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 at least two-thirds 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 all aspects of its economic policies. Improving Poland's worsening current account deficit also is a priority. To date, the government has resisted pressure for protectionist solutions and continues to support regional free trade initiatives. The government export strategy emphasizes a more aggressive export assistance program. Warsaw continues to hold the budget deficit to less than 2% of GDP. Further progress on public finance depends mainly on comprehensive reform of the social welfare system and privatization of Poland's remaining state sector. Restructuring and privatization of "sensitive sectors" (e.g., coal, steel) has been delayed. Long-awaited privatizations in aviation, energy, and telecommunications are scheduled for 1998.

GDP purchasing power parity - $280.7 billion (1997 est.)

GDP - real growth rate 6.9% (1997 est.)

GDP - per capita purchasing power parity - $7,250 (1997 est.)

GDP - composition by sector
agriculture: 6.6%
industry: 34.9%
services: 58.5% (1996 est.)

Inflation rate - consumer price index 15% (1997 est.)

Labor force
total: 17.7 million (1997 est.)
by occupation: industry and construction 29.9%, agriculture 26%, services 44.1% (1996)

Unemployment rate 12% (1997)

Budget
revenues: $33.8 billion
expenditures: $35.5 billion, including capital expenditures of $NA (1997 est.)

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

Industrial production growth rate 11.2% (1997 est.)

Electricity - capacity 33.5 million kW (1997 est.)

Electricity - production 142 billion kWh (1997 est.)

Electricity - consumption per capita 3,360 kWh (1995)

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

Exports
total value: $26.4 billion (f.o.b., 1997 est.)
commodities: intermediate goods 38%, machinery and transport equipment 23%, consumer goods 21%, foodstuffs 10%, fuels 7% (1996 est.)
partners: Germany 34.5%, Russia 6.8%, France 5.9%, Italy 5.6%, US 4.8%, Netherlands 4.1% (1996)

Imports
total value: $44.5 billion (f.o.b., 1997 est.)
commodities: machinery and transport equipment 32%, intermediate goods 20%, chemicals 15%, consumer goods 9%, food 9%, fuels 8% (1996 est.)
partners: Germany 26.5%, Italy 10.4%, Russia 7.3%, UK 6.3%, Netherlands 4.8%, France 4.4% (1996)

Debt - external $43 billion (1997 est.)

Economic aid
recipient: US, $210 million (1995-97)

Currency 1 zloty (Zl) = 100 groszy

Exchange rates zlotych (Zl) per US$1 - 3.54 (January 1998), 3.2793 (1997), 2.6961 (1996), 2.4250 (1995); note - a currency reform on 1 January 1995 replaced 10,000 old zlotys with 1 new zloty; 22,723 (1994), 18,115 (1993), 13,626 (1992)

Fiscal year calendar year

NOTE: The information regarding Poland on this page is re-published from the 1998 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Poland Economy 1998 information contained here. All suggestions for corrections of any errors about Poland Economy 1998 should be addressed to the CIA.