Economy - overview:
Poland has steadfastly pursued a policy of economic liberalization
since 1990 and today stands out as a success story among transition
economies. Even so, much remains to be done, especially in bringing
down the unemployment rate - still the highest in the EU despite
recent improvement. The privatization of small- and medium-sized
state-owned companies and a liberal law on establishing new firms
has encouraged the development of the private business sector, but
legal and bureaucratic obstacles alongside persistent corruption are
hampering its further development. Poland's agricultural sector
remains handicapped by surplus labor, inefficient small farms, and
lack of investment. Restructuring and privatization of "sensitive
sectors" (e.g., coal, steel, railroads, and energy), while recently
initiated, have stalled. Reforms in health care, education, the
pension system, and state administration have resulted in
larger-than-expected fiscal pressures. Further progress in public
finance depends mainly on reducing losses in Polish state
enterprises, restraining entitlements, and overhauling the tax code
to incorporate the growing gray economy and farmers, most of whom
pay no tax. The previous Socialist-led government introduced a
package of social and administrative spending cuts to reduce public
spending by about $17 billion through 2007, but full implementation
of the plan was trumped by election-year politics in 2005. The
right-wing Law and Justice party won parliamentary elections in
September, and Lech KACZYNSKI won the presidential election in
October 2005, running on a state-interventionist fiscal and monetary
platform. Poland joined the EU in May 2004, and surging exports to
the EU contributed to Poland's strong growth in 2004, though its
competitiveness could be threatened by the zloty's appreciation. GDP
per capita roughly equals that of the three Baltic states. Poland
benefited from nearly $23.2 billion in EU funds, which were
available through 2006. Farmers have already begun to reap the
rewards of membership via booming exports, higher food prices, and
EU agricultural subsidies.
GDP (purchasing power parity):
$542.6 billion (2006 est.)
GDP (official exchange rate):
$265.4 billion (2006 est.)
GDP - real growth rate:
5.3% (2006 est.)
GDP - per capita (PPP):
$14,100 (2006 est.)
GDP - composition by sector: agriculture: 4.8% industry: 31.2% services: 64% (2006 est.)
Labor force: 17.26 million (2006 est.)
Labor force - by occupation: agriculture: 16.1% industry: 29% services: 54.9% (2002)
Unemployment rate:
14.9% (November 2006 est.)
Population below poverty line:
17% (2003 est.)