Po Economy - 2021

GEOGRAPHICAL NAMES 

Economic overview

Poland has the sixth-largest economy in the EU and has long had a reputation as a business-friendly country with largely sound macroeconomic policies. Since 1990, Poland has pursued a policy of economic liberalization. During the 2008-09 economic slowdown Poland was the only EU country to avoid a recession, in part because of the government’s loose fiscal policy combined with a commitment to rein in spending in the medium-term Poland is the largest recipient of EU development funds and their cyclical allocation can significantly impact the rate of economic growth.

The Polish economy performed well during the 2014-17 period, with the real GDP growth rate generally exceeding 3%, in part because of increases in government social spending that have helped to accelerate consumer-driven growth. However, since 2015, Poland has implemented new business restrictions and taxes on foreign-dominated economic sectors, including banking and insurance, energy, and healthcare, that have dampened investor sentiment and has increased the government’s ownership of some firms. The government reduced the retirement age in 2016 and has had mixed success in introducing new taxes and boosting tax compliance to offset the increased costs of social spending programs and relieve upward pressure on the budget deficit. Some credit ratings agencies estimate that Poland during the next few years is at risk of exceeding the EU’s 3%-of-GDP limit on budget deficits, possibly impacting its access to future EU funds. Poland’s economy is projected to perform well in the next few years in part because of an anticipated cyclical increase in the use of its EU development funds and continued, robust household spending.

Poland faces several systemic challenges, which include addressing some of the remaining deficiencies in its road and rail infrastructure, business environment, rigid labor code, commercial court system, government red tape, and burdensome tax system, especially for entrepreneurs. Additional long-term challenges include diversifying Poland’s energy mix, strengthening investments in innovation, research, and development, as well as stemming the outflow of educated young Poles to other EU member states, especially in light of a coming demographic contraction due to emigration, persistently low fertility rates, and the aging of the Solidarity-era baby boom generation.

Real GDP growth rate

4.55% (2019 est.)

5.36% (2018 est.)

4.83% (2017 est.)

Inflation rate (consumer prices)

2.1% (2019 est.)

1.7% (2018 est.)

2% (2017 est.)

Credit ratings

Fitch rating: A- (2007)

Moody's rating: A2 (2002)

Standard & Poors rating: A- (2018)

Real GDP (purchasing power parity)

$1,261,433,000,000 (2019 est.)

$1,206,640,000,000 (2018 est.)

$1,145,323,000,000 (2017 est.)

note: data are in 2010 dollars

GDP (official exchange rate)

$595.72 billion (2019 est.)

Real GDP per capita

$33,221 (2019 est.)

$31,775 (2018 est.)

$30,160 (2017 est.)

note: data are in 2010 dollars

Gross national saving

20.1% of GDP (2019 est.)

19.4% of GDP (2018 est.)

19.5% of GDP (2017 est.)

GDP - composition, by sector of origin

agriculture: 2.4% (2017 est.)

industry: 40.2% (2017 est.)

services: 57.4% (2017 est.)

GDP - composition, by end use

household consumption: 58.6% (2017 est.)

government consumption: 17.7% (2017 est.)

investment in fixed capital: 17.7% (2017 est.)

investment in inventories: 2% (2017 est.)

exports of goods and services: 54% (2017 est.)

imports of goods and services: -49.9% (2017 est.)

Ease of Doing Business Index scores

Overall score: 76.4 (2020)

Starting a Business score: 82.9 (2020)

Trading score: 100 (2020)

Enforcement score: 64.4 (2020)

Agricultural products

milk, sugar beet, wheat, potatoes, triticale, maize, barley, apples, mixed grains, rye

Industries

machine building, iron and steel, coal mining, chemicals, shipbuilding, food processing, glass, beverages, textiles

Industrial production growth rate

7.5% (2017 est.)

Labor force

9.561 million (2020 est.)

Labor force - by occupation

agriculture: 11.5%

industry: 30.4%

services: 57.6% (2015)

Unemployment rate

5.43% (2019 est.)

6.08% (2018 est.)

Population below poverty line

15.4% (2018 est.)

Gini Index coefficient - distribution of family income

29.7 (2017 est.)

33.7 (2008)

Household income or consumption by percentage share

lowest 10%: 3%

highest 10%: 23.9% (2015 est.)

Budget

revenues: 207.5 billion (2017 est.)

expenditures: 216.2 billion (2017 est.)

Taxes and other revenues

39.5% (of GDP) (2017 est.)

Budget surplus (+) or deficit (-)

-1.7% (of GDP) (2017 est.)

Public debt

50.6% of GDP (2017 est.)

54.2% of GDP (2016 est.)

note: data cover general government debt and include debt instruments issued (or owned) by government entities other than the treasury; the data include treasury debt held by foreign entities, the data include subnational entities, as well as intragovernmental debt; intragovernmental debt consists of treasury borrowings from surpluses in the social funds, such as for retirement, medical care, and unemployment; debt instruments for the social funds are not sold at public auctions

Fiscal year

calendar year

Current account balance

$2.92 billion (2019 est.)

-$7.52 billion (2018 est.)

Exports

$394.848 billion (2019 est.)

$375.525 billion (2018 est.)

$351.125 billion (2017 est.)

Exports - partners

Germany 27%, Czechia 6%, United Kingdom 6%, France 6%, Italy 5% (2019)

Exports - commodities

cars and vehicle parts, seats, furniture, computers, video displays (2019)

Imports

$364.993 billion (2019 est.)

$353.423 billion (2018 est.)

$328.919 billion (2017 est.)

Imports - partners

Germany 25%, China 10%, Italy 5%, Netherlands 5% (2019)

Imports - commodities

cars and vehicle parts, crude petroleum,  packaged medicines, broadcasting equipment, office machinery/parts (2019)

Reserves of foreign exchange and gold

$113.3 billion (31 December 2017 est.)

$114.4 billion (31 December 2016 est.)

Debt - external

$351.77 billion (2019 est.)

$373.721 billion (2018 est.)

Exchange rates

zlotych (PLN) per US dollar -

3.6684 (2020 est.)

3.8697 (2019 est.)

3.76615 (2018 est.)

3.7721 (2014 est.)

3.1538 (2013 est.)

NOTE: The information regarding Po on this page is re-published from the 2021 World Fact Book of the United States Central Intelligence Agency and other sources. No claims are made regarding the accuracy of Po 2021 information contained here. All suggestions for corrections of any errors about Po 2021 should be addressed to the CIA or the source cited on each page.