Poland/Economy

Economy - overview: Poland today stands out as one of the most successful and open transition economies. The privatization of small and medium state-owned companies and a liberal law on establishing new firms marked the rapid development of a private sector now responsible for 70% of economic activity. In contrast to the vibrant expansion of private non-farm activity, the large agriculture component remains handicapped by structural problems, surplus labor, inefficient small farms, and lack of investment. The government's determination to enter the EU as soon as possible affects most aspects of its economic policies. Improving Poland's worsening current account deficit and tightening monetary policy, now focused on inflation targeting, also are priorities. Warsaw continues to hold the budget deficit to around 2% of GDP. Structural reforms advanced in pensions, health care, and public administration in 1999, but resulted in larger than anticipated fiscal pressures. Further progress on public finance depends mainly on privatization of Poland's remaining state sector. Restructuring and privatization of "sensitive sectors" (e.g., coal and steel) has begun, but work remains to be done. Growth in 2000 should be moderately above 1999.

GDP: purchasing power parity - $276.5 billion (1999 est.)

GDP - real growth rate: 3.8% (1999 est.)

GDP - per capita: purchasing power parity - $7,200 (1999 est.)

GDP - composition by sector:
agriculture: 5%
industry: 35%
services: 60% (1998)

Population below poverty line: 23.8% (1993 est.)

Household income or consumption by percentage share:
lowest 10%: 4%
highest 10%: 22.1% (1992)

Inflation rate (consumer prices): 8.4% (1999 est.)

Labor force: 15.3 million (1998 est.)

Labor force - by occupation: industry 25%, agriculture 25%, services 50% (1999 est.)

Unemployment rate: 11% (1999 est.)

Budget:
revenues: $31.6 billion
expenditures: $34.8 billion, including capital expenditures of $NA (1999 est.)

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

Industrial production growth rate: 4.5% (1999 est.)

Electricity - production: 134.879 billion kWh (1998)

Electricity - production by source:
fossil fuel: 96.47%
hydro: 3.18%
nuclear: 0%
other: 0.35% (1998)

Electricity - consumption: 121.938 billion kWh (1998)

Electricity - exports: 8.1 billion kWh (1998)

Electricity - imports: 4.6 billion kWh (1998)

Agriculture - products: potatoes, fruits, vegetables, wheat; poultry, eggs, pork, beef, milk, cheese

Exports: $27.8 billion (f.o.b., 1999)

Exports - commodities: manufactured goods and chemicals 57%, machinery and equipment 21%, food and live animals 12%, mineral fuels 7% (1997)

Exports - partners: Germany 36%, Italy 5.8%, Russia 5.6%, Netherlands 4.7%, France 4.6%, Ukraine 3.8%, UK 3.8 (1998)

Imports: $40.8 billion (f.o.b., 1999)

Imports - commodities: manufactured goods and chemicals 43%, machinery and equipment 36%, mineral fuels 9%, food and live animals 8% (1997)

Imports - partners: Germany 25.8%, Italy 9.4%, France 6.5%, Russia 5.1%, UK 4.9%, US 3.8%, Netherlands 3.8% (1998)

Debt - external: $44 billion (1998)

Economic aid - recipient: $4.312 billion (1995)

Currency: 1 zloty (Zl) = 100 groszy

Exchange rates: zlotych (Zl) per US$1 - 4.1696 (December 1999), 3.9671 (1999), 3.4754 (1998), 3.2793 (1997), 2.6961 (1996), 2.4250 (1995)

Fiscal year: calendar year