Poland Economy 2008

Economy - overview:
Poland has steadfastly pursued a policy of economic liberalization since 1990 and today stands out as a success story among transition economies. In 2007, GDP grew 6.5%, based on rising private consumption, a jump in investment, and burgeoning exports. Poland today has a thriving private sector. GDP per capita roughly equals that of the three Baltic states. Consumer price inflation - at 2.1% in 2007 - remains among the lowest in the EU. Since 2004, EU membership and access to EU structural funds has provided a major boost to the economy. Despite Poland's successes, more remains to be done. Unemployment, which stood at nearly 13% in 2007, is still one of the highest in the EU. Rising wages and falling unemployment pose a risk to consumer price stability. An inefficient commercial court system, a rigid labor code, bureaucratic red tape, and persistent corruption keep the private sector from performing to its potential. Expensive health care, education, pension, and state administration systems present a challenge to lowering the government budget deficit, which was over 3% of GDP in 2007. The new government plans to reduce its budget deficit with the aim of eventually adopting the euro. The pro-business PO government aims to introduce business-friendly measures, lower public debt, lower personal and corporate tax rates, reduce public spending and increase privatization, but failed to gain enough seats to rule alone, and will likely 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):
$418.1 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.)

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.)

Population below poverty line:
17% (2003 est.)

Household income or consumption by percentage share:
lowest 10%: 3.1%
highest 10%: 27% (2002)

Distribution of family income - Gini index:
36 (2005)

Inflation rate (consumer prices):
2.1% (2007 est.)

Investment (gross fixed):
21.8% of GDP (2007 est.)

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

Public debt:
44.5% of GDP (2007 est.)

Agriculture - products:
potatoes, fruits, vegetables, wheat; poultry, eggs, pork, dairy

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 - exports:
51,780 bbl/day (2004)

Oil - imports:
480,300 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.)

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 - partners:
Germany 29%, Russia 9.6%, Italy 6.4%, Netherlands 5.7%, France 5.4% (2006)

Economic aid - recipient:
$1.524 billion in available EU structural adjustment and cohesion funds (2004)

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)

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