Economic stability and a strong economy
Poland is the largest country in Central and Eastern Europe and the 6th largest in Europe. The Polish economy has been developing at a steady pace for over 25 years and is the sixth largest economy in the European Union, with GDP per capita being above 70% of the EU average (in terms of purchasing power parity). The fact that Poland, as the only country in Europe, was not affected by the 2008-2010 recession testifies to its exceptionally healthy development foundations. Currently, the main drivers of economic growth are exports and domestic consumption.
Macroeconomic stability
Poland stands as the right choice for your investment due to its sound public finance and the opportunity for long-term investment planning, thanks to the country’s economic stability and predictability. Poland was the only country in Europe to avoid the financial crisis, and in terms of debt-to-GDP ratio, Polish public finances remain in a better state compared to the EU’s average.
Strong economy
According to the International Monetary Fund, the Polish economy developed at a rate of 4% in 2019, i.e. much faster than the average growth rate in the Euro Zone and the entire European Union (1.2% and 1.5%, respectively). Despite suffering a setback in 2020 due to the global coronavirus pandemic, the Polish economy recovered swiftly, achieving an impressive 5.1% GDP growth in 2021 and projected 4.6% in 2022.
GDP growth - constant prices (%)
Source: IMF World Economic Outlook, October 2021 & January 2022
The process of restructuring the Polish economy that started in 1989 continues and it is becoming increasingly integrated with the world economy. Polish products and companies figure strongly in the European production chains, and the priority for the Polish authorities is to provide solid foundations for business development and entrepreneurship. This complex goal is being achieved by ensuring that business is done in a transparent and predictable manner.
Economic data (GUS, IMF, data for year 2020)
- GDP value: USD 565.85 billion (current prices),
- GDP growth: 4.0%,
- Annual inflation: + 2.3%,
- Export: USD 264,5 bn,
- The volume of trade turnover and balance: exports EUR 235.8 billion, imports EUR 234 billion, balance EUR 1.8 billion.
- Public debt / GDP: 46.5% (at the end of the year),
- Unemployment rate: 5.2% (at the end of the year).
Poland's foreign trade turnover in 2010-2020
Source: Statistics Poland (PL:GUS)
The foreign trade turnover of goods once again reached a record high level in 2019. Exports amounted to EUR 235.8 billion, signifying a 5.5% increase (y / y), and imports amounted to nearly EUR 234 billion (an increase by 2.6% y / y). Considering the significant volatility of factors that surrounded Poland and its economy, including a lower foreign demand from our trading partners and slowdown of global trade, as well as uncertainty related to customs policies and the UK's exit from the European Union, the overall turnover results for 2019 should be considered more than satisfactionary. The collapse of the world economy that occurred as a result of the Coronavirus pandemic in 2020 also had a negative impact on the Polish economy, although to a significantly lesser extent than in most countries - Poland's exports at the end of 2020 amounted to EUR 237.5 billion (a decrease by 0.27% y / y) while imports for the same period reached EUR 225.5 billion (a decrease by 4.83% y / y). Rapid economic rebound later in the year bodes well for the coming years.
Export dynamics in 2020
Source: Statistics Poland (PL:GUS)
Import dynamics in 2020
Source: Statistics Poland (PL:GUS)
A breakdown of Polish exports in 2020, by country
Source: Statistics Poland (PL:GUS)