Poland 

Poland country policy

Policy established 01 May 2012

• Early warning signal 1500 mln euro
• - of which was used as at 2012-04-30 0 mln euro
• Open without restrictions

Country class: 0

Poland country facts

Atradius Dutch State Business Economic Research
Country Report last updated 30 September 2011
Country POLAND 

Political Situation
Stable 

Head of state
President Bronislaw Komorowski. 

Form of government
Coalition of the Civic Platform (PO) and the Peasants Party (PSL), headed by p.m. Donald Tusk.
 
Internal Economic Situation
Steady Recovery

General situation
Poland was in 2009 the only EU-economy that escaped a recession, owing to a moderate domestic demand fall and   an expansionary government policy, whilst net exports surged; the banking sector turned out relatively healthy. Real GDP increased by 1.8% in 2009, 3.8% (estimated) in 2010 and around 4% (projected) in 2011. Inflation is around 4% but will decline with more favourable international commodity prices, lower domestic demand and the effect of fiscal tightening. Stable banking sector, largely in hands of  foreign owned institutions; however, risen level of NPLs in foreign currencies, as 63% of mortgages in foreign currencies (of which 87% in Swiss Franc). Less high corruption: 41th of 178 on the CPI Index 2010 (was 49). 
 
External Economic Situation
Reasonable 

Main sources of foreign exchange
Machinery and transports (42%), metal products (13%), chemicals (14%), agriculture (8%); EU-/workers’ transfers.

Main foreign markets
EU (79%, of which Germany 26%), Russia (9%).

Main expenses of foreign exchange
Capital goods (38%), intermediate products (22%).

 
Balance of payments 
In 2009 imports dropped much faster than Polish exports, contributing to a strongly improved trade position and less high current account deficits. These deficits are financed by FDI-inflows and (private sector) borrowing abroad. Since early 2011 nominal trade weighted exchange rate steady, but nominal rate volatile and weaker against $ and euro.