National economy of Poland - industries, GDP and prosperity level

Poland’s economic situation is recognized as a true world phenomenon. Within the global crisis and incredibly complex financial problems, Poland managed to build a powerful and effective developmental program. The dynamics of development is improving every year. Even at the end of the twentieth century, the country’s GDP was gradually decreasing, although most European countries had a quite stable economic situation during this period. Everything however changed dramatically right after the Republic was admitted to the European Union. Perhaps, this is the first country that was able to adapt as quickly as possible to all the features of this Union and to extract the maximum benefit from it. According to data for the last year, the ratio of Poland’s GDP compared with that of other European countries exceeds seventy percent.

It cannot be said that the global crisis of 2007 did not affect Poland in any way. However, GDP in this country did not fall, but instead made meager increments of 0.1%; but it increased. It is worth noting that the local population of Poland over the past two decades has developed a fundamentally different attitude towards the state’s financial situation as well as their own. Now every citizen is trying to get as much profit as possible from various changes in the external and domestic economy. Optimal conditions have been created in the republic, even for the development of medium and small scale businesses. This also yields a commensurate benefit when calculating annual GDP. According to the World Bank rating, Poland is ranked 25th in the world rating of countries for optimal business conditions. Please note that only 7 years ago, Poland ranked 80th in the same poll.

Industrialization is at a fairly high level in Poland. Its main branches are mechanical engineering, ferrous metallurgy, coal mining, as well as the textile and chemical sector. Oil products are actively produced in the country and also, various cars and marine vessels are being built (the largest centers are located in Szczecin and in Gdansk). A fairly large percentage of the total number of manufactured machines and other industrial equipment goes into world exports. In the country, you will see that there is a gradual growth in the development of industrial production. In comparison with the data of ten years ago, the level grew by about 5.5%. It should be noted that the country has fairly large deposits of brown coal, copper ore, zinc, lead, and sulfur. Also as of today, food grade sodium and natural gas are actively extracted. Due to the large number of forests, the wood processing industry and logging are also flourishing. Copyright www.orangesmile.com

About forty percent of the total number of citizens lives in rural areas, and most of them are involved in the agricultural sector. Despite the fact that the importance of agriculture since the accession to the European Union gradually began to decrease due to the quota, this sector remains the main priority for many regions. In total, there are about three million peasant farms in the republic. This is so because the private form of ownership in still prevalent. Agrarian production is rather unstable; it is mostly due to unpredictable weather conditions. For example, during a warm spring, some days may be accompanied by unexpected frost. As a result of this, most farmers lead a mixed type of agricultural production and are engaged not only in farming, but also in animal husbandry.

Now, agriculture accounts for no more than five percent of GDP. Nevertheless, most of the agricultural land generates products exclusively for domestic consumption. Dairy products, meat, beets, potatoes and grain are exported. The lion’s share of agricultural imports is occupied by wheat and vegetable oil. Since the end of the last century, much attention has been paid to the marine industry in Poland. Recently, the Baltic Sea makes it possible to increase the country’s total freight transportation. The annual catch of fish and seafood is about seven hundred thousand tons.

Poland’s energy sector is also quite profitable. About 90% of electricity is produced at state-owned thermal power plants. The greater part uses coal as fuel, while the smaller part uses lignite. Wind and hydroelectric power plants generate less than three percent of electricity. The country’s oil reserve is about two million tons. However, all domestic needs of the country are being met solely thanks to importation. Also, most of the natural gas is imported, as gas produced in the country is able to meet only a third of domestic demand. Most of the banks that are located in Poland have foreign owners with a huge deposit base. This brings quite a big profit to the country. The banking system is so far strong, stable and continues to improve.

Unemployment rate in Poland reduces yearly and now makes up just over seven percent of the total able-bodied number of citizens. The gross product per capita is about 12 thousand dollars. The country’s economy also owes much of its development to the high literacy level of her population. The country also has a high level of social activity among her citizens. The poverty rate of the population is very low, and the average life expectancy borders around 65 years of age. Crime rate is also minimal, with the violence being only 3.3% despite the fact that these data take into account the disorders associated with migrants. Judging by the data of world economists, Poland is in the prime of its economy and will continue to develop in the coming decades.