Solving economic problems was a basic problem independent state: in the country a hyperinflation raged (over the 600% in 1990), the huge foreign indebtedness didn’t allow for investments. Additionally such factors hampered situation, like hidden unemployment, outdated and ineffective industry, backward farming.
The progressing depreciation economy, lack of outside providing credit and paralysis of state institutions led the GDP to a country’s budget deficit reaching 12% (of gross domestic product). The foreign indebtedness for the end of the year exceeded 40 bn USD. The introduction Deprived financial security full liberalization food market led to racing hyperinflation. For her indicator at the end of 1989 achieved 340 percent, by the average foot for five recent months in height 1000 %!!! Prices within one year rose by 640% – at negative real interest rate.
Poland made up its mind to implementing so-called plan of Balcerowicz, authorships contemporary minister of finance which assumed the liberalization internal prices, import increase, sharpening wage control and financial policy towards enterprises, introducing interest rate higher than inflation, stabilizing dollar exchange rate and introducing his exchangeability. In the end of Polish economy stabilized and opened to world. A banking system and a financial-credit politics were reformed. In Poland a capital market and the labour market were created.
Amongst system reforms initiated privatizations had a great importance, become independent of enterprises and stimulating internal competition. Politician of privatizing national wealth, implementing free market principles and radical reducing a country’s budget deficit started bringing effects. In 1992 inflation fell to 43%, and in consecutive years achieved single-digit value (at the end 2001 fell below 4 %). Economic successes next governments induced creditors to reduction in the Polish debt against the 50%, but west companies – for investing in Poland. In 1991 in Warsaw a stock exchange moved. The privatization enterprises quoted on Warsaw parquet is at present bigger from all other fairs in Centre Europe together taken, inclusive with the stock exchange in Vienna.
Consistent functionings of all next Polish governments caused, that in quite short span of time the Polish economy happened one from the most dynamically developing in Europe.
Poland is a champion of transformation amongst states former Eastern bloc and with leader economic dynamics in the European Union, both before crisis of 2008-2012 years as well as in the course of lasting him!!!
GDP 1989 – 2012
Total of increase GDP in period from 1989 to 2012 (in constant prices) took out in Poland 121 %. It is high overtaking result all pokomunistyczne countries of Central and Eastern Europe. Slovakia is taking second place, where GDP rose by 71 %. Third Estonia with the height 47%, next Czech Republic with height on level 41% and Hungary of 29%.
The one fast run of Poland to prosperity countries of Europe West course contributed to considerable reducing distance which in 1989 separated Poland from the richer Czech Republic, Hungary and Slovakia. Poland surpassed Hungary in 2012 being in 1989 about passed 50% with poorer country in income to one resident.
In 1989 Poland was on comparable level of development as Ukraine, at present however x is 4 of you richer.
The economy in dynamics development beat all tigers up”, BRICS countries (Russia, Brazil, RSA) and biggest economies amongst emerging markets (Mexico, Malaysia, Chile or Turkey).
Polish GDP each taking purchasing power into account tripled from 7.300 in 1995 to 21.000 in 2012. Thanks yes for big increase recently the World Bank and OECD changed classification of Poland from country about average income to country about high income, placing amongst the most developed economies of world.
Poles live better and better
In the same time Poles managed also to pick quality life and level satisfaction up, among others, thanks open border, for growing incomes and the Internet which let society participate in the global technological progress in the culture and learning. Quality of life, reflected e.g. in ranking OECD “Better Life Index” based on measurement among others quality of environment, level of quality crime, education or health, is even higher than it is indicating level of income: amongst 34 countries Poland is an OECD on 24 place of satisfaction from living standard.
The XXI age – golden age of the Polish development
Long-term forecasts of European Commission, OECD, PWC and bank Goldman Sachs are suggesting that for about 20 years Poland will to say least still be brawny more quickly than the West. Thanks to that, to 2030 a per capita income will reach 85-95 on level % to UE-15.
To 2030 the GDP of Poland including purchasing power parity will rise from 813 bn USD up to 1415 bn USD.
The PwC report published from 2006 for first time included Poland, which as leading country of European Union in the region of Europe Centre-eastern, was on list of 20 strong economies world, filling eighteenth position. The Polish GDP including purchasing power is ahead of a gross domestic product Argentina and Saudi Arabia in 2011.
According to PwC analyses the country still will be unrolling and in 2030 the Polish GDP including purchasing power will reach level today’s gross domestic product such meaning economies, like Sourh Korea or Canada.
At beginning process of reforms from 1990 the Polish GDP each according to market exchange rates constituted resident only 8 % of German and considering purchasing power parity 32 % Current indicators comparing Poland and Germans are taking out appropriately 30 % and 54 %.
In 2013 foreign consumers paid euro as many as 152.8 bn behind Polish products. Compared with 2012 sales abroad rose with whole by 6.5% as far as by 11.5%
In 1989, when communist economy collapsed, export to global markets took Poland out not quite 9 bn USD, what export earnings reached communist countries, to approximately the 4-5 bn USD altogether it was only worth 14 bn, in addition within 2 consecutive years majority of export into communist countries disappeared.
The first decade transformation wasn’t simple. Thanks to laborious effort a yr managed admittedly to double export into 32 bn USD in 2000 but at much faster import increase. Since Poland imported for half more than she exported, trade deficit amounted to as many as 17 bn USD – what answered over 10% domestic GDP and threatened with bending rate of Polish currency. In balance of payments managed to bring crisis under control, what on eve of accession to Union in 2004 trade deficit fell to the 7% thanks to GDP.
But export in 2003 amounted to still only a 54 bn USD what after counting resident each still put Poland in tail of Europe.
In 2013 Poland sold goods worth 203 bn USD abroad it is putting Poland on 26 for place amongst largest exporters of world.
The USA and Germany are exporting 8 times as many from Poland, France of 3 times more, Spain for the half more. In 1990 export was a USA of as many as 30 times but France of 15 times bigger than Polish. Austria which then exported 4 times as many than Poland, stayed far back with sale its goods to foreign markets, same as majority of European countries. Still before 10 years export counted per capita Germany, leader of the world export, was over sixfold bigger than Polish. In 2013 – already only three times.
Poland is making a note of the systematically growing surplus in trade with developed countries (in 2012 – 30 bn USD – the most with Great Britain and Germans)
Also a structure export changed. In 1989 in it raw materials and semi-finished products were decisive (coal was the greatest export hit). Today in Polish export industrial goods are dominating and automotive industry is largest exporter.
From 1989 work output in the Polish industry increased five times, that is grew after 7 % annually.
The modern Polish industry occurred mainly thanks to the activity of international concerns, building their new factories in Poland or modernizing privatized units. The total value of direct investments in Poland exceeded 250 bn USD.
Companies also began expansion into foreign markets with Polish capital (participation of small and average companies in export is similar like Germany), which almost market of Polish consumers became 38 m for too small.
Polish factories produce most in Europe or at the lead of production:
- TV sets and the equipment audio/video devices
- washing machines, refrigerators and white goeter
- buses and trams
- car sub-assemblies
- window frames and door
- yachts and helicopters
Poland is also leading field in production in art food which value of export will bring closer oneself up to the 20 bn euro annually.
Poland economy has unusually strong foundations permanent and sustainable development. The national income is being made both through quickly developing industry, as well as agricultural and tourist industry and business services, which every individually they are developing surpluses and take note dynamic growth of sale every year what causes, that slowing economy down in some section for not a distress for increase in GDP, even during heavy crisis which touched world economy upon in years 2008-2012 for economy is an Additional safety component almost for 40 m consumers on internal market and safe and stable banking system at head with National Bank Polish having one hundred several dozen billion of dollars foreign currency reserves.