Information about economy of poland?

Economy - overview: Poland has steadfastly pursued a policy of economic liberalization since 1990 and today stands out as a success story among transition economies. In 2006, GDP grew 5.3%, based on rising private consumption, a 16.7% jump in investment, and burgeoning exports. Poland today has a thriving private sector which created more than 300,000 new jobs during 2006 alone. GDP per capita roughly equals that of the three Baltic states. Consumer price inflation - at 1.3% in 2006 - remains among the lowest in the EU. Since 2004, EU membership and access to EU structural funds has provided a major boost to the economy. Inflows of direct foreign investment exceeded $10 billion in 2006 alone - and more than $100 billion since 1990 - with major investments being announced by foreign firms in computer, consumer electronics, and automobile component production. In early 2006, Poland reached agreement with its EU partners that will permit it to benefit from EU funds totaling nearly $80 billion during 2007-13. Since 2002, even though the zloty appreciated 30%, Poland's exports more than doubled. Despite Poland's successes, more remains to be done. Unemployment, which stood at 15% in December 2006, is still the highest in the EU. An inefficient commercial court system, a rigid labor code, bureaucratic red tape, and persistent corruption keep the private sector from performing to its potential. Agriculture is handicapped by inefficient small farms and inadequate investment. Restructuring and privatization of the remaining state-owned industries, especially "sensitive sectors" such as coal, oil refining, railroads, and energy transmission and generation, have stalled due to concerns about loss of control over critical national assets and lay-offs. Reforms in health care, education, the pension system, and state administration have failed so far to reduce the government budget deficit, which was roughly 2.7 percent of GDP in 2006. Further progress in public finance depends mainly on reducing losses in Polish state enterprises, restraining entitlements, and overhauling the tax code. 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 2005, and Lech KACZYNSKI won the presidential election in October, running on a state-interventionist fiscal and monetary platform. The new government has proceeded cautiously on economic matters, however, retaining, for example, the corporate income tax cuts initiated by the previous administration and indicating its intention to reduce the top personal income tax rate.


GDP (purchasing power parity): $542.6 billion (2006 est.)


GDP (official exchange rate): $337 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.)


Household income or consumption by percentage share: lowest 10%: 3.1%


highest 10%: 26.7% (2002)


Distribution of family income - Gini index: 34.1 (2002)


Inflation rate (consumer prices): 1.3% (2006 est.)


Investment (gross fixed): 19.2% of GDP (2006 est.)


Budget: revenues: $62 billion


expenditures: $71.25 billion; including capital expenditures of $NA (2006 est.)


Public debt: 49% of GDP (2006 est.)


Agriculture - products: potatoes, fruits, vegetables, wheat; poultry, eggs, pork, dairy


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


Industrial production growth rate: 10.2% (2006 est.)


Electricity - production: 143.5 billion kWh (2004)


Electricity - production by source: fossil fuel: 98.1%


hydro: 1.5%


nuclear: 0%


other: 0.4% (2001)


Electricity - consumption: 124.1 billion kWh (2004)


Electricity - exports: 14.6 billion kWh (2004)


Electricity - imports: 5.3 billion kWh (2004)


Oil - production: 35,880 bbl/day (2004 est.)


Oil - consumption: 445,700 bbl/day (2004 est.)


Oil - exports: 53,000 bbl/day (2001)


Oil - imports: 413,700 bbl/day (2001)


Oil - proved reserves: 142.4 million bbl (December 2004)


Natural gas - production: 5.957 billion cu m (2004)


Natural gas - consumption: 15.67 billion cu m (2004 est.)


Natural gas - exports: 46 million cu m (2004 est.)


Natural gas - imports: 9.963 billion cu m (2004 est.)


Natural gas - proved reserves: 164.8 billion cu m (1 January 2005 est.)


Current account balance: $-4.548 billion (2006 est.)


Exports: $110.7 billion f.o.b. (2006 est.)


Exports - commodities: machinery and transport equipment 37.8%, intermediate manufactured goods 23.7%, miscellaneous manufactured goods 17.1%, food and live animals 7.6% (2003)


Exports - partners: Germany 28.2%, France 6.2%, Italy 6.1%, UK 5.6%, Czech Republic 4.6%, Russia 4.4%, Netherlands 4.2% (2005)


Imports: $113.2 billion f.o.b. (2006 est.)


Imports - commodities: machinery and transport equipment 38%, intermediate manufactured goods 21%, chemicals 14.8%, minerals, fuels, lubricants, and related materials 9.1% (2003)


Imports - partners: Germany 29.6%, Russia 8.7%, Italy 6.6%, Netherlands 5.9%, France 5.7% (2005)


Reserves of foreign exchange and gold: $49.69 billion (2006 est.)


Debt - external: $147.3 billion (30 June 2006 est.)


Economic aid - recipient: $13.9 billion in available EU structural adjustment and cohesion funds (2004-06)


Currency (code): zloty (PLN)


Currency code: PLN


Exchange rates: zlotych per US dollar - 3.1032 (2006), 3.2355 (2005), 3.6576 (2004), 3.8891 (2003), 4.08 (2002), note, zlotych is the plural form of zloty


Fiscal year: calendar year|||http://www.google.com ?|||Since the fall of communism, Poland has steadfastly pursued a policy of liberalising the economy and today stands out as a successful example of the transition from a state-directed economy to a primarily privately owned market economy.





The privatisation of small and medium state-owned companies and a liberal law on establishing new firms have allowed the development of an aggressive private sector. As a consequence, consumer rights organisations have also appeared. Restructuring and privatisation of "sensitive sectors" such as coal, steel, railways, and energy has been continuing since 1990. Between 2007 and 2010, the government plans to float twenty public companies on the Polish stock market, including parts of the coal industry. To date (2007), the biggest privatisations have been the sale of the national telecoms firm Telekomunikacja Polska to France Telecom in 2000, and an issue of 30% of the shares in Poland's largest bank, PKO Bank Polski, on the Polish stockmarket in 2004.





Poland has a large number of private farms in its agricultural sector, with the potential to become a leading producer of food in the European Union. However, problems remain, especially under-investment. Structural reforms in health care, education, the pension system, and state administration have resulted in larger-than-expected fiscal pressures. Warsaw leads Central Europe in foreign investment[citation needed] and needs a continued large inflow. GDP growth had been strong and steady from 1993 to 2000 with only a short slowdown from 2001 to 2002. The prospect of closer integration with the European Union has put the economy back on track, with growth of 3.7% annually in 2003, a rise from 1.4% annually in 2002. In 2004, GDP growth equaled 5.4%, in 2005 3.3% and in 2006 5.8%. For 2007, the government has set a target for GDP growth at 6.5 to 7.0%.





The long standing head of the National Bank of Poland, Leszek Balcerowicz, was replaced by S艂awomir Skrzypek in January 2007. At first the markets reacted sceptically and fell, but since then have stabilized and then risen sharply.





Although the Polish economy is currently undergoing economic development, there are many challenges ahead. The most notable task on the horizon is the preparation of the economy (through continuing deep structural reforms) to allow Poland to meet the strict economic criteria for entry into the European Single Currency (Euro). There is much speculation as to just when Poland might be allowed to join the Eurozone, although the best guess estimates put the entry date somewhere between 2009 and 2013[citation needed]. For now, Poland is preparing to make the Euro its official currency (though it has not joined the ERM yet), and the Z艂oty may eventually be replaced by Euro in the Polish economy.





Since joining the European Union, many young Polish people have left their country to work in other EU countries (particularly Ireland and the UK) because of high unemployment, which is the highest in the EU (12.8% in December 2006).[4]





Products Poland produces include clothes, glass, china (Mikasa, Waterford), electronics, cars (such as luxury Leopard car), buses (Autosan, Jelcz SA, Solaris, Solbus), helicopters (PZL 艢widnik), transport equipment, locomotives, planes (PZL Mielec), ships, military engineering (including tanks, SPAAG systems), medicines (Polpharma, Polfa), food, chemical products and others.|||The Polish economy grew rapidly in the mid-1990s, slowed considerably in 2001 and 2002, and returned again to healthy growth rates in 2003. Poland鈥檚 gross domestic product (GDP) grew at an annualized rate of 5.2% in the first quarter of 2006. Faster growth has begun to reduce persistently high unemployment, from nearly 20% in the middle of 2004 to 16.5% in May 2006. Tight monetary policy and dramatic productivity growth have helped to hold down inflation, which was 2.1% in 2005. Likewise, Poland's current account deficit, which grew rapidly in the late 1990s, has since moderated to 1.4% of GDP in 2005. The 2005 budget deficit was 27.5 billion zloty, or 2.8% of GDP in 2005, and the current government pledged to restrain the 2006 and 2007 budgets at 30 billion zloty.





Throughout the 1990s, the United States and other Western countries supported the growth of a free enterprise economy by reducing Poland's foreign debt burden, providing economic aid, and lowering trade barriers. Poland graduated from USAID assistance in 2000 and paid the balance of its U.S.-held Paris Club debt in 2005. Poland officially joined the EU on May 1, 2004.





Agriculture


Agriculture employs 16.1% of the work force but contributes only 5% to the gross domestic product (GDP), reflecting relatively low productivity. Unlike the industrial sector, Poland's agricultural sector remained largely in private hands during the decades of communist rule. Most of the former state farms are now leased to farmer tenants. Lack of credit is hampering efforts to sell former state farmland. Currently, Poland's 2 million private farms occupy 90% of all farmland and account for roughly the same percentage of total agricultural production. These farms are small--8 hectares (ha) on average--and often fragmented. Farms with an area exceeding 15 ha accounted for only 9% of the total number of farms but cover 45% of total agricultural area. Over half of all farming households in Poland produce only for their own needs with little, if any, commercial sales.





Poland is a net exporter of confectionery, processed fruit and vegetables, meat, and dairy products. Processors often rely on imports to supplement domestic supplies of wheat, feed grains, vegetable oil, and protein meals, which are generally insufficient to meet domestic demand. However, Poland is the leading producer in Europe of potatoes and rye and is one of the world's largest producers of sugarbeets. Poland also is a significant producer of rapeseed, grains, hogs, and cattle. Attempts to increase domestic feed grain production are hampered by the short growing season, poor soil, and the small size of farms.





Pressure to restructure the agriculture sector intensified as Poland prepared to accede to the European Union, which is unwilling to subsidize the vast number of subsistence farms that do not produce for the market. The changes in agriculture are likely to strain Poland's social fabric, tearing at the heart of the traditional, family-based small farm as the younger generation drifts toward the cities. Nonetheless, dramatically increasing agricultural exports to the EU-15 (38% growth in 2005) and payments to farmers from Brussels following accession have enriched Polish commercial farmers and dramatically increase support for EU membership in Poland鈥檚 rural areas.





Industry


Before World War II, Poland's industrial base was concentrated in the coal, textile, chemical, machinery, iron, and steel sectors. Today it extends to fertilizers, petrochemicals, machine tools, electrical machinery, electronics, and shipbuilding.





Poland's industrial base suffered greatly during World War II, and many resources were directed toward reconstruction. The communist economic system imposed in the late 1940s created large and unwieldy economic structures operated under a tight central command. In part because of this systemic rigidity, the economy performed poorly even in comparison with other economies in central Europe.





In 1990, the Mazowiecki government began a comprehensive reform program to replace the centralized command economy with a market-oriented system. While the results overall have been impressive, many large state-owned industrial enterprises, particularly the railroad and the mining, steel, and defense sectors, have remained resistant to the change and downsizing required to survive in an open market economy.





Economic Reform Program


The economic reforms introduced in 1990 removed price controls, eliminated most subsidies to industry, opened markets to international competition, and imposed strict budgetary and monetary discipline. Poland was the first former centrally planned economy in central Europe to end its recession and return to growth in the early 1990s. Since 1992, the Polish economy has enjoyed an accelerated recovery, although growth has recently slowed. The private sector now accounts for over two-thirds of GDP.





In early 2002, the government announced a new set of economic reforms known as the Hausner Plan, designed in many ways to complete the process launched in 1990. The package acknowledged the need to improve Poland's investment climate, particularly the conditions for small and medium-sized enterprises, and better prepare the economy to compete as a European Union (EU) member. The government also aimed to improve Poland's public finances to prepare for eventual adoption of the euro. Though the government was able to enact only portions of the Hausner Plan, those successes coupled with successful monetary efforts to strengthen the zloty, have put Poland within reach of the National Bank鈥檚 goal of Euro accession in 2008-2009.





As a result of Poland's growth and investment-friendly climate, the country has received over $85 billion in direct foreign investment (DFI) since 1990, with roughly $7 billion in 2004 alone. According to a recently publish report by Ernst and Young, Poland is tied with Germany as the most attractive destination for foreign investment in Europe. The availability of cheap land and a large, relatively skilled labor force are among Polish strengths. However, the government continues to play a strong role in the economy, as seen in excessive red tape and the high level of politicization in many business decisions. Investors complain that state regulation is not transparent or predictable, and the economy suffers from a lack of competition in many sectors, notably telecommunications.





Foreign Trade





With the collapse of the ruble-based COMECON trading bloc in 1990, Poland scrambled to reorient its trade. As early as 1996, 70% of its trade was with EU-15 members, and neighboring Germany today is Poland's dominant trading partner. Most of Poland's imports are capital goods needed for industrial retooling and for manufacturing inputs, rather than imports for consumption. Therefore, a deficit is expected and should even be regarded as positive at this point. Poland, a member of the World Trade Organization (WTO) and European Union, applies the EU鈥檚 common external tariff to goods from other countries--including the U.S.





In the year since it joined the EU, Poland has experienced an overall growth in exports of 30%. This growth was not confined to trade among EU partners: while exports to EU countries rose by 27%, exports to developing countries rose by 46%, and exports to Russia rose an unexpected 77%. Poland鈥檚 trade balance continued to improve, with export growth significantly outpacing import growth. Opportunities for trade and investment continue to exist across virtually all sectors. The American Chamber of Commerce in Poland, founded in 1991 with seven members, now has more than 300 members. Strong economic growth potential, a large domestic market, EU membership, and political stability are the top reasons U.S. and other foreign companies do business in Poland.





NATIONAL SECURITY


Poland's top national security goal is to further integrate with the North Atlantic Treaty Organization (NATO) and other west European defense, economic, and political institutions via a modernization and reorganization of its military. Polish military doctrine reflects the same defense nature as its NATO partners.





Poland maintains a sizable armed force currently numbering about 140,572 troops divided among an army of 87,877, an air and defense force of 31,147, and a navy of 21,548. Poland relies on military conscription for the majority of its personnel strength. All males (with some exceptions) are subject to a 12-month term of military service. The Polish military continues to restructure and to modernize its equipment. The Polish Defense Ministry General Staff and the Land Forces staff have recently reorganized the latter into a NATO-compatible J/G-1 through J/G-6 structure. Although budget constraints remain a drag on modernization, Poland has been able to move forward with U.S. assistance on acquiring 48 F-16 multi-role fighters, C-130 cargo planes, HMMWVs, and other items key to the military鈥檚 restructuring.





Poland continues to be a regional leader in support and participation in the NATO Partnership for Peace Program and has actively engaged most of its neighbors and other regional actors to build stable foundations for future European security arrangements. Poland continues its long record of strong support for UN Peacekeeping Operations by maintaining a unit in Southern Lebanon, a battalion in NATO's Kosovo Force (KFOR), and by providing and actually deploying the KFOR strategic reserve to Kosovo. Polish military forces have served in both Operation Enduring Freedom in Afghanistan and Operation Iraqi Freedom.





Poland assumed command of a multinational division of stabilization forces in Iraq (MDN-CS) on September 3, 2003. Poland and its MND-CS partners have worked effectively since then to stabilize south central Iraq while working to train Iraqi forces to take over MND-CS responsibilities and operate independently.








GDP (2006): $265.4 billion.


Real GDP growth (2006): 5.3%.


Per capita GDP (2006): $14,100.


Rate of inflation (2006): 1.3%.


Natural resources: Coal, copper, sulfur, natural gas, silver, lead, salt.


Agriculture: Products--grains, hogs, dairy, potatoes, horticulture, sugarbeets, oilseed.


Industry: Types--machine building, iron and steel, mining, shipbuilding, automobiles, furniture, textiles and apparel, chemicals, food processing, glass, beverages.


Trade (2006): Exports--$110.7 billion: furniture, cars, ships, coal, apparel. Imports--$113.2 billion: crude oil, passenger cars, pharmaceuticals, car parts, computers.|||Your best primary resource is Poland's own national portal. Check out this link for more in-depth information on its economy:


http://www.poland.pl/directory/index,Bus鈥?/a>