Poland’sPoland’sEconomic PerformanceEconomic Performance

July 15th 2014, Sarajevo

Krystyna Żukowska-EfendićPress, Information and Cultural OfficerEmbassy of the Republic of Poland

Poland – Key FactsPoland – Key Facts

Area: 312 thousand km2 - 6th in European Union, 68th in the world

Population: 38.5 mln - 6th in European Union, 33rd in the world

Currency: Polish Zloty - PLN (EUR 1 ≈ PLN 4.10; US $ ≈ 3.04 PLN)

GDP total: $513.7 billion (nominal, 2013)

GDP per capita PPP: $21,118 (PPP, 2013)(purchasing power parity)

Economic growth (1st quarter 2014): 3.4%

Average gross salary: €975.96

Membership: OECD, WTO, NATO, EU, Schengen Zone

• After the fall of communism successful economic and political transformation. 25 years of freedom

• 15 years of Poland in NATO. • 10 years of Poland in EU.

Stable and growing economy• According to the EUROSTAT estimates for 2013 Poland was one of the

fastest growing countries in the EU.

• GDP growth in Poland is expected accelerate to 2.5% in 2014 and 2.9% in 2015.

• in 2012 Polish consolidated public debt amounted to 55.5% of GDP while for EU28 countries it reached 85.1%.

Competitive AdvantagesCompetitive AdvantagesLocation & economic fundamentals strategic location in continental Europe part of trans-European transportation corridor third fastest growing EU country in 2010 38 million consumers

Labor force young, well-educated work force ca 11% of university students in the EU 455 universities & high education schools language proficiency increasing labour productivity

Investment incentives tax exemptions in 14 Special Economic Zones grants co-financed from the EU (EUR 90 bn)

1000 km radius

250 mln people

2000 km radius

550 mn people

Poland’s Poland’s GDP GDP growthgrowth

Labour market. Labour market. Unemployment rate in PolandUnemployment rate in Poland

• Corporate Income Tax (CIT) rate 19%

• Personal Income Tax (PIT) rate18% and 32%

• Value added tax (VAT) basic rate: 23%reduced rates: 8%, 5% export rate: 0%

• Social Security Tax paid by employer

between 19.48% and 22.14%

Tax rates Tax rates

34.3 40.3 43.3 47.4 59.6 71.4 87.9 101.8 116.2 98.2 120.4 136.760

70

80

90

100

110

120

130

140

0

20

40

60

80

100

120

140

160

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

exports in value

Data: Poland’s CSO

Polish exportsPolish exports

EU

R b

ln

53.0 56.1 58.2 60.2 71.3 81.2 100.8 120.4 142.5 107.5 134.2 152.60

20

40

60

80

100

120

140

160

180

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

EU

R b

ln

imports in value

Data: Poland’s CSO

Polish importsPolish imports

Foreign Direct InvestmentForeign Direct Investment

Special Economic ZonesSpecial Economic ZonesDefinition• a special economic zone (SEZ) is a designated area in

which manufacturing or distribution activities can be conducted on preferential terms

• 14 SEZ in Poland, with several subzonesThe purpose• support regional developmentTotal area• up to 20 000 hectares Time of operation• 31st December 2020Permits to conduct activities in SEZ• issued by the authorities of each SEZ

Benefits from obtaining a permit to conduct activities in SEZ :•eligibility for income tax exemption •plot of land prepared for an investment project•free assistance in dealing with formalities relating to the investment project

Why Poland? SummaryWhy Poland? Summary

Availability of skilled human resources

Economic and political stability

Effective incentives system including EU-Funds

Strategic location

Thank you!

Hvala!

Dziękuję!