Market

POLAND'S ECONOMY

Poland is Central and Eastern Europe's largest and most dynamic economy.

A number of factors are accelerating foreign investment in Poland. Poland is a stable political and economic environment with a world class banking system. Its financial markets are robust and well regulated, with sizable foreign investment in publicly traded Polish companies.

Poland's labor force is highly educated and its infrastructure well developed. Compared to Western Europe, the costs of doing business are much lower. Government economic policy and incentives are focused on stimulating growth.

Poland's GDP grew by 1.6% in 2013. It is expected to grow by 2.9% in 2014 and by 3.1% in 2015. The government continues to keep its reference interest rate at a record low of 2.5% to encourage further growth.

There is a healthy and growing domestic economy in Poland. Consumer purchasing power continues to grow. In 2013, the average salary in Poland increased by 3.2% over 2012. Average salaries are expected to increase by 3.9% this year and 4.6% in 2015. Retail sales in 2013 increased by 2.5% and were up by 5.9% year over year in December 2013.

The export economy also continues to grow with the main focus on Western Europe. Germany and the UK account for over one-third of Polish export volume.

Poland continues to be a major beneficiary of European Union funds. An allocation of 106.8 billion euros to Poland by the European Union between 2014 and 2020 is expected to be a major stimulus for economic growth.