Over the last few years, Poland has developed a strong domestic tourism market because there is a solid leisure base in holiday resorts, as well as the business areas developed in the city.
GDP is now forecast to grow by 4.8% in 2021 and 4.5% in 2022 in both the EU and the euro area. The forecast for Poland for 2022 is more promising: a 5.2% growth.
Economic situation and development
Polish gross-domestic- product (GDP) during the second decade of 2000s was consistently growing. For this reason Polish economy was considered as steady and promisingly developing. In the year before the pandemic started Poland recorded one of the highest GDP growth in the region and among 28 European Union countries. In 2019 Polish GDP rose by 4.7 percent year over year which was the fourth result in EU-28. In the meantime in EU-28 the GDP growth was 1.6 percent, in the euro area – 1.3 percent. This recent rapid development and positive changes since Polish transformation still encourage many foreign investors.
The beginning of 2020 pointed to relatively low but stable economic growth. COVID-19 pandemic and its repercussions caused a severe collapse of many economies worldwide. The Polish GDP growth became negative and amounted -2,7 percent year over year. This was a surprisingly good result, the fifth one in EU-27. The average for EU-27 was -6,1 percent. Therefore Poland was experiencing one of the shallowest recessions in Europe.
Poland can be one of the most attractive locations to invest in Europe. The inflow of foreign direct investment (FDI) has significantly increased over the recent years. This surge is a clear proof of Poland’s attractiveness for international capital. This is due to favorable economic conditions, large domestic market, well-educated workforce.
At the end of 2020, the CPI in Poland amounted to 3.4 percent, which is significant increase in comparison to 2.3 percent at the end of 2019. The unemployment rate rose by 1 percentage point to 6.2 percent.
After the expected weak Q1 2021, the economy is expected to recover thanks to mass vaccinations. Consumption is to become the engine of GDP growth.
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