The Poland economy is the eighth largest
economy of the European Union and it is also the largest among the former Eastern
Bloc members of the European Union. Ever since 1990, Poland has followed
a policy of economic liberalization and the Poland economy was the
only one in the European Union who managed to avoid a recession through
the period of 2007-2008 economic decline. World Bank has classified the Poland
economy as a high-income economy. Poland Prime Minister Beata Szydlo won
a parliamentary majority in 2015. The government has been in conflict
with the EU over changes brought in the judiciary and EU attempting to
enforce compulsory migrant quotas. Poland has a very strong manufacturing
sector which has helped it create the sixth largest
economy in the European Union. Economic Freedom The economic freedom score for
Poland is 68.5, which means the Poland economy is the 45th on the
list free economies of 2018. Its total has improved by 0.2 point,
due to better fiscal health and labor freedom scores which outpaced
the decline in government integrity. Poland is ranked 21st among 44 European
countries and its overall score is lower than below the regional average, but
it is higher than the world average. Ways of Law Poland identifies and implements secured
interests in property for its citizens. The judiciary system of the
country is independent but is quite slow and at times, work
under political pressure. In addition, the court system is burdensome,
the administration is poor, and they do not have enough staff to run the
things smoothly and at a faster pace. Moreover, anti-corruption
rules and regulations are not always implemented and enforced
with complete effectiveness. Quite a few noteworthy corruption
inquiries emerged in 2016 revealing the corruption related
problems in the system. GDP, Tariffs, and Taxes The topmost rate of the
income tax rate is 32 percent and the flat rate of
corporate tax is 19 percent. The overall tax burden is 32.1
percent of total domestic proceeds. In the last 3 years, the
government expenditure has been 41.7 percent
of total GDP. The budget deficits have an
average of 2.8 percent of GDP. Public debt is 54.2 percent of GDP. The shared value of exports and
imports is 101 percent of GDP. The average applied tariff
rate is 1.6 percent. Challenges The Poland economy is facing
three main challenges and they are a scarcity
of labor in the economy, an operational
weakening in public finances, and the forthcoming
political timetable. First, the scarcity or
shortage of labor will sooner or later weigh down
severely on GDP growth and be worsened by the
retirement of a substantial part of the current
working personnel. The lack of working hands
could have a negative effect on production
capabilities and investment, which will eventually increase
pressure on the Government to encourage immigration, which might
come mainly come from Ukraine. Second, the plans created
by government for managing expenditures, which comprise of
increases in social benefits and public investment along
with the reduction in the legal retirement age, could wear down the
organization of public finances. Third, the consolidation the fiscal
position might be a difficult task provided that local, presidential, and parliamentary
elections are scheduled for in 2019.

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2 thoughts on “Inside Economy of Poland Crash Course”

  1. The thing that is great is that Poland has 1st place of the most beautiful girls in the world XD

    Germany is 11th
    USA is 2th
    UK is 6th
    Sweden is 4th
    India is 13th
    Japan is 7th
    Brasil is 3rd

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