ECONOMY OF POLAND The Economy of Poland is the sixth-largest in the EU and the largest among the ex-communist members of the European Union. Before the late-2000s recession its economy grew a yearly growth rate of over 6.0% .[13] According to the Central Statistical Office of Poland, in 2010 the Polish economic growth rate was 3.9%, which was one of the best results in Europe. In Q1 2014 its economy grew by 3.4% and is expected to grow by 3.4% in 2014, grow by 3.7% in 2015 and 3.9% in 2016. Despite its GDP growth, Poland faces numerous economic issues; it has chronic high unemployment, low wages despite significant increase of productivity, massive flight of educated population abroad, low level of innovativeness and highest percentage of people working for national minimum wage among countries of European Union. The Polish Ministry of Treasure reported in 2012 The situation on the Polish labor market gradually worsens, reflecting the decreasing pace of Poland’s economic growth. The Polish state has steadfastly pursued a policy of economic liberalization throughout the 1990s, with positive results for economic growth but negative results for some sectors of the population. The privatization of small and medium state-owned companies and a liberal law on establishing new firms has encouraged the development of the private business sector, which has been the main drive for Polands economic growth. The agricultural sector remains handicapped by structural problems, surplus labor, inefficient small farms, and a lack of investment. Restructuring and privatization of sensitive sectors (e.g. coal), has also been slow, but recent foreign investments in energy and steel have begun to turn the tide. Recent reforms in health care, education, the pension system, and state administration have resulted in larger than expected fiscal pressures. Improving this account deficit and tightening monetary policy, with focus on inflation, are priorities for the Polish government. Further progress in public finance depends mainly on the reduction of public sector employment, and an overhaul of the tax code to incorporate farmers, who currently pay significantly lower taxes than other people with similar income levels. Despite some continued systemic problems, Poland has made great economic progress over the last decade, and now is ranked 20th worldwide in terms of GDP. The largest component of its economy is the service sector. With the economic reform of 1989 the Polish external debt increased from $42,2 billion in 1989] to $365.2 billion in 2014.
Posted on: Mon, 21 Jul 2014 11:54:53 +0000
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