Detailed Review of Poland’s Economy
Invigorated by its accession to the European Union the Polish economy has resisted the 2008 crisis well due to domestic consumption and numerous public investments. However its current growth rate is lower than when it joined the EU, estimated at 2.1% for 2014.
Polish agriculture accounts for 5% of the country’s GDP and produces mainly rye, beet, wheat, apples and dairy products. This agricultural activity enables Poland to cover its own food demand and the country possesses numerous natural resources which are still very useful for development and mines coal, sulfur, copper, lead and zinc.
Manufacturing is an important part of Poland’s economy and the main sectors of Polish industry are: telecommunications, machinery production, transport, food preparation and IT. Finally, services account for 65% of national GDP.
The country focuses on international trade, even more so since its entry into the European Union, which has increased trade with its European neighbours. Poland is in an advantageous location, due to its proximity to Russia, its well-developed coastline and large ports. Its main trading partners are the EU, Russia and China.
Poland’s Economic Strengths
- Good location.
- Cheap, multilingual labour.
- Stable economy.
Poland’s Economic Weaknesses
- The country has not adopted the Euro.
- Very slow administration.
The Polish Government seeks to promote foreign investment via several measures to reduce labour costs and attract foreign businesses to establish there.