Strategy and Analyses Department Poland’s ECONOMIC PERFORMANCE September, 2013

Strengths of Poland Large domestic market Central location in Europe 2 Strengths of Poland Area: 323 thousand km2 - 9th in Europe, 69th in the world Population: 38.5 million - 8th in Europe, 34th in the world Currency: Polish Zloty (USD 1 ≈ PLN 2.96) (EUR 1 ≈ PLN 4.12) GDP total: EUR 381.0 bln (USD 487.7 bln) GDP per capita PPP: EUR 16 800 (USD 20 592) GDP per capita: EUR 9 900 (USD 12 538) GDP growth: 4.5%*, 1.9% Membership: OECD, WTO, NATO, EU Large domestic market Central location in Europe International legal and business standards Young and well- educated workforce * Data for 2011 2

Leader of GDP growth in EU Poland Sustainable and balanced economic growth 3 EU Presidency Leader of GDP growth in EU Poland joins the EU Schengen WTO Entry into the NATO OECD Data: Poland’s CSO Poland’s GDP in mn PLN 3 3

Poland’s GDP growth (% change. yoy) 4 Poland’s GDP growth (% change. yoy) Data: Poland’s CSO % According to CSO data. 2012 GDP growth amounted to 1.9%. The biggest growth contribution was made by net exports. According to CSO estimates. in the 1st half of 2013 growth amounted to 0.7%. * - MoE forecast

Nominal GDP of EU - CEE countries (PPS , EUR bn, 2012) 5 Nominal GDP of EU - CEE countries (PPS , EUR bn, 2012) Data: Eurostat

6 CEE & Balkan EU member states GDP growth rates 2009-2012 (compared with the same period of the previous year) Data: Eurostat

7 EU 10 GDP performance in 2004-2014   2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 EU 27 2,5 2,1 3,3 3,2 0,3 -4,3 1,6 -0,3 -0,1 1,4 Euro zone 2,2 1,7 2,9 0,4 -4,4 2,0 -0,6 -0,4 1,2 Bulgaria 6,7 6,4 6,5 6,2 -5,5 1,8 0,8 0,9 Czech R. 4,7 6,8 7,0 5,7 3,1 -4,5 1,9 -1,3 Estonia 6,3 8,9 10,1 7,5 -4,2 -14,1 8,3 3,0 4,0 Latvia 11,2 9,6 -3,3 -17,7 -0,9 5,5 5,6 3,8 4,1 Lithuania 7,4 7,8 9,8 -14,8 1,5 5,9 3,7 3,6 Hungary 4,8 3,9 0,1 -6,8 1,3 -1,7 0,2 Poland 5,3 5,1 4,5 1,1 Romania 8,5 4,2 7,9 7,3 -6,6 -1,1 0,7 Slovenia 4,4 5,8 3,4 -7,8 0,6 -2,3 -2,0 Slovakia 10,5 -4,9 1,0 2,8 Data: Eurostat, 2013-2014 - forecast

Poland’s industrial production 8 8 Poland’s industrial production Data not fully comparable. From 2006 data base on a new methodology. Data: Poland’s CSO January-July 2013 industrial production increased by 0.5% (yoy); prices of sold production of industry increased by 1.3%. 8 8

Poland’s construction production 9 9 Poland’s construction production Data not fully comparable. From 2006 data base on a new methodology. Data: Poland’s CSO January-July 2013 construction production decreased by 17.7% (yoy); prices in construction sector decreased by 1.8%. 9 9

Labour market – unemployment rate in Poland 10 Labour market – unemployment rate in Poland Data: Poland’s CSO January-July 2013 unemployment rate amounted to 13.1%; average employment (yoy) amounted to 5,488 thous. and the average wages and salaries in enterprise sector stood at PLN 3,781 (+1,9% yoy in real terms). 10

Consumer Price Index in Poland 11 11 Consumer Price Index in Poland June-July 2013 consumer prices rose by 0.9%; prices growth was driven by a higher dynamics of food and non-alcoholic beverages prices (by 3.5%). Housing charges rose by 1.7%, including energy carriers (by 0.2% yoy). Data: Poland’s CSO 11 11

Nominal trade value – Poland 2004-2012 (commodities; in EUR mln) Data: Poland’s CSO 12

13 Poland’s foreign trade geographical structure (according to CSO data for 2012) Exports Imports In 2012 the main receivers of Polish exports were developed countries (82.2%), in which UE countries (76%). The main Polish exports partners were Germany (25.1%), United Kingdom (6.8%) and Czech Republic (6.3%). Data: Poland’s CSO 13 13

Trade Poland-Turkey January-July 2013 14 After 7 months of 2013 total Polish exports increased by 6.2%, to EUR 86.9 bn, whereas imports decreased by 1.7%, to EUR 87.5 bn. Exports to Turkey increased by 4.6%, to above EUR 1.4 bn. Polish imports from Turkey rose by 6.2%, to about EUR 1 bn. In trade with Turkey Poland recorded a surplus of EUR 430 mn. In January-July 2013, Turkey’s share of the total Polish turnover was: in exports – 1.7% in imports – 1.2%. Data: Poland’s CSO 14 14

15 After 7 months of 2013 in Poland’s trade with Turkey the dominant role had: Electromechanical products and its parts: 64.4% in exports 40.7% in imports Chemical industry products: 14.2% in exports 11.1% in imports Light industry products: 25.9% in imports Metallurgical products: 9.5% in exports 10% in imports. Data: Poland’s CSO 15 15

Foreign Direct Investments in Poland 16 Poland - Foreign Direct Investments Foreign Direct Investments in Poland Data: NBP Main foreign investors in Poland are European Union countries. At the end of 2012 FDI inward stock accounted to EUR 176.9bn. According to NBP data for 2011, companies from the Netherlands, Germany, France and Luxembourg are the biggest foreign investors in Poland 16

(according to National Bank of Poland data for 2011) 17 FDI Poland-Turkey (according to National Bank of Poland data for 2011) According to NBP data, in 2011, Turkish companies invested in Poland EUR 62,9 million. The estimated stock of Turkish FDI in Poland at the end of 2011 amounted at EUR 26.5 million. According to PAIiIZ in 2012 there were 6 companies with Turkish capital (Nurol Holding, Mesa Mesken AS, Niff Rubber Industry, Polimer Kaucuk Sanayu ve Pazarlama AW, Koc Holding – Beko Polska). Companies from Poland invested in Turkey till the end of 2011 EUR 184.3 million. Among the biggest Polish investors in Turkey are companies operating in IT sector (Asseco), pharmaceutical industry (Polpharma – biggest Polish investor in Turkey), and also in chemical industry (Selena). According to PAIiIZ data 100 Polish companies want to invest in Turkey. 17 17

Ernst&Young Report – European Attractiveness Survey 2013 Poland was the continent’s strong performer in 2012, attracting 22.3% more projects than in 2011. Within the CEE region, Poland outpaced Russia to become the leading destination for FDI projects in 2012. With 13,111 jobs created by FDI, up 67.3%, Poland ranked 3rd in terms of job creation for the whole of the continent (after the UK and Russia). US investments rose sharply in services projects, while German companies increased their presence in the automotive and logistics sectors. Poland is also developing BPO centres in finance, accounting, contact and research. Poland was the top improver globally in the past year, according to the World Bank’s Doing Business 2013 report. It has won attention as the fastest growing EU member since 2008, and benefts from a skilled native workforce and an extensive and able migrant workforce. Poland was the leading CEE destination according to investors, claiming 37% of the votes. Number of FDI Projects in CEE Country 2011 2012 Annual change Share (2012) 1 Poland 121 148 22.3% 3.9% 2 Russia 128 0.0% 3.4% 3 Turkey 97 95 -2.1% 2.5% 4 Serbia 67 78 16.4% 2.1% 5 Czech Rep. 66 64 -3.0% 1.7% Number of jobs created by FDI in CEE Country 2011 2012 Annual change Share (2012) 1 Russia 8,362 13,356 59.7% 7.8% 2 Poland 7,838 13,111 67.3% 7.7% 3 Serbia 13,479 10.302 -23.6% 6.0% 4 Turkey 7,295 10,146 39.1% 5 Romania 5,985 7,114 18.9% 4.2%

Thank you for your attention Ministry of Economy pl. Trzech Krzyży 3/5 tel. +48 22 693 50 00 email: mg@mg.gov.pl Strategy and Analyses Department 00-507 Warsaw fax +48 22 693 40 46 web: www.mg.gov.pl more information on: www.mg.gov.pl >> Analizy>>English Version >> Poland's economic performance 19