Economy - overview:
Poland has pursued a policy of economic liberalization since 1990 and today stands out as a success story among transition economies. Before 2009, GDP had grown about 5% annually, 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 fell rapidly to 9.8% in 2008, but climbed back to 11% in 2009, and remains above the EU average. In 2008 inflation reached 4.3%, more than the upper limit of the National Bank of Poland's target range, but fell to 3.4% in 2009 due to global economic slowdown. Poland's economic performance could improve over the longer term 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 2007-09. The PO/PSL coalition government, which came to power in November 2007, plans to further reduce the budget deficit in 2010 and has also announced its intention to enact business-friendly reforms, reduce public sector spending growth, lower taxes, and accelerate privatization. The government, however, has moved slowly on major reforms. Pension and health-care bills passed through the legislature, but the legislature failed to overturn a presidential veto.

GDP (purchasing power parity):
$686.2 billion (2009 est.)