Flag description: two equal horizontal bands of white (top) and red; similar to the flags of Indonesia and Monaco which are red (top) and white
Economy
Economy—overview: Poland today stands out as one of the most successful and open transition economies. The privatization of small and medium state-owned companies and a liberal law on establishing new firms marked the rapid development of a private sector now responsible for 70% of economic activity. In contrast to the vibrant expansion of private non-farm activity, the large agriculture component remains handicapped by structural problems, surplus labor, inefficient small farms, and lack of investment. The government's determination to enter the EU as soon as possible affects all aspects of its economic policies. Improving Poland's worsening current account deficit also is a priority. To date, the government has resisted pressure for protectionist solutions and continues to support regional free trade initiatives. The government export strategy emphasizes a more aggressive export assistance program. Warsaw continues to hold the budget deficit to less than 2% of GDP. Further progress on public finance depends mainly on comprehensive reform of the social welfare system and privatization of Poland's remaining state sector. Restructuring and privatization of "sensitive sectors" (e.g., coal, steel, and telecommunications) has begun. Long-awaited privatizations in aviation and energy are scheduled for 1999.
GDP: purchasing power parity—$263 billion (1998 est.)
GDP—real growth rate: 5.6% (1998 est.)
GDP—per capita: purchasing power parity?$6,800 (1998 est.)
GDP—composition by sector: agriculture: 5.1% industry: 26.6% services: 68.3% (1997)
Population below poverty line: 23.8% (1993 est.)
Household income or consumption by percentage share:
lowest 10%: 4%
highest 10%: 22.1% (1992)
Inflation rate (consumer prices): 11% (1998 est.)