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Poland country report
1.
2. Main Industry Sectors
Economic Overview
Foreign Direct Investment [FDI]
FDI Government Measures
Country Strong Points
Country Weak Points
Foreign Trade Overview
3. In Poland, agriculture employs less than 20% of the active population and contributes to about
5% of the GDP.
Poland is generally self-sufficient as far as food is concerned.
The main crops are rye, potatoes, beetroot, wheat and dairy products.
Poland breeds pigs and sheep as livestock farming.
Poland is relatively rich in natural resources and the main minerals produced are coal, sulfur,
copper, lead and zinc.
The manufacturing industry is the economy driver, contributing to about 30% of the GDP,
whereas the tertiary sector represents about 65% of the GDP.
Poland's main industrial sectors are machine manufacturing, telecommunications,
environment, transport, construction, industrial food processing and information technologies.
The automobile industry has resisted well the effects of the economic crisis because this
sector was placed at the niche at the right time when there was a high demand for small
economic vehicles, which was exactly what Poland was producing
4. As a member of the European Union since 2004, Poland 's economic situation was
strengthened with its integration into the community.
The growth of the GDP, which was solid between 2006 and 2008, was affected by the
international economic crisis, but Poland was the only European country that
experienced a positive growth in 2009.
The growth of the GDP rose to 3.4% in 2010 and it should be stronger in
2011, supported by the domestic demand and investments, a typical characteristic of the
economies that are on the catching-up stage.
The slowdown of the economy and some fiscal measures have intensified the deficit.
The government has adopted a consolidating plan for public finance.
The objective is to reduce the public deficit from 7% in 2010 to 3% in 2013 and to keep
the public debt under 55% of the GDP.
The plan anticipates, among many issues, an increase of VAT and the privatization and
reduction of manpower in the public administration.
The unemployment rate, which had been on a steady decrease since 2004, has risen
during the crisis and it has reached 9.8% in 2010.
5. The flows of foreign direct investment in Poland slowed down after the global recession, but their
dynamism was met again in 2010.
Poland figures among the most attractive countries in Europe in terms of FDI.
The real estate sector represents more than 40% of the total FDI, due to the fact that besides the existing
real estate trade, the industry and services fields have also a large real estate component .
The main assets of Poland are: its strategic position, its large population, its membership to the European
Union, its economic stability and its fiscal system which is attractive to the companies.
6. Investment assistance in special economic zones (SEZ);
Entrepreneur access to European Union structural funds;
Creation of industrial and technological zones that enable a synergy of companies working in
the same sector;
Low costs of labor.
In order to face the economic crisis and support long term foreign investments, the Polish
government has formulated a stabilization and development plan for the years 2009 and 2010 of
Euro 24 billion, particularly to grant credit to small and medium companies and invest in
renewable energy sources.
7. A fast-growing economy, location in central Europe, a multilingual work force and cheap
labor costs make Poland an internationally attractive country.
Poland also enjoys a well managed healthy economy, which is withstanding the crisis better
than other European countries.
Central European countries, its population did not have to resort to loans in foreign
currencies, in particular Swiss, a fact which protects the population from maximum debt.
8. Slow administrative procedures (according to the World Bank it takes
31days to form a company) and a deficit in the current account are the
negative points linked to the Polish economy.
The adoption of the Euro, initially planned for 2012 is compromised by
the financial crisis and thus delaying the benefits to the economy.
9. Poland is an open country to foreign investment.
During the 2007-2009 period, trade represented more than 80% of the GDP.
The geographical location of Poland gives it a strategic importance. As a fact, Poland is situated half-
way between Paris and Moscow and between Stockholm and Budapest, and it has important ports
which are connected to the North Sea through the Baltic Sea.
Poland constitutes an excellent place for the export of merchandise to the former Soviet republics.
Poland became a member of the European Union, its exports have increased more than 30%, in
particular towards Russia (more than 75%).
After having experienced a strong decline on its trade balance during the crisis, the country has
shown a very slight deficit on its trade balance in 2010, a trend that should continue during the next
following years.
The three main trade partners of the country are the European Union, Russia and China.
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