Poland represents a market of 38 million people, located at the heart of Central Europe. It shares borders with both newly accessed and long-standing members of the EU and markets to the east, including Ukraine, Belarus and Russia. It is an upper middle income country with an estimated GNI per capita of $9,840 in 2007.
Among Poland's more significant achievements, since transition began, are consistently strong economic growth that averaged 4.6 per cent a year between 1996 and 2007 and gaining EU membership. It became a fully integrated member of the EU in May 2004.
Economy
Although the Polish economy slowed in 2008, growth was a still solid 4.8 per cent. This represented the country's 18th straight year of growth. Growth has been largely driven by a a robust increase in private consumption, high export output and a revival in business investment including new foreign direct investment.
Commercial construction has also provided an added impetus for growth and will continue to do so as the country's road, rail and airport infrastructure and tourism and athletic facilities are overhauled in line with EU commitments and plans to host the European Cup in 2012.
As a result of the international financial crisis, the economy is expected to see a slight contraction in 2009 before a gradual recovery begins in 2010. Growth rates are then expected to average 3.5 per cent between 2011-2013.
Poland's economic performance has been impressive in recent years and could be more so, if the country were to address the remaining deficiencies in its business environment. An inefficient commercial court system, a rigid labour code, bureaucratic red tape and persistent low level corruption are hindering the private sector and preventing it from performing to its full potential.
Investment Climate
Poland's entry into the EU in 2004 was a milestone in the country’s political and economic transformation. The largest of the new accession countries in terms of size and population, it is also the biggest recipient of EU funds, receiving €67.2 billion for the period 2007-13.
With consistently strong economic growth, a young and well-educated labour force, and located at the crossroads between Eastern and Western Europe, Poland offers a large potential market in central Europe.
The new government is willing to co-operate with local and foreign investors. Foreign companies enjoy unrestricted access to the Polish market, apart from legal limitations on foreign ownership of companies in selected strategic sectors and registration of medical products. Progress has been made in improving the climate for foreign investment.
In an attempt to stimulate business activity, strict banking regulation on the provision of loans has been relaxed, reducing the cost of lending. Bankruptcy law and the administration of real estate registers have also been improved and corporate income tax has been slashed from 27 per cent to 19 per cent.
New laws have been put in place since the beginning of the decade to replace existing legislation. The goal of the new laws is to limit the role of the state in economic and commercial life, notably reducing the number of government approvals and inspections and setting simple and clear rules for undertaking and performing economic activity.
Automotives
The automotive industry has played an increasingly important role in the Polish economy, contributing around seven per cent to GDP. Products supplied by the automotive industry have become leading items on the list of Polish exports. In recent years, the sale of automotive industry products has been growing faster than that of Polish products as a whole, despite a decrease in the number of vehicles sold on the domestic market. Currently, the country exports approximately 90 per cent of its production.
It is estimated that, by the end of last year, around 1.1 million cars had left Polish production lines, demonstrating a record year for car manufacturers in the country. Unfortunately, the car market has slowed dramatically as a result of the global economic slowdown. Production figures for 2009 are likely to reflect this slowdown.
Opportunities
In 2007, Poland and the Ukraine were selected to host the European Football Championships in 2012. Preparation for EURO 2012 is a huge long-term project for Poland which continues to generate numerous opportunities across a number of sectors. The project involves the extensive construction of new infrastructure and modernisation of the existing one such as:
Sport infrastructure:
• Three new stadia will be constructed and other three upgraded (est. budget €950 million)
• 16 new training and accommodation centres will be established for the football teams
Roads:
• 1650 km of express roads and 900 km of highways will be built/upgraded (total budget €6.6bn) Railways:
• Over 1,500 km of railways will be modernised (est. budget €4.5bn)
Airports:
• Eight airports with the surrounding infrastructure will be expanded (est. budget €1.8bn)
Hotels:
• Around 400 new hotels need to be constructed. Expansion of the tourist base by 75 per cent needed in six hosting cities
UK Trading Relationship
Bilateral trade and contacts between the UK and Poland are growing. In 2008, the UK exported goods worth £2.9 billion to Poland. Over the same period, the UK took importsfrom Poland valued at £4.2 billion.
KEY FACTS
Official Name: Republic of Poland
Capital: Warsaw
Area: 312,68 sq km
Population: 38m (UN, 2008)
Major language: Polish
GDP (current): US$422.09bn (World Bank, 2007)
GDP growth: 6.6% (World Bank, 2007)
GNI per capita: US$9,840 (World Bank, 2007)
Inflation (consumer prices): 4.3% (2008 est.)
Labour force: 16.95m (2008 est.)
Unemployment: 9.7% (2008 est.)
Monetary unit: 1 zloty = 100 groszy
Exports to UK: £4,237.88m (HMRC 2008)
Imports from UK: £2,928.52m (HMRC 2008)
Main Industries
Machine building, iron and steel, coal mining, chemicals, shipbuilding, food processing, glass, beverages, textiles.
Main Exports
Machinery and transport equipment, intermediate manufactured goods, miscellaneous manufactured goods, food and live animals.
Main Imports
Machinery and transport equipment, intermediate manufactured goods, chemicals, minerals, fuels, lubricants, and related materials.
CONTACTS
UK Trade & Investment
Kingsgate House
66 - 74 Victoria Street
London SW1E 6SW
Tel: 020 7215 4950
Email: colin.hosey@ukti.gsi.gov.uk
Web: www.uktradeinvest.gov.uk
British Embassy
Commercial Section
Warsaw Corporate Centre
2nd Floor Emilii Plater 28
00 688 Poland
Tel: 00 48 22 311 0236
Email: warsaw.commercialsection@fco.gov.uk
Web: www.ukinpoland.fco.gov.uk
British Polish Chamber of Commerce(London)
1 Lyric Square
London W6 ONB
Tel: 0203 239 8730
Email: suzy.adcock@bpcc.org.pl
British Polish Chamber of Commerce
ul. Fabryczna 16/22
00-446 Warsaw
Tel: 00 48 22 320 0100
Email: info@bpcc.org.pl
Web: www.bpcc.org.pl
Embassy of the Republic of Poland
Trade and Investment Promotion Section
90 Gloucester Place
London W1U 6HS
Tel: 0207 317 27 02
Email: weh@polishemb-trade.co.uk
