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 Poland (2007)Poland (2008)
 PolandPoland
Budget revenues: $63.7 billion


expenditures: $71.78 billion (2006 est.)
revenues: $80.53 billion


expenditures: $88.7 billion (2007 est.)
Debt - external $121.5 billion (2006 est.) $187.8 billion (30 June 2007)
Diplomatic representation in the US chief of mission: Ambassador Janusz REITER


chancery: 2640 16th Street NW, Washington, DC 20009


telephone: [1] (202) 234-3800 through 3802


FAX: [1] (202) 328-6271


consulate(s) general: Chicago, Los Angeles, New York
chief of mission: Ambassador (vacant); Charge d'Affaires Wojciech FLERA; note - Robert KUPIECKI has been named the next Polish Ambassador to the US by the Polish Government


chancery: 2640 16th Street NW, Washington, DC 20009


telephone: [1] (202) 234-3800 through 3802


FAX: [1] (202) 328-6271


consulate(s) general: Chicago, Los Angeles, New York
Disputes - international as a member state that forms part of the EU's external border, Poland must implement the strict Schengen border rules to restrict illegal immigration and trade along its eastern borders with Belarus and Ukraine as a member state that forms part of the EU's external border, Poland has implemented the strict Schengen border rules to restrict illegal immigration and trade along its eastern borders with Belarus and Ukraine
Economy - overview Poland has steadfastly pursued a policy of economic liberalization since 1990 and today stands out as a success story among transition economies. In 2006, GDP grew 5.3%, based on rising private consumption, a 16.7% jump in investment, and burgeoning exports. Poland today has a thriving private sector which created more than 300,000 new jobs during 2006 alone. GDP per capita roughly equals that of the three Baltic states. Consumer price inflation - at 1.3% in 2006 - remains among the lowest in the EU. Since 2004, EU membership and access to EU structural funds has provided a major boost to the economy. Inflows of direct foreign investment exceeded $10 billion in 2006 alone - and more than $100 billion since 1990 - with major investments being announced by foreign firms in computer, consumer electronics, and automobile component production. In early 2006, Poland reached agreement with its EU partners that will permit it to benefit from EU funds totaling nearly $80 billion during 2007-13. Since 2002, even though the zloty appreciated 30%, Poland's exports more than doubled. Despite Poland's successes, more remains to be done. Unemployment, which stood at 15% in December 2006, is still the highest in the EU. An inefficient commercial court system, a rigid labor code, bureaucratic red tape, and persistent corruption keep the private sector from performing to its potential. Agriculture is handicapped by inefficient small farms and inadequate investment. Restructuring and privatization of the remaining state-owned industries, especially "sensitive sectors" such as coal, oil refining, railroads, and energy transmission and generation, have stalled due to concerns about loss of control over critical national assets and lay-offs. Reforms in health care, education, the pension system, and state administration have failed so far to reduce the government budget deficit, which was roughly 2.7 percent of GDP in 2006. Further progress in public finance depends mainly on reducing losses in Polish state enterprises, restraining entitlements, and overhauling the tax code. 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 2005, and Lech KACZYNSKI won the presidential election in October, running on a state-interventionist fiscal and monetary platform. The new government has proceeded cautiously on economic matters, however, retaining, for example, the corporate income tax cuts initiated by the previous administration and indicating its intention to reduce the top personal income tax rate. Poland has pursued a policy of economic liberalization since 1990 and today stands out as a success story among transition economies. In 2007, GDP grew an estimated 6.5%, based on rising private consumption, a jump in corporate investment, and EU funds inflows. GDP per capita is still much below the EU average, but is similar to that of the three Baltic states. Since 2004, EU membership and access to EU structural funds have provided a major boost to the economy. Unemployment is falling rapidly, though at roughly 11% in December 2007, it remains well above the EU average. Tightening labor markets, and rising global energy and food prices, pose a risk to consumer price stability. In December 2007 inflation reached 4.1% on a year-over-year basis, or higher than the upper limit of the National Bank of Poland's target range. Poland's economic performance could improve further if the country addresses some of the remaining deficiencies in its business environment. An inefficient commercial court system, a rigid labor code, bureaucratic red tape, and persistent low-level corruption keep the private sector from performing up to its full potential. Rising demands to fund health care, education, and the state pension system present a challenge to the Polish government's effort to hold the consolidated public sector budget deficit under 3.0% of GDP, a target which was achieved in 2007. The PO/PSL coalition government which came to power in November 2007 plans to further reduce the budget deficit with the aim of eventually adopting the euro. The new government has also announced its intention to enact business-friendly reforms, reduce public sector spending growth, lower taxes, and accelerate privatization. However, the government does not have the necessary two-thirds majority needed to override a presidential veto, and thus may have to water down initiatives in order to garner enough support to pass its pro-business policies.
Exchange rates zlotych per US dollar - 3.1032 (2006), 3.2355 (2005), 3.6576 (2004), 3.8891 (2003), 4.08 (2002)


note: zlotych is the plural form of zloty
zlotych per US dollar - 2.81 (2007), 3.1032 (2006), 3.2355 (2005), 3.6576 (2004), 3.8891 (2003)


note: zlotych is the plural form of zloty
GDP - composition by sector agriculture: 4.5%


industry: 31.7%


services: 63.8% (2006 est.)
agriculture: 4.1%


industry: 31.9%


services: 64% (2007 est.)
GDP - real growth rate 6.1% (2006 est.) 6.5% (2007 est.)
Industrial production growth rate 10.2% (2006 est.) 10% (2007 est.)
Inflation rate (consumer prices) 1% (2006 est.) 2.1% (2007 est.)
International organization participation ACCT (observer), Arctic Council (observer), Australia Group, BIS, BSEC (observer), CBSS, CE, CEI, CERN, EAPC, EBRD, EIB, EU, FAO, IAEA, IBRD, ICAO, ICC, ICCt, ICRM, IDA, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC, MIGA, MINURSO, MONUC, NAM (guest), NATO, NSG, OAS (observer), OECD, OIF (observer), OPCW, OSCE, PCA, UN, UNCTAD, UNDOF, UNESCO, UNHCR, UNIDO, UNIFIL, UNMEE, UNMIL, UNMIS, UNOCI, UNOMIG, UNWTO, UPU, WCL, WCO, WEU (associate), WFTU, WHO, WIPO, WMO, WTO, ZC ACCT (observer), Arctic Council (observer), Australia Group, BIS, BSEC (observer), CBSS, CE, CEI, CERN, EAPC, EBRD, EIB, ESA (cooperating state), EU, FAO, IAEA, IBRD, ICAO, ICC, ICCt, ICRM, IDA, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC, MIGA, MINURSO, NAM (guest), NATO, NSG, OAS (observer), OECD, OIF (observer), OPCW, OSCE, PCA, Schengen Convention, SECI (observer), UN, UNCTAD, UNDOF, UNESCO, UNHCR, UNIDO, UNIFIL, UNMEE, UNMIL, UNMIS, UNOCI, UNOMIG, UNWTO, UPU, WCL, WCO, WEU (associate), WFTU, WHO, WIPO, WMO, WTO, ZC
Labor force 16.94 million (2006 est.) 17.01 million (2007 est.)
Legislative branch bicameral National Assembly or Zgromadzenie Narodowe consists of the Senate or Senat (upper house) (100 seats; members are elected by a majority vote on a provincial basis to serve four-year terms), and the Sejm (lower house) (460 seats; members are elected under a complex system of proportional representation to serve four-year terms); the designation of National Assembly is only used on those rare occasions when the two houses meet jointly


elections: Senate - last held 21 September 2007 (next to be held by September 2011); Sejm elections last held 21 September 2007 (next to be held by September 2011)


election results: Senate - percent of vote by party - NA; seats by party - PO 60, PiS 39, independents 1; Sejm - percent of vote by party - PO 41.5%, PiS 32.1%, SLD 13.2%, PSL 8.9%, other 4.3%; seats by party - PO 209, PiS 166, SLD 53, PSL 31, German minorities 1


note: one seat is assigned to ethnic minority parties in the Sejm only
bicameral National Assembly or Zgromadzenie Narodowe consists of the Senate or Senat (upper house) (100 seats; members are elected by a majority vote on a provincial basis to serve four-year terms), and the Sejm (lower house) (460 seats; members are elected under a complex system of proportional representation to serve four-year terms); the designation of National Assembly is only used on those rare occasions when the two houses meet jointly


elections: Senate - last held 21 October 2007 (next to be held by October 2011); Sejm elections last held 21 October 2007 (next to be held by October 2011)


election results: Senate - percent of vote by party - NA; seats by party - PO 60, PiS 39, independents 1; Sejm - percent of vote by party - PO 41.5%, PiS 32.1%, LiD 13.2%, PSL 8.9%, other 4.3%; seats by party - PO 209, PiS 166, LiD 53, PSL 31, German minorities 1; note - seats by party as of February 2008 - PO 209, PiS 159, LiD 53, PSL 31, German minorities 1, nonaffiliated 7


note: one seat is assigned to ethnic minority parties in the Sejm only
Military branches Armed Forces of the Polish Republic (Sily Zbrojne Rzeczypospolitej Polskiej, SZRP): Land Forces (includes Navy (Marynarka Wojenna, MW)), Polish Air Force (Sily Powietrzne Rzeczypospolitej Polskiej, SPRP) (2006) Polish Armed Forces: Land Forces (includes Navy (Marynarka Wojenna, MW)), Polish Air Force (Sily Powietrzne Rzeczypospolitej Polskiej, SPRP) (2008)
Pipelines gas 13,552 km; oil 1,384 km; refined products 777 km (2006) gas 13,552 km; oil 1,384 km; refined products 777 km (2007)
Political parties and leaders Catholic-National Movement or RKN [Antoni MACIEREWICZ]; Civic Platform or PO [Donald TUSK]; Conservative Peasants Party or SKL [Artur BALASZ]; Democratic Left Alliance or SLD [Wojciech OLEJNICZAK]; Democratic Party or PD [Janusz ONYSZKIEWICZ]; Dom Ojczysty (Fatherland Home); German Minority of Lower Silesia or MNSO [Henryk KROLL]; Law and Justice or PiS [Jaroslaw KACZYNSKI]; League of Polish Families or LPR [Roman GIERTYCH]; Peasant-Democratic Party or PLD [Roman JAGIELINSKI]; Polish Accord or PP [Jan LOPUSZANSKI]; Polish Peasant Party or PSL [Waldemar PAWLAK]; Ruch Patriotyczny or RP [Jan OLSZEWSKI]; Samoobrona or SO [Andrzej LEPPER]; Social Democratic Party of Poland or SDPL [Marek BOROWSKI]; Social Movement or RS [Krzysztof PIESIEWICZ]; Union of Labor or UP [Andrzej SPYCHALSKI] Civic Platform or PO [Donald TUSK]; Democratic Left Alliance or SLD [Wojciech OLEJNICZAK]; Democratic Party or PD [Janusz ONYSZKIEWICZ]; German Minority of Lower Silesia or MNSO [Henryk KROLL]; Law and Justice or PiS [Jaroslaw KACZYNSKI]; League of Polish Families or LPR [Roman GIERTYCH]; Left and Democrats (LiD) (a coalition formed by the SLD, PD, SDPL, and UP) [Wojciech OLEJNICZAK]; Polish People's Party or PSL [Waldemar PAWLAK]; Samoobrona or SO [Andrzej LEPPER]; Social Democratic Party of Poland or SDPL [Marek BOROWSKI]; Union of Labor or UP [Andrzej SPYCHALSKI]
Political pressure groups and leaders All Poland Trade Union Alliance or OPZZ (trade union) [Jan GUZ]; Roman Catholic Church [Cardinal Jozef GLEMP]; Solidarity Trade Union [Janusz SNIADEK] All Poland Trade Union Alliance or OPZZ (trade union) [Jan GUZ]; Roman Catholic Church [Cardinal Stanislaw DZIWISZ, Archbishop Jozef MICHALIK]; Solidarity Trade Union [Janusz SNIADEK]
Telephone system general assessment: modernization of the telecommunications network has accelerated with market based competition finalized in 2003; fixed-line service, dominated by the former state-owned company, is dwarfed by the growth in wireless telephony


domestic: wireless service, available since 1993 (GSM service available since 1996) and provided by three nation-wide networks, has grown rapidly in response to the weak fixed-line coverage; third generation UMTS service available in urban areas; cellular coverage is generally good with more gaps in the east; fixed-line service is growing slowly and still lags in rural areas


international: country code - 48; international direct dialing with automated exchanges; satellite earth station - 1 with access to Intelsat, Eutelsat, Inmarsat, and Intersputnik
general assessment: modernization of the telecommunications network has accelerated with market based competition finalized in 2003; fixed-line service, dominated by the former state-owned company, is dwarfed by the growth in wireless telephony


domestic: mobile-cellular service available since 1993 and provided by three nation-wide networks with a fourth provider beginning operations in late 2006; cellular coverage is generally good with some gaps in the east; fixed-line service is growing slowly and still lags in rural areas


international: country code - 48; international direct dialing with automated exchanges; satellite earth station - 1 with access to Intelsat, Eutelsat, Inmarsat, and Intersputnik
Unemployment rate 14.9% (2006 est.) 12.8% (2007 est.)
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