Poland Economy | From Communism to Full Development and Europe Power

Poland Economy | From Communism to Full Development and Europe Power

poland officially known as the republic of poland is a country located in central europe and bordered by lithuania and russia in the northeast belarus and ukraine to the east slovakia and the czech republic to the south and germany to the west with warsaw as the capital and the largest city by population poland was one of the last communist countries in europe and became a fully democratic country in 1990 when lek walesa won the end of communism in poland was part of the revolutionary wave in the 80s against the rules of communism the country is led by andres duda who is supported by the law and justice party nowadays poland is one of the most promising countries in europe and in just a few decades after the years of communism poland has become one of the biggest economies in europe with high living standards accessible education and a great health care system as always after this short introduction to poland in this video we are going to go deep down a little into the current economic situation of the country to see how and where this country could go in the next few years if you like this series of videos about economies of countries don’t forget to give it a like and subscribe for more future videos you’ll be able to find out all the resources used in this video in the description to find the most updated data note that as the weeks pass some data from this video will get a little outdated so in any case make your own research for the most recent estimations on the other hand the study will be done mainly for 2020 data trying to add the most recent 2021 data available which on so many occasions still won’t be released gdp one of the first indicators we always start with on this kind of video is the gross domestic product mostly known as gdp thanks to the data provided by the macroeconomic data bank website of the central statistical office of poland in 2020 the gdp at current prices was 2.3 trillion zloty which with the actual exchange makes an approximation of 600 billion dollars in the table you can see the evolution of the gdp in zloty and how the economy has kept a constant growth in the last years even growing in 2020. taking care of how the zloty exchange with the dollar has kept constant the growth is real and is not misleading with currency depreciation as we discussed last week with turkey’s economy you can also see the annual growth in the graph the last data available for the first quarter of 2021 talks about a gdp at current prices of 585 billions low t or following the actual exchange an estimated 151 billion dollars on the next graph you can see the evolution of the first quarter in the last five years and the annual growth in each of them this 2021 first quarter is the worst in terms of growth in recent years population according to the central statistical office of poland for 2020 the total population of poland was 38.2 million divided into 48.3 percent of the total population as males while the rest 51.7 percent as females one of the most surprising things about poland is their constant decrease in population in the last years with a clear pause in population growth as you can see in this graph in the last 10 years the annual growth has been always negative if we get a little deeper into the situation we can see how the oldest generation those who age more than 65 years old pass from representing almost 14 percent of the total population to more than 18.5 percent of it the annual births are also decreasing which means as we have said in several other economic videos that the population is getting older each year poland must push their natality rates or incentives for immigration to avoid a deeper problem in the future with their population structure gdp per capita considering the population is decreasing and the economy is increasing we could expect an important increase in the gdp per capita as you can see in the next graph this is the evolution of the gdp per capita in zloty in the last 10 years the last gdp per capita for 2020 goes to an estimate of more than 60 700 zloty with the current exchange the actual gdp per capita is an estimate of almost fifteen thousand six hundred and fifty dollars if we check the estimation made by the international monetary fund for 2021 poland appears in the 49th position with nine hundred and thirty dollars official currency the official currency of poland is the zloty although nowadays the currency is stable in the early nineties the government had to redenominate the currency switching in 1995 from the old zloty to the news loti avoiding the redenominations the zloty has been the official currency of poland since 1924 after the hyperinflation that europe was faced after the end of the world war one and also due to the use of a currency similar to the german mark at the moment of doing this video you will be able to get close to 3.88 loti for every dollar getting a historical graph of the exchange we can see how it has been stable in the last 10 years public debt if we move to the public debt in 2020 the general government consolidated gross debt was 1.3 trillions loti which in gdp terms is an estimated 57.5 percent with the actual exchange we were talking about a debt of 344 billion dollars in the next graph you can see the evolution of the public debt in terms of zloty as well as the percentage in terms of the gdp poland’s government was doing a great job reducing the debt to gdp in the last few years but due to the special situation of 2020 the actual debt is the highest in zloty terms as well in terms of percentage to the gdp in 2020 poland’s debt had increased by almost 28 percent public budget moving to the public budget the total public revenue of the poland government in 2020 was 420 billions loti or with the actual exchange an estimate of 108 billion dollars the evolution in the last 10 years of revenue looks like this inside the revenue almost 90 percent of the total came from taxes being half of them from the vat which is the tax to the consumer on the other hand the expenditure went up to 505 billions loti or an estimate of 130 billion dollars making pull in a deficit of 85 billions loti or 22 billion dollars the highest deficit in the last 10 years as we did with the revenue you can see the evolution of the expenditure as well as the evolution of the country’s public budget balance which has been mainly negative agriculture sector in 2020 the last full year available agriculture forestry and fishing generated 54.8 billions loti or an estimate of 14.1 billion dollars which means close to 2.7 percent of the entire gdp at current prices in the first quarter of 2021 the agriculture sector of poland increased by 3.9 percent compared with the first quarter of 2020 with 14.4 billions loti on the next graph you can see the evolution ins loti terms of the agriculture sector since 2011 industry sector the second most important sector of poland’s 2020 gdp at current prices is industry representing 32 percent of the entire gdp and generating 654.5 billions loti or an estimate of close to 168.6 billion dollars inside the sector the biggest sub-sectors were manufacturing and construction generating 386 and 151 billion zloty respectively manufacturing represents close to 19 percent of the entire gdp in the first quarter of 2021 the industry sector has grown 5.4 percent following the evolution you can see in the graph in this next graph you can see the evolution of the industry sector since 2011. service sector finally and as expected the biggest sector of the gdp at current prices is service with 65.3 percent of the gdp and generating 1.3 trillions loti or an estimate of 344 billion dollars as you can see in the graph in 2020 inside the sector the biggest sub-sector is trade and repair of motor vehicles with 17.3 percent of the gdp and 355 billions low t generated followed by transportation and storage with 6.8 percent of the gdp and 140 billions loti in the first quarter of 2021 the service sector has grown just one percent following the evolution you can see in the graph as we have done with the other two sectors here’s the graph since 2011 of the service sector tourism according to the oecd database in 2019 the total domestic tourists of poland were 50 million while on the other hand the international tourists were 7.4 million with germany and the united kingdom the top tourist nationalities in the next graph you can see the evolution since 2014 of both types of tourists inflation if we check the poland’s consumer price index we can see how the last data from may 2021 talk about a 104.7 index being 100 the same month of the last year meaning a 4.7 percent increase in prices in the last 12 months export and imports if we move to the trade balance we could see how in 2020 poland had a positive trade balance at current prices of 40.5 billion dollars improving the balance from 2019 and getting the biggest trade balance in the last 10 years if we move to each part of the trade balance starting with exports in 2020 at current prices poland generated a total of close to 333 billion dollars in a similar level as 2019 and 2018 as you can see in the graph due to the impossibility to find more detailed data on foreign trade for the partners and top products we will use the comtrade database the most exported products by poland for 2020 in order have been machinery electronics and vehicles if we talk about countries the major export partners of poland in 2020 were by order germany the czech republic and the united kingdom on the other hand if we talk about imports in 2020 at current prices poland made a total of 292 billion dollars decreasing from 2019 and 2018 making each year the positive balance of the country the most important products of poland in 2020 have been electronics machinery and vehicles if we talk about countries the major import partners of poland in 2020 were by order germany china and italy finally i will add you the same graphs in the domestic currency you can pause the video if you are interested take care that some trends could be different due to the exchange with the dollar poland bond the actual yield of the 10-year bond of poland goes to 1.66 percent at the moment of doing this video in the last 10 years the yield has been decreasing which is a great sign for the country poland taxes if we talk about taxes and specifically about the individual tax poland has the next short progressive table taxing 17 or 32 percent with some exceptions and special taxes for those individuals who have a business if you are a non-resident you will have a 20 percent flat tax rate while the country also has the so-called solidarity tax of 4 percent on the other hand the corporate tax of poland is a fixed rate of 19 percent although as you can see there are exceptions such as the small taxpayer option unemployment the last unemployment rate available is from may 2021 when poland had an unemployment rate of 6.1 percent decreasing constantly from the highest 6.5 percent they had in january 2021. as you can see in the graphic poland’s unemployment rate has remained similar in recent years conclusion one thing is clear poland is doing a great job since the end of communism and in a few decades has become a well-developed country if poland continues with this trend it soon will be one of the biggest economies in europe rivaling economies such as switzerland the netherlands or even the struggling economy of spain as we always say time will tell us if poland’s government is doing the right things but it looks like poland has a bright future if you like this video don’t forget to give it a like and subscribe for more future videos comment below what are your thoughts about poland if you know more about poland’s economy or you’re from poland and want to add more data let me know in the comments hope to see you in the next video and have a good day bye
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Poland Economy | From Communism to Full Development and Europe Power

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