Poland » Introduction

Basic Economic Facts

GDP composition by Sector

Since its return to democracy, Poland has steadfastly pursued a policy of liberalising the economy and today stands out as one of the most successful and open examples of the transition from a partially state-capitalist market economy to a primarily privately owned market economy. The privatisation of small and medium state-owned companies and a liberal law on establishing new firms have allowed for the rapid development of an aggressive private sector, followed by a development of consumer rights organisations later on. Restructuring and privatisation of "sensitive sectors" (e.g., coal, steel, railways, and energy) has begun.

The biggest privatisations so far were a sale of Telekomunikacja Polska, a national telecom to France Telecom (2000) and an issue of 30% shares of the biggest Polish bank, PKO BP, on the Polish stock market (2004). Poland has a large agricultural sector of private farms that could be a leading producer of food in the European Union now that Poland is a member. Challenges remain, especially under-investment.

Structural reforms in health care, education, the pension system, and state administration have resulted in larger-than-expected fiscal pressures. Warsaw leads Central Europe in foreign investment and allegedly needs a continued large inflow.