Poland, a name that originates from the tribe Polanie, that means: “people living in open fields”. Poland has emerged as a dynamic market in the last 25 years and has become the sixth largest economy in Europe and one of the main economies within the European Union (EU).
In order to have a better understanding of how the Polish system works and how it became one of Europe’s largest economies, let’s start with a brief introduction about the country itself. Poland is a country in Central Europe surrounded by Belarus, Czech Republic, Germany, Lithuania, Russia, Slovakia, and Ukraine. Its government system is a Republic, in which the Chief of State is the President and the head of government is the Prime Minister; it counts with a GDP of 524.5 billion USD as of 2017, specialized in the agricultural, manufacturing, service and tertiary sectors.
This is a country rich in natural resources and mineral products such as coal, copper, and zinc, an industry that contributes about 2.7% of GDP. The manufacturing industry contributes more than 33.7% of GDP and employs 29.6% of the labor force and most importantly the manufacture of heavy machinery for telecommunications, transportation, industrial food processing among others. The tertiary sector accounts for 63.6% of GDP and employs 59.8% of the active population, and at last the service sector which is in full expansion, specializing in financial services, logistics, hospitality, and technology.
After decades of battling an unstable economy, it was recorded last year that household consumption spending, which accounts for 61% of GDP, recorded its strongest growth in the last decade (4.7%) due to the government’s efforts to lower retirement age and a subtle revaluation of minimum wages, which according to the Santander Group, Commercial Bank’s sources, led to a result of “improvement in the collection of taxes on the value of the debt, which led the government to gain 11.4% more than in 2016”.
The Polish economy performed well between 2014 and 2017, with a real growth rate that generally exceeds 3%. In 2017, the country’s economy expanded by 4.6% (OECD), the fastest pace since 2011. Its proximity to West European markets, generated price competitiveness and a qualified cheap labor force in its diversified economy with a market of more than 38 million people. Be aware that there’s an inadequate level of investment and low domestic savings rate.
If you are thinking about investing in Poland or would like to know more about the opportunities we offer in Central Europe, contact us at [email protected] or +1 (786) 773-3673 for more information.