Overview

A SUPPLEMENT TO EUROMONEY

Introduction

Three years ago, the Polish Government implemented an economic program called Strategy for Poland, a macroeconomic blueprint for the period between 1994 and 1996.

The principle aims for the government's policy were, and continue to be:

• to ensure the conditions for a high GDP growth rate;

• to reduce inflation;

• to reduce budgetary imbalance to a budget deficit not higher than 2.5% of GDP and to a level of public debt not higher than 60% of GDP for the coming years;

• to improve people's living standards, including an increase in real wages, and to reduce unemployment.

The principle macroeconomic ratios for 1996 suggest that Poland's macroeconomic policy has been effective. GDP increased by 7% in 1995 and an increase of 5.5% is forecast for this year. This places Poland among the fastest-developing countries in the world. This year industrial production growth has greatly influenced GDP, which increased by about 8.8% in the first 9 months. The share of industrial production in GDP is about 40%.

Investment demand

Improving investment demand in Poland, and changes to its structure, indicate that development in the economy is fast.