The Economy of Poland

The economy of Poland has experienced one of the fastest developments in Central Europe. In 2007, its GDP based on PPP is worth $632 billion making it the 21st biggest economy in the world. Its annual growth is more than 6% due to its economic liberalization during the early 1990s. The Balcerowicz Plan, an economic restructuring initiated in 1990, eradicated many price controls and open the nation to international market. Poland received more than $50 billion worth of foreign direct investment since 1990. The private sector accounts for almost 70% of the country’s GDP. In 2005, its total working population is roughly 20 million. During the same year, almost 18% of the population is living below the poverty line.

Poland’s main industries include machine construction, iron and steel, chemicals, shipbuilding, iron and steel, food processing, beverages, textiles and glass. Its major export partners are Germany, Italy, France, UK, and Czech Republic while most imports are from Germany, Russia, China, and Italy. By the end of 2007, the services account for about 66% of the country’s GDP, industry – 32%, and agriculture – 3%.

Ernst & Young recently ranked Poland 7th in the world based on investment attractiveness. In a 2004 OECD, the Poles were regarded as one of the hardest working countries in Europe. Situated at the heart of continental Europe, Poland has a very strategic geographic location being part of the trans-European road system. In 2007, it recorded a GDP growth of 7% which is twice of the EU average. Poland is member of the WTO and joined the European Union in 2004.