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Macroeconomy of Poland - Research Paper Example

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This paper critically evaluates the economic perspectives of Polish economy, which are deemed positive ones. It is shown in the paper, that the country emerged as one the few countries, which were not severely affected by the global financial crisis…
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Macroeconomy of Poland
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"Macroeconomy of Poland"

Download file to see previous pages his country has established stable trade relations with the rest of the world, where it cooperates with other countries such as China, Japan, and Canada who are its major trade partners. This country provides Canada with the second largest market in central and eastern Europe, where in 2005, Canada exported a total of $266.7 million worth of goods to Poland and in turn imported goods worth 532.6 million (Krugman, 34). These countries and other European countries have established many investments in Poland, in the sectors of transportation, technology, and security. However, there are various challenges that face this country, regarding its economy. Among those challenges is the aligning of the countries fiscal and monetary policies, towards adopting the euro. Another challenge facing the country is its labor force, where the country has a high rate of unemployment and low labor participation in the economic growth (Batara, 25). The country also suffers from a poor business environment, where the economy is dominated by major public sector investments, whose failure to privatize has hindered the favorable local and foreign investments into the country. Paramount of these challenges is the poor infrastructure for the agricultural sector, which this country possesses. The sector lacks ample investment, has surplus of labor and has a shortage of small firm’s investment (Schwab, 60). The banking system in Poland is large, ranked as the biggest in east and central Europe (Batara, 28). The sector is highly developed, an aspect that has been contributed by the privatization of some banks by the government in the period 1992-1997. During this period, the government also restructured other banks and added more capital and infrastructure to them while at the same time putting...
This paper aims to present a comprehensive modern overview of the economy of Poland, in order to determine macroeconomic tendencies in the country and to outline its economic perspectives.
Until the 1990s, the economy of this country was centralized. However, from then on, the government has been trying to decentralize this and adopt a free market system of economy, which has served to steer the economic growth of this country to the present state. This notwithstanding, there are many other sectors of the economy which have remained resistant to change, which is desirable for a free market economy
The industrial base of this country is centralized around petrochemicals, machinery, fertilizers, electronics, car manufacture, and shipbuilding.
This country established stable trade relations with the rest of the world, where it cooperates with other countries such as China, Japan, and Canada who are its major trade partners.
The banking system in Poland is large, ranked as the biggest in east and central Europe. The sector is highly developed, an aspect that has been contributed by the privatization of some banks. The government also restructured other banks and added more capital and infrastructure to them while at the same time putting in place policy reforms that greatly supported this sector. The future of the economy of Poland is promising. The county is constantly establishing vital political and economic relations with other countries to enhance its trade and investments, serving to spur the economic growth even further ...Download file to see next pagesRead More
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