Economy of Poland

The economy of Poland is an emerging and developing, high-income, industrialized social market economy that is the sixth-largest in the European Union by nominal GDP and fifth-largest by GDP. Poland has the extensive public services characteristic of most developed economies and is one of few countries in Europe to require no tuition fees for undergraduate and postgraduate education and with universal public healthcare that is free at a point of use. Since 1988, Poland has pursued a policy of economic liberalisation but retained an advanced public welfare system. It ranks 19th worldwide in terms of GDP, 20th in terms of GDP, and 21st in the 2023 Economic Complexity Index. Among OECD nations, Poland has a highly efficient and strong social security system; social expenditure stood at roughly 22.7% of GDP.
The largest component of Poland's economy is the service sector, followed by industry and agriculture. Following the economic reform of 1989, Poland's external debt has increased from $42.2 billion in 1989 to $365.2 billion in 2014. Poland shipped US$224.6 billion worth of goods around the globe in 2017, while exports increased to US$221.4 billion. The country's top export goods include machinery, electronic equipment, vehicles, furniture, and plastics. Poland was the only economy in the EU to avoid a recession during the 2008 financial crisis.
As of 2019, the Polish economy had been developing steadily for 28 years, a record high in the EU. This record was only surpassed by Australia in the world economy. GDP per capita at purchasing power parity has grown on average by 6% p.a. over the last 20 years, the highest in Central Europe. Poland's GDP has increased seven-fold since 1990. Poland's nominal GDP has increased by 500% since 2000. Poland became a one trillion dollar economy in September 2025.

History

Poland has seen the largest increase in GDP per capita both among the former Eastern Bloc countries, and compared to the EU-15. It has had uninterrupted economic growth since 1992, even after the 2008 financial crisis.

Before 1989

This article discusses the economy of post-1989 Poland. For a historical overview see:

Economy of the Polish–Lithuanian Commonwealth
Economy of the Second Polish Republic
Economy of the People's Republic of Poland
1990–2009

The Polish state steadfastly pursued a policy of economic liberalization throughout the 1990s, with positive results for economic growth but negative results for some sectors of the population. The privatization of small and medium state-owned companies and a liberal law on establishing new firms has encouraged the development of the private business sector, which has been the main drive for Poland's economic growth. The agricultural sector remained constrained by structural problems, surplus labour, inefficient small farms, and a lack of investment. Restructuring and privatization of "sensitive sectors", has also been slow, but foreign investments in energy and steel have begun to turn the tide. Also, reforms in healthcare, education, the pension system, and state administration have resulted in larger than expected fiscal pressures. Improving this account deficit and tightening monetary policy, with a focus on inflation, are priorities for the Polish government. Further progress in public finance depends mainly on the reduction of public sector employment, and an overhaul of the tax code to incorporate farmers, who currently pay significantly lower taxes than other people with similar income levels.

2008 financial crisis and Great Recession

Since the Great Recession, Poland's GDP has continued to grow. In 2009, the GDP for the European Union as a whole dropped by 4.5% while Polish GDP increased by 1.6%. As of November 2013, the size of the EU's economy remains below the pre-crisis level, while Poland's economy increased by a cumulative 16%. The major reasons for its success appear to be a large internal market and a business-friendly political climate. The economic reforms implemented after the fall of communism in the 1990s have also played a role; between 1989 and 2007 Poland's economy grew by 177%, faster than other countries in Eastern and Central Europe, while at the same time millions were left without work.
However, the economic fluctuations of the business cycle did affect Poland's unemployment rate, which by early 2013 reached almost 11%. This level was still below European average and has begun falling subsequently. As of October 2017, Poland's unemployment rate stood at 4.6% according to Eurostat.

Economic growth

In 2018, the Polish economy grew by 5.1% compared to 4.8% in 2017. Economic growth in the fourth quarter of 2018 in Poland amounted to 4.9% on an annual basis and compared to the third quarter, where GDP increased by 5.1%, it was slightly lower. During this period, investments increased by 6.7%, private consumption also increased by 4.3%, and domestic demand increased by 4.8%. The PMI index in January 2019 was 48.2 points and was higher than in December 2018 when it amounted to 47.6 points.

Data

The following table shows the main economic indicators in 1980–2024. Inflation under 5% is in green.

Labour market and wages

Unemployment in Poland became a major problem after the Revolutions of 1989, which collapsed communism in Poland, although the economy previously had high levels of hidden unemployment. The unemployment rate then fell to 10% by the late 1990s and then increased again in the first few years of the 21st century, reaching a peak of 20% in 2002. It has since decreased, although unevenly. Since 2008 the unemployment rate in Poland has consistently been below European average.
The rate fell below 8% in 2015 and 3.2% in 2019 leading to a labour deficit.

Foreign trade and FDI

With the collapse of the ruble-based COMECON trade bloc in 1991, Poland reoriented its trade. As early as 1996, 70% of its trade was with EU members. Neighbouring Germany is Poland's main trading partner today. Poland joined the European Union in May 2004. Before that, it fostered regional integration and trade through the Central European Free Trade Agreement, which included Hungary, the Czech Republic, Slovakia, and Slovenia.
Poland is a founding member of the World Trade Organization. As a member of the European Union, it applies the common external tariff to goods from other countries including the United States. Poland's major imports are capital goods needed for industrial retooling and for manufacturing inputs. The country's exports also include machinery but are highly diversified. The most successful exports are furniture, foods, motor boats, light planes, hardwood products, casual clothing, shoes, and cosmetics. Germany is by far the biggest importer of Poland's exports as of 2013. In the agricultural sector, the biggest money-makers abroad include smoked and fresh fish, fine chocolate, dairy products, meats, and specialty breads, with the exchange rate conducive to export growth. Food exports amounted to 62 billion złoty in 2011, increasing by 17% from 2010. Most Polish exports to the U.S. receive tariff benefits under the Generalised System of Preferences program. Poland ranks in the top 20 in the world both in terms of exports and imports, recording a clear trade surplus.

Rank

Country

Total Trade

Exports

Imports

Sectors

, the Polish economy is dominated by the services sector, with 615,647 registered companies, followed by 329,255 companies in finance, insurance, and real estate and 176,149 companies in retail trade.

Production industries

Before World War II, Poland's industrial base was concentrated in the coal, textile, chemical, machinery, iron, and steel sectors. Today it extends to fertilizers, petrochemicals, machine tools, electrical machinery, electronics, car manufacturing, and shipbuilding.
Poland's industrial base suffered greatly during World War II, and many resources were directed toward reconstruction. The socialist economic system imposed in the late 1940s created large and unwieldy economic structures operated under a tight central command. In part because of this systemic rigidity, the economy performed poorly even in comparison with other economies in Central Europe.
In 1990, the Tadeusz Mazowiecki government began a comprehensive reform programme to replace the centralised command economy with a market-oriented system. While the results overall have been impressive, many large state-owned industrial enterprises, particularly the rail, mining, steel, and defence sectors, have remained resistant to change and the downsizing required to survive in a market-based economy.

Energy

Pharmaceuticals

The pharmaceutical market is worth 50 billion PLN as of, an increase of 9.5% over the previous year.
The non-prescription medicine market, which accounts for about one-third of the total market value, was worth PLN 7.5bn in 2008. This value includes drugs and non-drugs such as dietary supplements, cosmetics, dressings, dental materials, diagnostic tests, and medical devices. The prescription medicines market was worth PLN 15.8bn.

Mining

, the country was the world's 3rd largest producer of rhenium, 5th largest producer of silver, the 13th largest producer of copper, the 14th largest producer of sulfur,and the 14th largest producer of salt.

Agriculture

Agriculture employs 8.2% of the workforce but contributes 3.8% to GDP, reflecting relatively low productivity. Unlike the industrial sector, Poland's agricultural sector remained largely in private hands during the Polish People's Republic. Most of the former state farms are now leased to farmer tenants. Lack of credit is hampering efforts to sell former state farmland. Currently, Poland's 2 million private farms occupy 90% of all farmland and account for roughly the same percentage of total agricultural production. Farms are small—8 hectares on average—and often fragmented. Farms with an area exceeding 15 ha accounted for 9% of the total number of farms but cover 45% of total agricultural area. Over half of all farm households in Poland produce only for their own needs with little, if any, commercial sales.
Poland is a net exporter of processed fruit and vegetables, meat, and dairy products. Processors often rely on imports to supplement domestic supplies of wheat, feed grains, vegetable oil, and protein meals, which are generally insufficient to meet domestic demand. However, Poland is the leading EU producer of potatoes and rye and is one of the world's largest producers of sugar beets and triticale. Poland is also a significant producer of rapeseed, grains, hogs, and cattle. Poland is the sixth-largest producer and exporter of apples in the entire world.