[48] (2) 628-30-41
FAX: [48] (2) 628-82-98
consulate(s) general: Krakow

Flag description: two equal horizontal bands of white (top) and red;
similar to the flags of Indonesia and Monaco which are red (top) and
white

Economy

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.)

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