Economic Overview of Poland Economic

Economic Overview of Poland

Economic Indicators: Poland

the 2004 population estimate for Poland was 38,182,000. The estimate for 2007 was 38,065,000

2a) the 2007 estimated GDP as measured in terms of purchasing power parity was $631.8 billion.

2b) the 2007 estimated GDP as measured in terms of exchange rate calculation was $413.3 billion.

3a) the 2007 estimated GDP per capita as measured in terms of purchasing power parity was $16,598

3b) the 2007 estimated GDP per capita as measured in terms of exchange rate calculation was $10,858

Between 2004 and 2007 the average population growth rate was -0.077% per annum.

5a) Between 2004 and 2007 the real GDP growth rate per annum based on purchasing power parity was 6.35%

5b) Between 2004 and 2007 the real GDP growth rate per annum based on exchange rate calculation was 13.05%

5c) Between 2004 and 2007 the real GDP growth rate per annum based on local currency was 5.8%

6a) Between 2004 and 2007 the real GOP growth rate per annum per capita based on purchasing power parity was 6.46%

6b) Between 2004 and 2007 the real GDP growth rate per annum per capita based on exchange rate calculation was 13.14%

6c) Between 2004 and 2007 the real GOP growth rates per annum per capita were 6.383%

7) the rate of investment of 2004 was estimated at 18.4%

8) the rate of savings (gross national savings) was difficult to find, but one estimate was 21% of gross national income. It was also noted in multiple articles that the rate of savings through the 90s was significantly lower that OECD nations but has been of late moving towards parity with the EU and other developed countries.

9) the government deficit for 2005 was 47.3% of GDP

10) Exports in 2006 were 32.13% of GOP

11) Imports in 2006 were 36.85% of GOP

12) Manufacturing was 31.7% of GOP in 2006

13) the average rate of inflation from 2004 to 2007 was 1.346%

14) the literacy rate is 99.7%, with males at 99.8% and females at 99.7% in 2003.

15) the average years of education for Poland for 2004 was estimated to be 11.8, with males at 11.6 and females at 11.9. The younger the demographic, the more years of education the average Pole has.

16) the capital stock for Poland is aging, but nothing more precise could be determined.

17) Poland does not have any particular technological advantage nor disadvantage. The industry is nascent in the country, but the education and infrastructure - especially in urban areas - is able to support modern life and business.

18) Poland has some limited energy and mineral resources. It is a net exporter of electricity and natural gas but a net importer of oil. Proved oil reserves are 96.38 million barrels, which would meet its needs for less than one year. At the current rate of consumption, Poland's proven reserves will be exhausted in 8 years.

Poland has proved natural gas reserves of 158.1 billion cu/m, which is enough to meet its needs for 10 years. At the current rate of production, supplies will be exhausted in 27 years.

19) Corruption Index Score +0.14 (with 2.5 being best and -2.5 being worst)

Joined EU in 2004

Press Freedom Score 22 (0 being free, 100 being not-free)

The economic outlook for Poland is moderately strong. The country has several strong growth factors, with only a handful of negative points. Poland joined the EU in 2004 and has seen steady growth since that point. If Poland is successful in its bid to adopt the Euro as its currency in 2012 that will further improve trade and fiscal stability.

GDP growth in Poland has been steady throughout the past few years. This is almost entirely based on economic growth as the population has remained essentially the same over the past several years. One of the main precursors for Poland's growth has been in its workforce. It left the communist days with a largely outdated industrial sector, but has swiftly joined the information age due to the quality of its workforce. Literacy is near 100% and Poles receive an amount of schooling that is comparable to other leading Eastern European countries. Moreover, the average amount of education received by Poles is higher amongst younger demographics, which shows that Poland is on par with other developing countries in terms of having an increasingly educated workforce.

Poland's economic base has moved to a majority service-base, with industry representing just 31.7% of the GOP in 2006. Moreover, Poland is a net importer, which could indicate that their wealth is outstripping their ability to produce goods at present.

Inflation has been a success story for Poland in recent years, hovering around the 1-2% mark each year. This has allowed for a degree of economic stability on a par with leading EU nations. Moreover, legal harmonization with the EU has brought their legal system in line with the ideals of free market capitalism.

Among the drawbacks are the indications that Poland has traditionally had an abnormally low rate of savings. Recent indications are that this is starting to improve. Another obstacle to growth is political instability, as democracy has not brought a history of stable government with it. Despite the ever-changing cast, policy itself has remained stable enough so as not to dissuade potential investors, and democracy has become firmly established. Poland also has a small problem with low-level corruption, which is unlike many EU counterparts. If that is not rectified, economic development could be hampered.

Overall, Poland is well-situated to become highly developed in the next fifty years. The country's move towards a service economy bodes well. It plays to the strength, which is the literate and highly-educated population. It also moves the country away from areas of weakness, which include a lack of natural resources and inadequate fuel supplies to last beyond a generation. Poland is not set up to be the industrial powerhouse that the communists had hoped it would be.

With stable GDP growth, low inflation, an educated workforce and a move towards adopting the Euro, it seems almost certain that Poland will become a highly-developed country in the next fifty years. There is nothing to indicate that their current progress will be delayed - they have some reasons for optimism but have few reasons for pessimism.