Poland

Capital: Warsaw

Local time:
It is %T:%M %A in Warsaw

GDP growth rate: 3.4% in 2013

FDI stock: 193 141 million USD in 2010

Economic trends

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 branches 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.

International trade

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.