Fastest economic growth in Europe in 1993. Steadfast implementation of economic reform since 1989 has encouraged growth of the private sector. Ability to attract foreign investment. Mass privatization scheme, including the 600 largest state-owned industries, launched in 1994.
Weaknesses
Persistent high inflation. Outdated production plant. Need to compete for foreign investment with other former COMECON states.
Profile
Poland entered deep economic crisis in the 1980s, fueled in part by high foreign debt levels. Following the change of government in January 1990, Finance Minister Leszek Balcerowicz implemented the Big Bang plan to bring about a swift transition to a market economy. Most prices were freed, trade was opened and the zloty was made convertible.
Although 40 years of communism have left considerable distortions in the economy, the framework necessary for a market economy is now being developed. The private sector now accounts for half of GNP and employs 60% of workers. Small businesses are flourishing in the previously neglected services sector. Stock and credit markets have opened and bankruptcy laws have been established. Share prices rose 900% in 1993.
Poland's economic growth and its 39 million domestic market make it attractive to foreign investors, which include companies such as Fiat, McDonalds and Proctor & Gamble.
