e recently
initiated, have stalled. Reforms in health care, education, the
pension system, and state administration have resulted in
larger-than-expected fiscal pressures. Further progress in public
finance depends mainly on reducing losses in Polish state
enterprises, restraining entitlements, and overhauling the tax code
to incorporate the growing gray economy and farmers, most of whom
pay no tax. The previous Socialist-led government introduced a
package of social and administrative spending cuts to reduce public
spending by about $17 billion through 2007, but full implementation
of the plan was trumped by election-year politics in 2005. The
right-wing Law and Justice party won parliamentary elections in
September, and Lech KACZYNSKI won the presidential election in
October 2005, running on a state-interventionist fiscal and monetary
platform. Poland joined the EU in May 2004, and surging exports to
the EU contributed to Poland's strong growth in 2004, though its
competitiveness could be threatened by the zloty's appreciation. GDP
per capita roughly equals that of the three Baltic states. Poland
benefited from nearly $23.2 billion in EU funds, which were
available through 2006. Farmers have already begun to reap the
rewards of membership via booming exports, higher food prices, and
EU agricultural subsidies.

GDP (purchasing power parity):
$542.6 billion (2006 est.)

GDP (official exchange rate):
$265.4 billion (2006 est.)

GDP - real growth rate:
5.3% (2006 est.)

GDP - per capita (PPP):
$14,100 (2006 est.)

GDP - composition by sector:
agriculture: 4.8%
industry: 31.2%
services: 64% (2006 est.)

Labor force:
17.26 million (2006 est.)

Labor force - by occupation:
agriculture: 16.1%
industry: 29%
services: 54.9% (2002)

Unemployment rate:
14.9% (November 2006 est.)

Population below poverty line:
17% (2003 est.)

Household income or consumption by percentage share:
lowest 10%: 3.1%
highest 10%: 26.7% (2002)

Distribution of family income - Gini index:
34.1 (2002)

Inflation rate (consumer prices):
1.3% (2006 est.)

Investment (gross fixed):
19.2% of GDP (2006 est.)

Budget:
revenues: $62 billion
expenditures: $71.25 billion; including capital expenditures of $NA
(2006 est.)

Public debt:
49% of GDP (2006 est.)

Agriculture - products:
potatoes, fruits, vegetables, wheat; poultry, eggs, pork,