If you are an entrepreneur or small to medium sized business you will find a range of information and expert professional advice you need to do business in Poland. Need professional advice? Potential investors are advised to consult one of our professional services member firms at an early stage as they will be able to ensure that all relevant matters are identified. To contact our Polish member firms, please click here. If you require professional advice in a city not listed, please contact the MSI Secretariat directly.   Poland Fast Facts GDP (PPP) US$624.6 billion GDP per capita (PPP) US$16,200 GDP real growth rate 6.5% Inflation 4.1% Local currency Zloty (PLN) Exchange rate 2.81 PLN :1 US$ Capital city Warsaw Population 38,500,696 (July 2008 est.) Ethnic groups Polish 96.7%, German 0.4%, Belarusian 0.1%, Ukrainian 0.1%, other and unspecified 2.7% (2002 census) Language Polish 97.8%, other and unspecified 2.2% (2002 census) Religion Roman Catholic 89.8% (about 75% practicing), Eastern Orthodox 1.3%, Protestant 0.3%, other 0.3%, unspecified 8.3% (2002) Area size 312,683 sq. kilometres Top import sources Germany 29%, Russia 9.6%, Italy 6.4%, Netherlands 5.7%, France 5.4% (2006) Top export markets Germany 27.2%, Italy 6.6%, France 6.2%, UK 5.7%, Czech Republic 5.6%, Russia 4.3% (2006) Unemployment rate 12.8%

All figures as of 2007 unless stated.

Poland's economy
Poland has pursued a policy of economic liberalization since 1990 and today stands out as a success story among transition economies. In 2007, GDP grew an estimated 6.5%, based on rising private consumption, a jump in corporate investment, and EU funds inflows. GDP per capita is still much below the EU average, but is similar to that of the three Baltic states. Since 2004, EU membership and access to EU structural funds have provided a major boost to the economy. Unemployment is falling rapidly, though at roughly 11% in December 2007, it remains well above the EU average. Tightening labor markets, and rising global energy and food prices, pose a risk to consumer price stability. In December 2007 inflation reached 4.1% on a year-over-year basis, or higher than the upper limit of the National Bank of Poland's target range. Poland's economic performance could improve further if the country addresses some of the remaining deficiencies in its business environment. An inefficient commercial court system, a rigid labor code, bureaucratic red tape, and persistent low-level corruption keep the private sector from performing up to its full potential. Rising demands to fund health care, education, and the state pension system present a challenge to the Polish government's effort to hold the consolidated public sector budget deficit under 3.0% of GDP, a target which was achieved in 2007. The PO/PSL coalition government which came to power in November 2007 plans to further reduce the budget deficit with the aim of eventually adopting the euro. The new government has also announced its intention to enact business-friendly reforms, reduce public sector spending growth, lower taxes, and accelerate privatization. However, the government does not have the necessary two-thirds majority needed to override a presidential veto, and thus may have to water down initiatives in order to garner enough support to pass its pro-business policies.

Source: CIA World Factbook.

International trade
Poland is Central Europe's leading country in terms of attracting foreign direct investment. Over $US52 million has flowed into Poland, of which US$10 billion was invested in 2000. This figure represents 40% of the capital invested in Central Europe. Poland offers a number of benefits including: the biggest market size in Central Europe; one of the lowest labour costs on the continent; growing integration with the world economy; the successful privatisation of state-owned enterprises.

Unlike many of its neighbouring countries, Poland has not experienced any currency or fiscal crises, and its stable and rapidly growing economy have turned it into one of investors' most desired target locations. According to a report published by the Economist Intelligence Unit in November 2001, Poland will remain one of the major beneficiaries of the 2001-2005 investment boom resulting from an improved business environment and cost-cutting pressure on companies in Western Europe.

Source: Poland.com

Legal and judicial system
Poland's legal system consists of a mixture of Continental (Napoleonic) civil law and holdover communist legal theory. Changes are being gradually introduced as part of the broader democratisation process. There is limited judicial review of legislative acts although under the new constitution, the Constitutional Tribunal ruling became final as of October 1999. Court decisions can be appealed to the European Court of Justice in Strasbourg.

The judicial system consists of a Supreme Court and a Constitutional Tribunal

Government
Poland has a bi-cameral National Assembly which consists of the Sejm(460 seats, members elected using proportional representation to serve four-year terms), and the Senate (100 seats, members elected by majority vote on a regional basis to serve four-year terms). The next elections to both houses will be held in September 2005.

Poland is a parliamentary republic and is made up of 16 provinces. Its new constitution was adopted in 1997, and the government consists of a chief of state President Lech KACZYNSKI and prime minister Donald TUSK (since 16 November 2007)
The prime minister is appointed by the President who has executive powers and is in turn elected by popular vote for a five-year term. The President can veto legislation or send it for a review to the Constitutional Tribunal. The Sejm needs a three-fifths majority to override a presidential veto.
 

Information obtained from The Economist and The World Factbook, April 2008