Polish Economy

Poland, country in central Europe with 38.1 million population , country which is the sixth biggest economy in the European Union and with the twentieth economy in the world. These positions contributed to accepting Poland to the G6- group of the greatest economies in the world.

Poland is included to the group of states of Centre and Eastern Europe which proceed process of intense economic transformations, replacing orderly- distributive systems with market economy. Political, social and economic changes on the turns of eightieth and ninetieth years, the collapse of many unprofitable units, the fall in the production a rise in unemployment and the high inflation were a stimulus for beginning of fundamental conversation on purpose cure of Polish economy. A degree of decentralization and privatization of the economy is an indicator of these transformations. In 1996 51,6% of the gross domestic product was produced by the private sector and only 34,3% through the public sector. Successes of Poland in this process were possible due to high relating to different socialist states, percentage of the private property in the economy: mainly in the farming and slight enterprise. In relatively short time a great degree of the privatization such departments of the national economy as farming, trade, average and small scale industry, motor transport- where the participation of the capital state is presently small. On the other hand mining industry and heavy industry, strategic for functioning of the Polish economy remains to great extent ownership Treasury and the public sector is producing at present about 25% GDP and it is comparable level to such countries like France or Norway. In Poland the most developed industries are coal industry, energy, petrochemical, metallurgical, machine, car, as well as electrical, machinery industry among others precise, electronic and electro technical, means of transport and food, textile, clothing. An output and processing of natural resources are very important.

2006 was very good for the Polish economy- high GDP on the level of the 6.2% at the high increase of consumption (5.1%). They attached investments which rise in 2006 by the 15.2% (gross expenditure on fixed assets). Accompanied it very high, in spite of high zloty, dynamics of rise in export (over 23% according to the National Bank of Poland, in euro). Country’s budget deficit amounted 25,063 billon zlotys towards planned 30,547 billion zlotys (82% of making deficit). Profit per capita amounted in 2005 nominally to 10858 dollars and after measuring purchasing power parity in 2007 16599 dollars. Foreign investors are judging Poland as the dynamic developing environment of investment. Prospects of the market development of services and modern technologies are for Poland very optimistic.

Poland advised itself inclusive on 1 May 2004 into EU structures and the fluid proceeding to functioning as part of the Market Internal. According to expectations before the accession, distinct fortification of Polish currency has followed. Mainly it happened on account of considerable inflow of capital of the wallet connected with the embankment of foreign exchange investors. Accession to EU well influenced activity of subjects with the foreign participation. Investors as the big benefit facilitating activity companies by the access of our country to the EU perceive the harmonization of the domestic law with common regulations and simplifying procedures connected with delivering goods to Euromarkets and abolishing customises. Fact that in spite of the accession to the EU labour costs remained relatively low is an additional advantage. Unemployment in 2006 in Poland took out 14,8%- it is a good message for investors it means competitive labour coast and the simple access to workers. Thanks to accession Poland gained access to relief founds, thanks to road and train infrastructure is growing. Through first one and a half year of accession Poland obtained almost a six billion euro grant from the EU. From the beginning of the period of economic transformation a downward trend of the inflation is being observed. At present prices in Poland aren’t rising. The year average inflation in 2005 reached 2,1% level. Great increase in investment, the export and the level of industrial production contributed to so good results. Faster rate of growth of real wages, improvement in the labour market and the low interest contributed to the stimulation of the consumption and investment in 2006- 2007. Since 2000 Polish export grows faster than the import. Into the effect the higher competitiveness of Polish goods (best quality at competitive prices) on the international arena and rise slowed down in the domestic consumerism. In Polish companies we are observing the decided growth of an interest in the export, many leaders are exporting not only to EU market but also to Russia and Asia countries. In 2006 polish export achieved almost 20% growth. Value of export amount to 342 300,0 millions zlotys. Polish companies are more courageously the encourage foreign customers. For the last five years value of the export doubled from 34,4 billion euro in 2000 to 71,4 billion euro in 2005. The commodity exchange was concentrated on turnovers with developed countries which participation in the export amounted 83,6%. In the same time business activity with the European Union determined about 77,2% whole export and 65,6% value of the Polish import. The most important trading Polish partner for many years is German, which participation in whole of polish export in 2005 amounted 28,2% and 24,7% in the import. Polish export is leaning on a few crucial branches(??) of industry, including commodities, cars, export of furniture, parts and car accessories, ships and products from plastic. Amongst Polish trade partners the highest dynamism of turnovers was in the export into Russia, Czech Republic, Great Britain, Ukraine and France, however in import from Russia, China and Belgium.