Decoding Poland Economy
Poland is located in the Central Europe. It is the 9th largest country in Europe and 69th largest in the world. The vibrant nation is economically strong. In fact, it has one of the largest economies in Central Europe and 11th largest in the European Union (EU) giving neck to neck competition to many of its European counter parts.
Poland Economy is a high income economy, and due to low private debt, not being dependent on any export sector, strong domestic market and flexible currency, it is the only country in Europe to survive the 2000s recession.
Over the last 25 years or so, the nation has economically grown; its Gross Domestic Product (GDP) has straightaway doubled, in terms of size. In terms of the GDP, World Bank (WB) has ranked Poland 20th and has also classified it as a high income economy. The largest contributor towards its economy is its service sector.
Poland became a member of the European Union (EU) in mid 2004 and the NATO in 1999, since then many EU countries are its trading partners. Today, its neighboring country Germany is its main trading ally.
It has been reported that the country’s economy has grown maximum in 2015 out of the last four years. Despite of downgrade credit rating, many trade analysts believe the reason behind the extensive growth is domestic demand.
It has been estimated that the economy of $425 billion grew at a percentage of 3.6. The documented growth is almost twice on an average in the EU. Extensive growth in economy has translated into many significant economic growths across the Polish society.
The country’s main challenge is to accelerate economic growth and make sure that it is inclusive of the context of fast growing aging population, and accelerate technological changes. To tackle both the challenges, the main focus should be on policy formation, enhancing productivity level and creating more jobs for its people and migrants.
Some of the mutual reinforcing ingredients are investment in people, promoting innovative and dynamic business environment, maintaining and build infrastructure, and providing external support to public sector institutions.
- For the year 2016, economic freedom score is 69.3 i.e. up to 0.7 point.
- The status of economic freedom is moderately free.
- Current global ranking is 39th, and
- Regional ranking is 18th in Europe
- The credit of notable success goes to monetary freedom and open market
- Main concern is to manage labor freedom and manage government spending.
- Since 2012, the overall score change is +5.1
Significantly, in Poland, the rule of law remains well protected and respected. The level of corruption has gone down and the judiciary has become more independent of politics.