Overview: Poland is continuing the difficult transition to a market economy that began on 1 January 1990, when the new democratic government instituted "shock therapy" by decontrolling prices, slashing subsidies, and drastically reducing import barriers. The economy contracted sharply in 1990 and 1991, but in 1992 real GDP grew 1% despite a severe drought. Real GDP expanded about 4% in 1993, the highest rate in Europe except for Albania. About half of GDP now comes from the private sector even though privatization of the large state-owned enterprises is proceeding slowly and most industry remains in state hands. The pattern of industrial production is changing rapidly; output of textiles and construction materials is well above 1990 levels, while output of basic metals remains depressed. Inflation, which had exceeded 50% monthly in late 1989, was down to about 37% for all of 1993, as the government held the budget deficit below 3% of GDP. Unemployment has risen steadily, however, to about 16%. The trade deficit is also a problem, in part due to recession in Western Europe, Poland's main customer. The new government elected in September 1993 is politically to the left of its predecessor but is continuing the reform process.

National product: GDP - purchasing power equivalent - $180.4 billion (1993 est.)

National product real growth rate: 4.1% (1993 est.)

National product per capita: $4,680 (1993 est.)

Inflation rate (consumer prices): 37% (1993)

Unemployment rate: 15.7% (December 1993)

Budget:
revenues: $24.3 billion
expenditures: $27.1 billion, including capital expenditures of $1.5 billion (1993 est.)

Exports: $13.5 billion (f.o.b., 1993 est.)
commodities: machinery 24%, metals 17%, chemicals 12%, fuels and power 11%, food 10% (1992)
partners: Germany 31.4%, Netherlands 6.0%, Italy 5.6%, Russia 5.5% (1992)

Imports: $15.6 billion (f.o.b., 1993 est.)
commodities: fuels and power 17%, machinery 36%, chemicals 17%, food 8% (1992)
partners: Germany 23.9%, Russia 8.5%, Italy 6.9%, UK 6.7% (1992)

External debt: $47 billion (1993); note - Poland's Western government creditors promised in 1991 to forgive 30% of Warsaw's $35 billion official debt immediately and to forgive another 20% in 1994; foreign banks agreed in early 1994 to forgive 45% of their $12 billion debt claim

Industrial production: growth rate 7% (1993)

Electricity:
capacity: 31,530,000 kW
production: 137 billion kWh
consumption per capita: 3,570 kWh (1992)

Industries: machine building, iron and steel, extractive industries, chemicals, shipbuilding, food processing, glass, beverages, textiles

Agriculture: accounts for 7% of GDP and a much larger share of labor force; 75% of output from private farms, 25% from state farms; productivity remains low by European standards; leading European producer of rye, rapeseed, and potatoes; wide variety of other crops and livestock; major exporter of pork products; normally self-sufficient in food

Illicit drugs: illicit producers of opium for domestic consumption and amphetamines for the international market; transshipment point for Asian and Latin American illicit drugs to Western Europe

Economic aid:
donor: bilateral aid to non-Communist less developed countries (1954-89), $2.2 billion
recipient: Western governments and institutions have pledged $8 billion in grants and loans since 1989, but most of the money has not been disbursed

Currency: 1 zloty (Zl) = 100 groszy
Exchange rates: zlotych (Zl) per US$1 - 21,080 (January 1994), 18,115 (1993), 13,626 (1992), 10,576 (1991), 9,500 (1990), 1,439.18 (1989)

Fiscal year: calendar year

NOTE: The information regarding Poland on this page is re-published from the 1995 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Poland Economy 1995 information contained here. All suggestions for corrections of any errors about Poland Economy 1995 should be addressed to the CIA.