Business Opportunities in Poland

Poland has emerged as an important and dynamic market since the country began its transition to democracy and a market-driven economy in 1989. With 38 million people, Poland is the largest market among the former Eastern bloc countries of Central Europe and shares borders with both “new” EU and “old” EU-15 countries. Poland became a member of the European Union (EU) in 2004. Poland’s adoption of EU legislation has led to wide-ranging reforms in economic regulation and reduced government intervention in the private sector. Reforms in areas such as financial markets, company and competition law, accounting, and intellectual property rights have improved the environment for private business and boosted economic growth. Poland is now the sixth-largest economy in the EU. Poland’s plans to eventually adopt the Euro currency will further accelerate the country’s integration with the EU. Poland has been an active member of NATO since 1999, participating in joint peacekeeping activities in the region and elsewhere, including Afghanistan, and is investing in a major modernization of its military. The United States and Poland enjoy a very close bilateral relationship, which has fostered strategic and commercial cooperation. U.S. companies are active in Poland and have invested heavily since the late 1980s, when the country began its transition. Abundant opportunities still remain for U.S. firms in Poland. In addition to its large and growing domestic market, the country also affords direct access to the EU and markets to the east. Poles continue to demonstrate a strong affinity for the United States and its products. While the rest of Europe struggled with the global financial crisis, Poland experienced GDP growth of over 20 percent from 2008-2013. As predicted, Poland’s GDP growth slowed in 2013 as a result of the European debt crisis and Poland’s own fiscal consolidation efforts. However, expansion is expected to exceed 3% in 2014. Poland’s growth was in part due to the sizable resources from the EU structural and cohesion funds. Poland is the main beneficiary of these funds, receiving €68.7 billion from 2007 to 2013. The second round of EU funding for the years 2014-2020 will reportedly be used to drive continued infrastructure projects, to develop Poland’s energy industry, and to stimulate innovation.