Poland: The Economy

The Economy

The policy of economic liberalisation pursued by the Polish authorities since the 1990s has paid dividends, with GDP growing an estimated 4.8% in 2008, although per capita, it still lags the EU average, coming in at USD17,300, or PLN 50,377 (2008 est.) Unemployment is high, although falling, with the figures for 2008 showing a 3% drop from the 2007 level of 12.8%.

EU membership, and consequent access to EU funds have also bolstered the economy, although as with the vast majority of the world's economies, the global economic crisis has had an adverse effect on the economic situation in Poland.

Delivering the conclusions of its Article IV consultation in June 2009, the International Monetary Fund observed that:

"Fiscal policy faces a difficult challenge of balancing short-term cyclical and medium-term sustainability considerations. On the one hand, allowing the deficit to reach 6% of GDP in 2009 would imply a deep fiscal adjustment in the coming years in order to reach the medium-term target. On the other hand, taking what would amount to pro-cyclical measures in order to slash the deficit would exacerbate the economic slowdown."

To help maintain the balance between the short and medium term, the IMF recommended two confidence boosting measures: firstly a revised timetable for adopting the Euro and secondly an overhauling of the fiscal policy framework.

Further information on Poland:

• Geography, Climate, Population and Culture
• Government and Legal Structure
• The Economy
• Company Forms
• Tax System
• Lowtax Opportunities
• Holding Companies
• Tax Treaties
• Internet and Telecommunications
• Banking System