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The big picture for UK and foreign investors interested in Poland. Key macroeconomic indicators updated monthly.\u00a0 [GUS = G\u0142\u00f3wny Urz\u0105d Statistyczny \u2013 Statistics Poland]<\/em><\/p>\n <\/p>\n Polish economy growth in 2024, at the start of this year expected to grow by 3.0% t0 3.5%, is underperforming those expectations. The consensus of analysts from banks and financial institutions are now forecasting GDP to grow by between 2.0% and 3.0%. CPI inflation, which had been as low as 1.9% in March of this year, has accelerated as the government removed the zero % VAT rate on food (introduced during the pandemic and maintained after the start of Russia\u2019s full-scale invasion of Ukraine), and is forecast to stabilise at around 5% by year-end. The unblocking of EU Recovery and Resilience Facility funds (\u20ac76 billion) will be a major boost to the economy in terms of new renewable-energy and infrastructure projects, although the effect has yet to reach the construction sector, which is still contracting in terms of output. Rising consumer spending, driven by wage growth that is outpacing inflation, is expected to contribute to GDP growth this year.<\/p>\n The new government, elected last autumn, is seen as more business-friendly, more willing to listen to foreign investors\u2019 concerns, less likely to interfere politically in the markets, and focused on improving the quality and predictability of the legislative process. Questions facing investors in Poland centre around the future of Russian aggression; an end to hostilities would signal a major reconstruction boom in Ukraine, with Poland a natural logistics platform and partner for that process. Another area of uncertainty is the state of Western Europe\u2019s \u2013 specifically Germany\u2019s \u2013 economic prospects, as Poland\u2019s manufacturing depends heavily on those markets. Trade in goods for 2023 show Poland with a surplus of \u20ac10.5 billion; however, recent figures show value of goods imported and exported both falling. Poland also maintains a modest current account surplus. As of the first five months of 2024, the UK is Poland\u2019s only Top Five export market to be growing in value and in its share in the overall structure of Polish exports.<\/p>\n Demographics and the labour market<\/strong><\/p>\n Unemployment is likely to stay at or near record low levels; while firms are less likely to be recruiting this year, fewer young Poles will be entering the labour market. Wage pressure is likely to continue as retention of skilled employees continues to be a big worry for firms. Poland\u2019s largest age cohort, born in 1983, will reach the age of 41 this year (around 700,000 people); compare this demographic high-water mark to the number of 21-year-olds, born in 2003 \u2013 a mere 350,000. The number of labour-market entrants will continue to fall (290,000 Poles were born in 2023).<\/p>\n Poland\u2019s unemployment is lowest in the cities and highest in rural areas. More than half of the long-term unemployed live in villages. Big disparities exist between cities where unemployment is very low (Katowice and Pozna\u0144 1.1%, Warsaw 1.4%, Wroc\u0142aw 1.7%, Krak\u00f3w 2.1%, Gdansk 2.6%) and small provincial towns where it remains in double digits. Szyd\u0142owiec district, 120km south of Warsaw, also in Mazowsze province, holds the record for Poland at 22.9%. Nearby Radom, a city of 200,000 people, also has high unemployment at 9.4%. New investors might wish to consider university cities such as \u0141\u00f3d\u017a (4.5%), Rzesz\u00f3w (4.1%), Lublin (4.3%) or Kielce (4.4%). All data from June 2024.<\/p>\n The zloty UK-Polish trade<\/strong><\/p>\n On the surface, Brexit has not hampered trade between Poland and the UK, with 2023 seeing record values of goods and services traded between the two economies. However, UK exports to Poland now include significant sales of fossil fuels substituting those Poland used to buy from Russia. Polish export growth to the UK mainly comes from larger exporters successfully replacing goods from Western European SMEs which no longer trade with the UK because of frictions arising due to the UK\u2019s departure from the single European market and Customs Union. These have made it much harder for small business to trade profitably with a third country.<\/p>\n Links:<\/strong><\/p>\n GUS<\/a> (Statistics Poland) English-language pages The big picture for UK and foreign investors interested in Poland. Key macroeconomic indicators updated monthly.\u00a0 [GUS = G\u0142\u00f3wny Urz\u0105d Statistyczny \u2013 Statistics Poland] Inflation (CPI y-o-y, Jun 24, GUS) 2.6% Unemployment (claimant rate Jun 24, GUS) 4.9% Unemployment (econ. inactive, Eurostat, Apr 24) 2.7% GDP growth 2022 (y-o-y GUS, final) 5.3% GDP growth […]<\/p>\n","protected":false},"author":1,"featured_media":49462,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[56,57],"tags":[],"ppma_author":[308],"class_list":["post-49460","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-publications","author-bpcc_en","et-has-post-format-content","et_post_format-et-post-format-standard"],"acf":[],"authors":[{"term_id":308,"user_id":0,"is_guest":1,"slug":"bpcc_en","display_name":"British Polish Chamber of Commerce","avatar_url":{"url":"https:\/\/dev2.bpcc.org.pl\/wp-content\/uploads\/2023\/01\/Vertical_logotype_red_crown_transparent.png","url2x":"https:\/\/dev2.bpcc.org.pl\/wp-content\/uploads\/2023\/01\/Vertical_logotype_red_crown_transparent.png"},"first_name":"","last_name":"","user_url":"","description":"Since 1992, the British-Polish Chamber of Commerce has been working on behalf of its member companies in two areas - business development and the business environment. By offering extensive networking opportunities - at events and through its digital media - the BPCC helps to connect companies for mutual tangible benefits. \r\n\r\nThe BPCC is the first point of contact for all investors who see Poland as a convenient location to start an investment. 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\n Inflation<\/strong><\/td>\n (CPI y-o-y, Jun 24, GUS)<\/td>\n 2.6%<\/td>\n<\/tr>\n \n Unemployment<\/strong><\/td>\n (claimant rate Jun 24, GUS)<\/td>\n 4.9%<\/td>\n<\/tr>\n \n Unemployment<\/strong><\/td>\n (econ. inactive, Eurostat, Apr 24)<\/td>\n 2.7%<\/td>\n<\/tr>\n \n GDP growth 2022<\/strong><\/td>\n (y-o-y GUS, final)<\/td>\n 5.3%<\/td>\n<\/tr>\n \n GDP growth 2023 <\/strong><\/td>\n (y-o-y GUS, final)<\/td>\n 0.2%<\/td>\n<\/tr>\n \n GDP growth 2024 forecast<\/strong><\/td>\n (Credit Agricole, ING, July 24)<\/td>\n 2.3% to 2.8%<\/td>\n<\/tr>\n \n Retail sales<\/strong><\/td>\n (y-o-y to Jun 24, GUS)<\/td>\n 4.4%<\/td>\n<\/tr>\n \n Export of goods<\/strong><\/td>\n (2023, GUS \u2013 up 1.4% y-o-y)<\/td>\n \u20ac351.0 billion<\/td>\n<\/tr>\n \n Import of goods<\/strong><\/td>\n (2023, GUS \u2013 down 7.1% y-o-y)<\/td>\n \u20ac340.5 billion<\/td>\n<\/tr>\n \n Average wages (private sector, monthly, gross)<\/strong><\/td>\n (GUS, Jun 24 \u2013 up 11.0% y-o-y)<\/td>\n 8,145 PLN
\n(=\u20ac1,900 \/ \u00a31,600)<\/td>\n<\/tr>\n\n Statutory Minimum Wage (full-time, monthly, gross)<\/strong><\/td>\n (from 1.7.24; up 1.3% from 1.1.24; when it stood at 4,242 PLN)<\/td>\n 4,300 PLN
\n(=\u20ac1,000 \/ \u00a3850)<\/td>\n<\/tr>\n\n NBP reference rate<\/strong><\/td>\n (last changes Sep & Oct 2023,
\n100 basis-point cut in total)<\/td>\n5.75%<\/td>\n<\/tr>\n \n Industrial output<\/strong><\/td>\n (year-on-year, Jun 24, GUS)<\/td>\n 0.3%<\/td>\n<\/tr>\n \n Construction output<\/strong><\/td>\n (year-on-year, Jun 24, GUS)<\/td>\n -8.9%<\/td>\n<\/tr>\n \n PLN as of 30 Jul, NBP rate<\/strong><\/td>\n \u00a31 = 5.0882; \u20ac1= 4.2845; \u00a0$1 =3.9567<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
\nCommentary<\/strong><\/p>\n
\n<\/strong>Although Poland notionally signed up to join the eurozone as part of its EU Accession Treaty, there was no mention of when, or at what rate. To do so, Poland must alter its constitution, which needs a two-thirds parliamentary majority. So Poland continues to linger on the fringes of the EU\u2019s core \u2013 and \u2013 importantly for its manufactured exports \u2013 it can control the competitiveness of its currency. The Brexit referendum resulted in a dramatic fall in value of the pound. From June to October 2016, the pound fell from 5.60z\u0142 to 4.80z\u0142, a 14% drop. Since then, it has recovered; fluctuations result more from political turbulence than macroeconomic fundamentals. Over the past month, the zloty\/pound rate has fluctuated between at 5.03z\u0142 and 5.12z\u0142 to the pound.<\/p>\n
\nCentral Bank of Poland<\/a> English-language pages
\nEurostat<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"