Poland

Economy - overview: In 1996, Poland continued to make good progress in the difficult transition to a market economy. The transition began on 1 January 1990, when the new democratic government instituted shock therapy by decontrolling prices, slashing subsidies, and drastically reducing import barriers. Although real GDP fell sharply in 1990 and 1991, in 1992 Poland became the first country in the region to resume economic growth with a 2.6% increase. Growth advanced to 3.8% in 1993, 5.2% in 1994, 6.5% in 1995, and 6.0% in 1996. Most of the growth since 1991 has come from the booming private sector, which now accounts for more than 60% of GDP, attributable mostly to the creation of new private firms. Large-scale industry still remains largely in state hands. The trade and current account balances officially are in deficit but in fact both have comfortable surpluses because of large, unrecorded sales to cross-border visitors. The government has promised to extend privatization and social welfare reform and to maintain fiscal and monetary discipline. As for external debt, the burden was sharply reduced by reschedulings and write-offs of both private and official debt during 1991-95. GDP: purchasing power parity - $246.3 billion (1996 est.) GDP - real growth rate: 6% (1996 est.) GDP - per capita: purchasing power parity - $6,400 (1996 est.) GDP - composition by sector: agriculture : 6% industry: 40% services: 54% (1996 est.) Inflation rate - consumer price index: 18.8% (1996 est.) Labor force: total: 17.662 million (1996 est.) by occupation: industry and construction 32.0%, agriculture 27.6%, trade, transport, and communications 14.7%, government and other 25.7% (1992) Unemployment rate: 13.3% (yearend 1996) Budget: revenues: $37.1 billion expenditures: $40.6 billion, including capital expenditures of $NA (1996 est.) Industries: machine building, iron and steel, coal mining, chemicals, shipbuilding, food processing, glass, beverages, textiles Industrial production growth rate: 8.5% (1996 est.) Electricity - capacity: 29.64 million kW (1994) Electricity - production: 127.42 billion kWh (1994) Electricity - consumption per capita: 3,124 kWh (1995 est.) Agriculture - products: potatoes, milk, fruits, vegetables, wheat; poultry and eggs; pork, beef Exports: total value: $30.9 billion (f.o.b., 1995) commodities: intermediate goods 38%, machinery and transport equipment 23%, consumer goods 21%, foodstuffs 10%, fuels 7% (1996 est.) partners : Germany 35.7%, Netherlands 5.9%, Russia 5.4%, Italy 4.9% (1994) Imports: total value: $34.6 billion (f.o.b., 1995) commodities: machinery and transport equipment 32%, intermediate goods 20%, chemicals 15%, consumer goods 9%, food 9%, fuels 8% (1996 est.) partners: Germany 27.5%, Italy 8.4%, Russia 6.8%, UK 5.3% (1994) Debt - external: $45.8 billion (1996 est.) Economic aid: recipient: Western governments and institutions pledged $22 billion in grants and loans during 1990-94, but much of the money has not been disbursed Currency: 1 zloty (Zl) = 100 groszy Exchange rates: zlotych (Zl) per US$1 - 2.8158 (January 1997), 2.4250 (1995); note - a currency reform on 1 January 1995 replaced 10,000 old zlotys with 1 new zloty; 22,723 (1994), 18,115 (1993), 13,626 (1992) Fiscal year: calendar year