legislative Power
The legislative power in Poland is bi-cameral. Parliament is composed of the Senate (upper house, which has 100 seats and whose members are elected by a majority vote on a provincial basis, for a four year term of office) and of the Sejm (lower house, which has 460 seats and whose members are elected by a complex system of proportional representation, for a four year term of office). The President has the right to veto legislation passed by Parliament, but the latter can supplant him by a majority of two thirds of the Sejm.
Main Political Parties
Poland has a multi-party system and is generally governed by a coalition government. The country's main political parties are:
- The SLD (Democratic Left Alliance), a successor of the communist party, recast as a social democratic party;
- The PO (Civic Platform), a liberal conservative party;
- The PD (Democratic Party), a liberal social party;
- The UP (Labour Union), a social democratic party rooted in the anti-communist opposition;
- The PiS (Law and Justice), a right wing group based on a platform of law and order;
- The LPR (Polish Family League), an extreme right nationalist and Roman Catholic party (anti EU);
- The PSL (Polish Peasant Party), a group situated center left, representing the farming community;
- The SRP (Self defense of the Polish Republic), a left wing party with the Polish unions.
Current Political Leaders
President : Bronislaw Komorowski (President by interim until next elections)
Prime Minister: Donald TUSK (since 16 November 2007)
Deputy Prime Ministers: Waldemar PAWLAK (since 16 November 2007) and Grzegorz SCHETYNA (since 16 November 2007)
Next Election Dates
Presidential elections: October 2015
Sejm : October 2011
 

Indicator of Freedom of the Press

World Rank:
32/178
Evolution:
5 places up compared to 2009

Source: Worldwide Press Freedom Index 2010, Reporters Without Borders

 

Indicator of Political Freedom

Ranking:
Free
Political Freedom:
1/7
Civil Liberties:
1/7

Map of freedom 2010
Source: Freedom House

 

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Last Updates: January 2012