Economic trends
As a member of the European Union since 2004, Poland 's economic situation was strengthened with its integration into the community. Less affected than other European countries by the international financial crisis, Poland grew by an estimated 4% in 2011, supported by domestic demand and investment. Due to the deteriorating economic situation in the eurozone, growth forecasts have been revised downwards for 2012, the most optimistic foressing a 2.5% growth.
The government's priority is to find a balance between measures to reform public finances and efforts to stimulate economic growth. Public debt, while still under the legal threshold, worsened in 2011. Prime Minister Donald Tusk has presented a plan to reduce public expenditure and recalibration the state administration in order to reduce the budget deficit to under 3% in 2012 and less than 1% in 2015. Tax reforms are foreseen (including the introduction of a new tax affecting the energy sector), and the age of retirement should be increased. In the unfavorable international environment, the organization of the Euro 2012 football cup has nevertheless stimulated the economy because of the many projects undertaken.
The unemployment rate rose during the global economic crisis of 2008/2009, reaching 9% in 201.
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 2008-2010 period, trade represented more than 80% of the GDP. The geographical location of Poland gives it a strategic importance. Poland is in fact 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%). The Polish trade balance, structurally a deficit, worsened in 2011, due to imports rising more quickly than exports.
The three main trade partners of the country are the European Union, Russia and China.
© Export Entreprises SA, all rights reserved.
Last updates: May 2012
