Poland Economic Structure

 Poland economic structure has undergone a strict and much needed overhauling since 1990. Although the country’s GDP growth has consistently been healthy, its GDP per capita is still much below the average of the EU, which Poland joined in 2004 but the GDP per capita figure matches that of the three Baltic states.[br]

 Poland economic structure has undergone a strict and much needed overhauling since 1990. Although the country’s GDP growth has consistently been healthy, its GDP per capita is still much below the average of the EU, which Poland joined in 2004 but the GDP per capita figure matches that of the three Baltic states.[br]

Poland Economic Structure:

Poland economic structure has been focused on the privatization of small and medium state-owned companies and the liberalization of laws for establishing new firms.

 

Services still lead the way when it comes to adding to the gross domestic product (GDP).

 

Here is how the break up looks like: 

• Agriculture: 4.6%

• Industry: 28.1%

• Services: 67.3%(as of 2009 estimates)

Agriculture: This sector is primarily run privately and accounts for 5% of the GDP and occupies more than 17.4% of the workforce. Self-sufficiency in food products is a commendable achievement of Poland. The country has an abundance of crops such as potatoes, sugar beets, rye and wheat. Poland is also relatively rich in natural resources, primarily coal, sulfur, copper, silver, lead and zinc. The sector also involved in food and beverage processing, shipbuilding and the manufacture of machinery, iron and steel products, chemicals, glass and textiles. Structural problems, surplus labor, inefficient small farms, and lack of investments affect this sector. Although slow progress has been made in the restructuring and privatization of sub-sectors such as coal, foreign investments in energy and steel in the recent past have improved the scenario.

Industry: This sector was earlier state controlled and privatized in the early 1990s. Before the World War II, coal, textile, chemical, machinery, iron, and steel sectors made up Poland’s industrial base. However, the base now has expanded to include fertilizers, petrochemicals, machine tools, electrical machinery, electronics, cars and shipbuilding. Industry employed roughly 29% of the labor force as of 2009.[br]

 

Ever since joining the EU, Poland is a part of the global tourism market. It is the 17th most visited country by foreign tourists in 2008, and tourism contributes significantly to the country’s overall economy. The most popular cities are Warsaw, Kraków, WrocÅ‚aw, PoznaÅ„ and Lublin.

 

Poland’s economic performance will have challenges to tackle such as incompetent commercial court system, inflexible labor code, rising demands to fund health care, education, and the state pension system.