| Economy - overview: | Poland has steadfastly pursued a policy of economic liberalization throughout the 1990s and today stands out as a success story among transition economies. Even so, much remains to be done, especially in bringing down the unemployment rate-currently the highest in the EU. The privatization of small and medium-sized state-owned companies and a liberal law on establishing new firms has encouraged the development of the private business sector, but legal and bureaucratic obstacles alongside persistent corruption are hampering its further development. Poland's agricultural sector remains handicapped by surplus labor, inefficient small farms, and lack of investment. Restructuring and privatization of "sensitive sectors" (e.g., coal, steel, railroads, and energy), while recently initiated, have stalled. Reforms in health care, education, the pension system, and state administration have resulted in larger-than-expected fiscal pressures. Further progress in public finance depends mainly on reducing losses in Polish state enterprises, restraining entitlements, and overhauling the tax code to incorporate the growing gray economy and farmers, most of whom pay no tax. 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, and Lech KACZYNSKI won the presidential election in October, running on a state-interventionist fiscal and monetary platform. Poland joined the EU in May 2004, and surging exports to the EU contributed to Poland's strong growth in 2004, though its competitiveness could be threatened by the zloty's appreciation. GDP per capita roughly equals that of the three Baltic states. Poland stands to benefit from nearly $23.2 billion in EU funds, available through 2006. Farmers have already begun to reap the rewards of membership via booming exports, higher food prices, and EU agricultural subsidies. |
| GDP - per capita | $12,700 (2005 est.) |
| GDP - real growth rate (%) | 3.3% (2005 est.) |
| Agriculture - products | potatoes, fruits, vegetables, wheat; poultry, eggs, pork, dairy |
| GDP - composition by sector (%) | agriculture: 2.8%, industry: 31.7%, services: 65.5% (2005 est.) |
| Industries | machine building, iron and steel, coal mining, chemicals, shipbuilding, food processing, glass, beverages, textiles |
| Economic aid - recipient | $13.9 billion in available EU structural adjustment and cohesion funds (2004-06) |
| Debt - external | $123.4 billion (30 June 2005 est.) |
| Population below poverty line (%) | 17% (2003 est.) |
| Labor force - by occupation (%) | agriculture 16.1%, industry 29%, services 54.9% (2002) |
Environment, Land use / Resources, Economy, Population / Demographics, Infrastructure, Health -- CIA World Factbook, 2005
