POLAND 2012 ECONOMY

Transcription

POLAND 2012 ECONOMY

MINISTRY OF ECONOMY
POLAND 2012
REPORT
ECONOMY
WARSAW 2012
MINISTRY OF ECONOMY
Prepared by:
Ministry of Economy
Strategy and Analyses Department
Agnieszka Albrecht, Tomasz Chałupa, Kazimierz Cwalina, Michał Drobniak, Andrzej Grabarczyk,
Dominika Hasińska, Agnieszka Kalisiewicz, Diana Łukaszek-Rozpendowska, Małgorzata Mendyk,
Kazimierz Miszczyk, Marcin Mucha, Marta Ostrowska, Anna Paczkowska, Maria Szkutnicka-PieniąŜek,
ElŜbieta Szułczyńska, Jakub Świetlik, Tomasz Tyc, Monika Walczak, Krzysztof Wójtowicz, Marcin Zelman
In cooperation with:
Economic Regulation Improvement Department, Energy Department, Renewable Energy Department,
Nuclear Energy Department, European Funds Department, Electronic Economy Department, Mining
Department, Innovation and Industry Department, Support Instruments Department, Trade Policy
Department, Oil and Gas Department, European Affairs Department
Supervised by:
Aneta Piątkowska – Director of the Strategy and Analyses Department
Translation:
GTC AMG sp. z o.o.
ul. Rolna 155 a
02-729 Warszawa
ISSN 1643-2681
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POLAND 2012 – ECONOMY REPORT
Contents
SYNTHESIS______________________________________________________________________ 7
PART I
POLAND AND THE WORLD _______________________________________________________ 23
1.
MAJOR TRENDS IN THE WORLD ECONOMY___________________________________ 23
1.1. General description of the situation in the World economy in 2011 _________________23
1.2. Economic situation on the most important global markets ________________________24
1.2.1.
The United States ___________________________________________________ 24
1.2.2.
Japan _____________________________________________________________ 26
1.2.3.
Western Europe and the euro area ______________________________________ 27
1.2.4.
Developing Asian markets _____________________________________________ 28
1.2.5.
The Commonwealth of Independent States________________________________ 30
1.3. Real increase in the global trade in goods in 2011 _______________________________31
1.4. Prices and exchange rates in international trade in goods in 2011 __________________33
1.4.1.
World prices fluctuations ______________________________________________ 33
1.4.2.
Exchange rate fluctuations_____________________________________________ 34
1.4.3.
Changes in the trade in goods in the main regions __________________________ 34
1.5. Prospects of World trade development in 2012 __________________________________37
1.6. Public finances in a global approach __________________________________________38
2.
POLAND IN THE EUROPEAN UNION _________________________________________ 43
2.1. Poland and the European Union ______________________________________________43
2.1.1.
Gross Domestic Product ______________________________________________ 43
2.1.2.
Industry ___________________________________________________________ 44
2.1.3.
Construction industry _________________________________________________ 45
2.1.4.
Labour market ______________________________________________________ 46
2.1.5.
Inflation ___________________________________________________________ 46
2.2. EU economic governance ___________________________________________________46
2.3. Europe 2020 strategy and the National Reform Programme________________________49
2.4. Internal market ____________________________________________________________54
2.4.1.
Free movement of goods and services ___________________________________ 54
2.4.2.
Free movement of people _____________________________________________ 58
2.4.3.
Horizontal industrial policy _____________________________________________ 59
2.4.4.
Climate and Energy Package___________________________________________ 60
2.4.5.
Energy sector adjustment _____________________________________________ 61
2.4.6.
Internal market and relations with third countries____________________________ 62
2.5. Absorption of the EU funds __________________________________________________65
2.5.1.
Financial perspective for 2004–2006 _____________________________________ 65
2.5.2.
Financial perspective for 2007–2013 _____________________________________ 66
2.5.3.
New financial perspective for 2014-2020 __________________________________ 71
3.
COMPETITIVENESS OF THE POLISH ECONOMY _______________________________ 73
3.1. International competitiveness rankings ________________________________________73
3.2. Poland and the European Union ______________________________________________76
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PART II POLAND’S ECONOMIC GROWTH IN 2011 _____________________________________ 79
4.
GROSS DOMESTIC PRODUCT ______________________________________________ 79
4.1. GDP dynamics and growth drivers ____________________________________________79
4.2. Internal demand ___________________________________________________________83
4.3. Impact of investments on the GDP dynamics ___________________________________85
4.4. Impact of exports on the GDP dynamics _______________________________________86
4.5. Role of sectors in GDP formation _____________________________________________89
4.6. Gross domestic product per capita in Poland compared to other countries __________91
5.
LABOUR MARKET ________________________________________________________ 93
5.1. Employed persons _________________________________________________________93
5.2. Unemployment and unemployment rate________________________________________95
5.3. Structural mismatch on the labour market ______________________________________96
5.4. Foreign migration for economic reasons _______________________________________97
6.
FOREIGN TRADE ________________________________________________________ 101
6.1. Situation in Polish foreign trade in 2011_______________________________________101
6.2. Geographical structure of foreign trade turnover _______________________________104
6.3. Changes in commodity structure of foreign trade_______________________________108
6.4. Foreign trade in the first half of 2012 _________________________________________112
6.5. Exchange rate and its influence on trade in commodities ________________________115
7.
INFLATION AND MONETARY POLICY _______________________________________ 117
7.1. Prices ___________________________________________________________________117
7.1.1.
Consumer prices ___________________________________________________ 118
7.1.2.
Prices of industrial production and construction/assembly production ___________ 120
7.2. Monetary policy___________________________________________________________121
7.2.1.
Basic factors influencing the implementation of monetary policy _______________ 121
7.2.2.
Monetary policy implementation in 2011 _________________________________ 122
7.2.3.
Instruments of monetary policy implementation ____________________________ 122
8.
THE PUBLIC FINANCE ____________________________________________________ 125
8.1. State budget _____________________________________________________________125
8.2. Public finance ____________________________________________________________128
8.3. Meeting the Treaty of Maastricht criteria ______________________________________130
9.
INDUSTRY ______________________________________________________________ 133
9.1. Dynamics and structure of industrial output ___________________________________133
9.1.1.
Industrial output dynamics ____________________________________________ 133
9.1.2.
Structure of output sold in various sections and divisions of industry ___________ 137
9.1.3.
Manufacture of selected products ______________________________________ 139
9.2. Essential problems of industry. Situation in selected sectors _____________________140
9.2.1.
Hard coal mining ___________________________________________________ 140
9.2.2.
Automotive sector __________________________________________________ 142
9.2.3.
Chemical industry sector (including pharmaceuticals) _______________________ 145
9.2.4.
Iron and steel metallurgy sector________________________________________ 147
9.2.5.
Electronic sector ___________________________________________________ 148
9.2.6.
Light industry sectors ________________________________________________ 150
9.2.7.
Wood-based sectors ________________________________________________ 151
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10.
POLAND'S ENERGY SECURITY ____________________________________________ 153
10.1. Situation on the fuel and energy market_______________________________________153
10.1.1. Security of the Polish power system ____________________________________ 153
10.1.2. Situation of the energy sector in 2011 ___________________________________ 153
10.1.3. Renewable energy sources (RES)______________________________________ 154
10.1.4. Efficiency of the use of energy in economy _______________________________ 158
10.1.5. European Union greenhouse gas emissions trading scheme _________________ 161
10.1.6. Nuclear Power _____________________________________________________ 164
10.1.7. Security of the oil sector______________________________________________ 165
10.1.8. Security of the gas sector ____________________________________________ 167
10.2. Identifying threats_________________________________________________________170
11.
CONSTRUCTION _________________________________________________________ 173
11.1. Gross value added and sold production of construction industry__________________173
11.1.1. Macroeconomic conditions of sectors’ dynamics and production volume ________ 173
11.1.2. Dynamics and structure of construction and assembly output _________________ 174
11.2. Residential construction ___________________________________________________175
11.2.1. The general situation of residential construction sector ______________________ 175
11.2.2. Residential construction in 2011 _______________________________________ 176
11.3. Assessment of the construction industry performance __________________________177
12.
SERVICES SECTOR ______________________________________________________ 179
12.1. Value added (market and non-market services)_________________________________179
12.2. General characteristics of the services sector__________________________________179
12.3. Trade and repair __________________________________________________________181
12.4. E-Commerce _____________________________________________________________183
12.5. Transportation and storage _________________________________________________184
12.6. General problems of the services sector ______________________________________185
13.
ENTERPRISES___________________________________________________________ 189
13.1. Ownership structure and transformation of state-owned enterprises _______________189
13.1.1. Ownership transformation in state-owned enterprises _______________________ 190
13.1.1.1. Ownership transformation process _____________________________________ 191
13.1.1.2. Revenues from privatisation and budgetary revenues from dividends___________ 192
13.1.1.3. Ownership transformations in 2012 _____________________________________ 193
13.1.2. Small business development __________________________________________ 194
13.2. Financial standing of enterprises ____________________________________________197
13.2.1. Revenues, costs and results on individual types of activities __________________ 197
13.2.2. Investment expenditures and possibilities of their self-financing _______________ 199
13.2.3. Debt, receivables, financial liquidity _____________________________________ 200
13.2.4. Financial situation in economy sections__________________________________ 200
13.2.5. Financial situation in ownership sectors__________________________________ 203
13.2.6. Financial situation in enterprises according to their size _____________________ 204
13.3. Capital expenditures and Polish foreign investment_____________________________209
13.3.1. Capital expenditures ________________________________________________ 209
13.3.2. Polish foreign investments ____________________________________________ 213
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13.4. FDI inflow to Poland _______________________________________________________215
13.4.1. Role and importance of companies with foreign capital ______________________ 215
13.4.2. FDI inflow to Poland_________________________________________________ 217
13.4.4. FDI by country of origin of capital_______________________________________ 219
13.4.5. The sectoral breakdown of FDI inflows __________________________________ 221
13.4.6. Poland’s investment attractiveness _____________________________________ 222
13.5. Innovativeness of Polish enterprises and their environment ______________________223
13.5.1. Innovativeness of Polish enterprises ____________________________________ 223
13.5.2. Institutional environment of Polish enterprises_____________________________ 227
13.6. Development of enterprises_________________________________________________229
13.6.1. Economic regulations________________________________________________ 229
13.6.2. Barriers for the development of entrepreneurship __________________________ 233
13.6.3. Entrepreneurship support instruments ___________________________________ 237
13.6.3.1. Instruments supporting the innovation of enterprises________________________ 237
13.6.3.2. Exports supporting instruments ________________________________________ 242
13.6.3.3. Financial support for investments ______________________________________ 245
13.6.3.4. Special Economic Zones _____________________________________________ 247
13.6.3.5. Instruments for the development of business environment networks____________ 251
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SYNTHESIS
In 2008 and 2009, Poland’s economy suffered from the global economic crisis impact. It resulted in
muted economic activity, which in turn triggered a slowdown in GDP growth. In 2010, the adverse trends
observed in the economy in the last two years were struggled. Economic activity improved, and so did
the pace of GDP output. In 2011, economic growth accelerated even further. GDP strengthened by
4.3%, against 3.9% in the previous year.
In 2011, the structure of components supporting the GDP growth rate changed as compared to the
previous year. In 2010, the sole decisive factor was domestic demand, with a negative input from net
exports. The increase in domestic demand was driven by consumption (mainly individual) and
restocking. In 2001, the contribution of particular factors to GDP growth was much more balanced.
Thus, the positive contribution was made by both, domestic demand (including consumption,
investments and an increase in inventories) and net exports.
Regarding foreign trade, turnover upswing was noticed. In 2011, the value of exports increased by
13.6%, to reach the level of EUR 136.7 billion. Imports reached EUR 152.6 billion, and was 13.7%
higher than in 2010. The deficit in commodities trade was EUR 15.9 billion and close to EUR 2.1 billion
higher than in the previous year. It should be noted that the record-high trade deficit observed in 2008
(EUR 26.2 billion) was reduced in the last three years by EUR 10.3 billion, i.e. by over 40%.
Industrial output increased by 7.5%, while construction and assembly production increased by 12.4%.
The high growth in construction and assembly production was the result of higher propensity to invest.
Expenditures increased by 9.4%. The slight improvement in the economic situation in 2011 did not
result in a considerable improvement of the labour market situation. The number of employed increased
by 1.2%, but the registered employment rate by the end of the year (12.5%) was slightly higher than in
the previous year.
The relatively favourable situation in the real economy was accompanied by a substantial problems in
the area of public finance. The relation of the general government sector’s deficit to GDP decreased in
2011, but still remained too high. In line with the European Commission’s recommendations, by 2012
Poland should have eliminated the excessive deficit in a convincing and permanent way. In 2011, the
public debt to GDP ratio increased. It is over 50% now, so higher than the 1st prudential threshold.
Compared to the EU-27 countries, Poland’s economic situation is favourable. Consequently, the gap in
terms of economic development between these countries and Poland is gradually reduced. GDP per
capita in Poland increased from 51.8% of the EU average in 2005 to 56.3% in 2008 and 65.1% in 2011.
EXTERNALITIES. After a swift recovery of production and international trade, and revival of
investments and employment in 2010, 2011 saw a slowdown in the global GDP growth from 5.3% to
3.9%. Another deceleration in the economy proved that the economic disturbances that gave rise to the
2008–2009 crisis were not entirely removed and keep affecting a number of economies. The major
effects of the global financial crisis for European markets consist in tensions in the area of public finance
and a serious debt crisis in the euro area, thus threatening the single currency. The disturbances result
not only in a slowdown in the EU economy, but also in many other regions of the World, particularly in
countries for which European markets are the major trade partners.
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MINISTRY OF ECONOMY
In the past two years, condition of the global economy was also shaped by non-economic events, which
translated into growth slowdown. One of the factors, which are largely unforeseeable in the long run, are
natural disasters. In 2010 and 2011, the volcano eruptions in Iceland, tsunami and earthquakes in
Japan (resulting in a nuclear threat) and the enormous flood in Thailand by the end of 2011 had
a considerable impact on global production, mainly through strong influence on global supply and
cooperation relations in production processes. In addition, the global economy was significantly
influenced by the political situation in North Africa and Middle East, particularly in terms of oil supply and
prices, starting from the end of 2010.
The above-mentioned disturbances exerted an impact on international trade. Strong global production
links result in its high vulnerability to changes in the economic cycle, which converts into fluctuations of
global trade value that are higher than changes in GDP. While in 2011 the GDP growth rate lowered by
1.4 pp, the increase in the volume of global trade in goods and services was reduced to 5.9%, i.e.
nearly 7 pp lower than in the previous year.
The performance of individual economies for 2011 also confirms the trend observed for many years now
that developing and emerging markets develop at a faster pace than the developed ones. In developed
countries, GDP increased by 1.6%, which is a half of the 2010 growth rate. In developing countries in
turn the deceleration of the 2011 growth was much smaller: from 7.5% to 6.2%.
During the 2008–2009 recession, the post-crisis recovery and another slowdown in the second half of
2011, large developing economies such as China and India remained leaders in terms of economic
growth. Although their growth also decelerated in 2011, mainly due to turbulence in their external
environment, the role of these markets, their economic and political strength increased considerably in
the past several years.
COMPETITIVENESS OF THE POLISH ECONOMY. The competitiveness of economy reflects the
country’s situation and significance on the international scene. It is a very complex notion, described by
a number of partial indicators that pertain to macroeconomic and microeconomic aspects of pursuing
economic activity. In the light of international comparisons and rankings, the Polish economy is not yet
classified as a highly competitive economy.
In recent years, the weaknesses of the Polish economy have included formalities related to obtaining
building permits (time-consuming, highly formalised and costly) and the long time of enforcing contracts.
Also, Poland’s low rank is due to poor infrastructure, insufficient innovation level and low efficiency of
the labour market.
On the other hand, Poland’s economy is positively influenced by the good quality of higher education
and training offered and the attractiveness of investments resulting e.g. from a large and deep domestic
market, well-qualified and professional staff, stable fiscal system and a stabilised macroeconomic
situation.
ECONOMIC GROWTH. The period of stable and sustainable economic growth covering almost all
sectors began in 2004 and was continued until mid-2008. The growth incentive was Poland’s accession
to the European Union. Economic activity peaked in 2007, when the GDP growth was robust and
reached 6.8%.
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The stage of fast economic growth was halted in the 2nd half of 2008 by the onset of the global financial
crisis. In 2008, the GDP growth rate declined to 5.1%, while in 2009 to 1.6%. When the crisis was
raging, the Polish economy remained one of few European economies on the growth path. In 2010,
economic activity revived. The growth rate increased to 3.9%. The positive trend continued also in 2011,
when GDP grew by 4.3%.
Owing to the stable and permanent growth of Polish economy, GDP (in nominal terms) in 2011 was
more than 10% higher than in 2008. Sweden, which ranks second, achieved a growth of close to 5%,
while GDP of the entire EU declined by nearly 1%.
2011 saw the weakening of economic activity in European economies. After a relatively good first half of
the year, in the last quarter the majority of countries experienced a decline in GDP, including Germany –
Poland’s major trade partner. It also affected Polish economy, nevertheless with a slight delay. In the 1st
quarter of 2012 initial symptoms of another slowdown emerged (the growth rate decreased to 3.5%),
resulting from the ongoing fiscal consolidation and deteriorating external situation.
Poland’s economic growth is positively supported by three factors: consumption, investments and net
exports, whose impact varies across years. Furthermore this scheme is still running, which should be
deemed as a positive premise to the development in the nearest future.
In 2011, as in the previous years, the major growth factor was the productivity increase of production
means, which is also the key determinant in the medium run. Capital, so the increasing fixed asset
resource utilized by the economy, also had a stable input in growth. Demography, understood as
increasing share of population in the working age, remains a favourable factor, as well as increasing
labour force participation of this group.
INVESTMENTS. Investments reflect the condition of the economy and its development prospects.
Increase in corporate capital expenditure accompanied by foreign direct investments indicate a good
shape of the economy and positive growth outlook. The level of investments determines a relevant
performance of economy and is indispensable for the improvement of its competitiveness. Increased
investment in machine parks and production equipment fundamentally contributes to the modernisation
of economy, pushing up effectiveness of production processes and improving the quality of products.
However, in the second half of 2008 Poland started to experience the effects of the global economic
crisis. Investment activity was significantly subdued. In 2008, the rate of growth in investment
expenditures (10.7%) decreased two times compared to the previous year (in constant prices). In 2009,
there was an absolute decline in investments (of 0.8%), while in 2010 the figure was slightly positive – a
0.2% increase. In 2011, the situation improved and investments grew by 9.4%.
Spending on buildings and constructions (in current prices) dominated in the structure of expenditures
(61.6%) in 2011. Expenditure on machinery and equipment had a share of 27.5% and expenditure on
transport means reached 9.8%.
The global economic crisis hit corporate investment activity to a particularly significant extent. In 2008,
the investment growth rate decreased almost three times (to 8.8%). In 2009, there was a decrease in
corporate investments of nearly 12%, and in 2010 of over 3%. The negative trend was overcome in
2011, when investments grew by almost 11%.
Between 2008 and 2010, the level of corporate debt from investment loans remained stable. In 2011,
there was a strong revival in corporate lending. The value of investment loans increased by PLN 18.7
billion, i.e. by 28.7%.
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MINISTRY OF ECONOMY
2011 witnessed the economic revival which translated into an increase in demand for corporate loans.
In subsequent periods, the deteriorating investment climate, worse economic situation of Poland’s major
trade partners and the expected deceleration of Polish economy’s growth rate may affect the
development of bank lending. It may lead to renewed decline in demand for corporate loans.
In 2010, Polish enterprises invested over EUR 4.1 billion abroad, which is the all-time high for Polish
FDIs. According to preliminary estimates of the National Bank of Poland, the level of Polish FDIs in 2011
was close to the level from the previous year. The aggregate value of Polish FDIs is estimated at close
to EUR 30 billion.
For several years now, there has been a clear upward trend in the value of Polish investments abroad.
Preliminary balance of payments data for 2012 indicate that the trend continues despite the global
crisis. In the long run, it is expected that this upward trend of Polish FDIs will not reverse either. It will be
the result of the growing expansion of Polish companies that will start to perceive its benefits and gain
competitive advantage which will allow them to undertake more investment projects. Increasing
competitiveness and managerial staff resources may prove to be valuable assets of Polish companies
in their foreign expansion.
Despite the increase in the value of Polish foreign investments, it is not possible that Poland would
switch from being a capital importer to a significant source of capital anytime soon. On the one hand, it
will be the result of continued policy aimed at attracting foreign investors to Poland. On the other hand,
difficulties accessing the sources of financing may become the barrier faced by Polish enterprises
investing outside the country.
In terms of FDI inflow to Poland, 2010 continued to reflect the crisis trends present in this regard
globally. After the record-breaking 2007 when Poland attracted more than EUR 17.2 billion, in 2008 and
2009 FDI values were similar and on average amounted to approx. EUR 9.7 billion, according to data of
the National Bank of Poland. In 2010, FDI inflow to Poland was much lower (ca. EUR 6.7 billion). The
cumulated FDI value exceeded EUR 150 billion by the end of 2010. According to preliminary estimates
of the National Bank of Poland, in 2011 Poland attracted EUR 10.3 billion in the form of FDI.
INDUSTRY. In 2009, the decline in industrial output in the first three quarters of the year resulted from
the global economic crisis affecting the Polish economy. From Q4 onwards, economic activity started to
recover. The favourable situation in industry was observed in 2010 and 2011, when output increased by
9.0% and 7.5%, respectively. In 2012, Polish industry suffered the consequences of subsequent wave
of economic crisis in Europe. Output growth rate weakened considerably to less than 5% in Q1 and ca.
3% in Q2.
The manufacturing section, accounting for over 80% of total output, determines the industrial output
growth rate. In 2011, output increased by 8.2% in this section. Growth was also observed in the other
industry sections: mining and quarrying – of 3.7%; electricity, gas, steam and air conditioning supply –
of 1.7%, and water supply, sewage, waste management and remediation activities – of 5.6%.
The trends observed in Poland as regards industrial output dynamics across the sections in the long run
reflect the trends observed in the developed countries. Output growth was the fastest in the
manufacturing sector which determines the dynamics of the entire industry. The output of mining and
quarrying is gradually reduced. In 2011, compared to 2005, total industrial output increased by 43.1%,
with the increase of 52.0% in the output of manufacturing sector and the decline of 8.4% in the mining
and quarrying output.
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In 2011, 19 out of 22 examined sections of the manufacturing industry recorded the output growth. The
highest increase was posted by the manufacturing of other transport equipment (of 39.1%), metal
products and furniture production (18.2% each). Declines were observed in the manufacturing of
pharmaceutical products (of 12.2%), manufacturing of computers, electronic and optical goods (of
7.0%), and manufacturing of machinery and equipment (of 2.9%).
In 2011, labour productivity measured by output sold per one employed person grew by 6.5% (by 10.2%
in 2010). The decrease in productivity growth rate resulted on the one hand from decreased production
dynamics, and on the other hand from increased employment compared to its decrease in 2010.
Productivity grew in all sections, most notably in industrial manufacturing (by 6.9%), where a relatively
high growth rate was accompanied by a relatively low increase in employment.
In 2011, just like in 2010, the labour productivity growth rate was higher than the growth rate of wages in
real terms, which resulted in lower unit labour costs. In 2011, these costs decreased at a slower pace
than in the previous year, by 4.2% and 6.9%, respectively. The more favourable indicator for 2010 is the
result of a much higher growth rate of labour productivity. The only section to see an increase in unit
labour costs in 2011 (of 4.9%) was mining and quarrying, where rwages in real terms grew by over 9%.
The greatest reduction in labour costs (of 5.0%) was posted by the manufacturing industry.
CONSTRUCTION. Investment activity of economic entities and the economic situation of the Polish
population are the decisive factors that create demand for construction services, and consequently the
development of the construction as a section of economy. The size and growth rate of construction
sector’s output are closely correlated with the size and growth rate of expenditures. In 2011, the growth
rate of sale of construction and assembly production increased to over 12%, against a 4.6% increase in
2010 and 5.1% in 2009.
2011 was the third year in a row to see a decline in the number of dwellings completed. Slightly over
131,000 flats were commissioned, and the figure is ca. 4,600 flats (or 3.5%) less than in 2010. The
decline in the number of new flats affected the majority of construction sectors: flats for sale or rent, cooperative housing, social tenement housing and council housing. The only increase was posted by
individual and company housing.
FOREIGN TRADE. In 2011, Polish foreign trade faced severe economic turbulence and the rising threat
of the second wave of crisis in the global economy. Particularly negative symptoms affected the markets
that are key to our trade: those of the euro area and other EU countries. After a period of post-crisis
recovery, whose rate varied across regions and countries, in the second half of 2011 structural
weaknesses of public finances and the banking system of many developed countries emerged and
triggered a sovereign debt crisis of certain euro area countries (Greece, Ireland, Portugal, Spain),
potentially threatening the stability of the euro area and the EU as a whole.
Accumulation of threats in the financial sector of the euro area and their more pronounced impact for
condition of the biggest European economies (France, Italy, and even Germany) observed in 2011
resulted in growth deceleration in the second half of 2011.
The economic situation on the major markets systematically deteriorated, which affected the dynamics
of Polish exports to these markets and the exports dynamics in general in subsequent periods of 2011.
The exports growth rate (in EUR) declined in consecutive periods from 21.5% in 1Q11 to 8.3% in 4Q11.
This was followed by a slowdown in the growth rate of imports (from 22.8% in 1Q11 to 4.8% in 4Q11).
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Despite a clear slowdown in Polish trade in commodities in the second half of the year, total 2011
exports increased by 13.6% to EUR 136.7 billion. Imports reached EUR 152.6 billion, it was 13.7%
higher than in 2010. In 2011, the commodity trade deficit equalled EUR 15.9 billion and was EUR 2.1
billion higher than in 2010. It should be noted that the record-high trade deficit observed in 2008 (EUR
26.2 billion) was reduced in the last three years by EUR 10.3 billion, i.e. by over 40%.
Though, the serious disturbances hurt the markets of Poland’s major trade partners, i.e. the euro area,
the relatively high increase in commodity trade in 2011 was mainly due to the high dynamics of trade
with developing and less developed countries. As in 2010, it was much higher than the average.
Markets of economically developed countries prevail as the Polish exports destinations. Their share in
the Polish exports was 84.3%, of which European Union countries accounted for 78.0%. The major
destination of Polish imports is the European Union whose share is 59.7%. Russia and China also have
a significant share, with a total of 20.7%. The highest deficit was seen in trade with Russia and China:
EUR 12.2 billion and EUR 11.9 billion, respectively. In 2011, trade with European Union countries was
on the positive side with the balance of EUR 15.6 billion.
The dominating commodity group in Polish foreign trade are electric machinery products, which
accounted for 40.5% of exports and 35.0% of imports in 2011. In terms of value, these are followed by
chemical products whose share in exports is 13.8% and in imports – 17.5%.
LABOUR MARKET. The marginal improvement in 2011 economic situation was not fully reflected by
better indicators of the Polish labour market. From the onset of the global financial crisis, the growth rate
of the number of the employed decelerated visibly. Following average annual increases of ca. 4%
between 2005 and 2008, since 2009 we have been witnessing increases of approximately 1%. In 2011,
the number of employed aged 20–64 increased by 1.2% compared to the previous year.
One of the most important economic factors shaping the situation on the labour market is the relatively
uncertain economic situation. Despite an improvement in the economic situation since its collapse in
2009, enterprises seem to continue with their austerity strategies and do not increase employment.
According to the registered unemployment statistics, 1,982 thous. people remained out of work at the
end of 2011. The registered unemployment rate was 12.5%, i.e. 0.2 pp lower than in 2010. In Poland,
unemployment tends to be long-term. In the surveyed population, 57% were unemployed for over a
year, 17% for between two and five years, and 28% did not work for over five years.
In 2011, the employment rate, indicating the share of working population aged 20–64 in the total
population of the same age, amounted to 64.8% and increased by 0.2 pp compared to the previous year
(68.6% in the EU-27). The employment rate in Poland is still among the lowest in the EU. The
employment level among young people is a significant problem. With the deterioration of the economic
situation in the aftermath of the global financial crisis, 2009 saw a reversal of the trend which envisaged
an improvement in employment rates of the youngest employees.
Modernisation and restructuring processes in the Polish economy are conducive to changes in the
labour demand structure both on local and national labour markets. Changes in the labour demand
structure require an appropriate adaptation of labour supply through the development of employee
qualifications and an increase in their mobility related to their willingness to work outside their current
place of residence. In Poland, it is not common to improve one’s vocational qualifications. There is a
clear correlation between the intensity of the educational process and age, educational attainment and
the place of residence. The number of people who raise their qualifications decreases with their age.
People who do raise their qualifications are usually holders of university degrees or graduates of post-
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upper secondary schools. Raising qualifications by an individual clearly impacts his/her situation on the
labour market. There was a systematic increase in the share of employed people among those who
raised their qualifications. Despite the clear results indicating an important connection between raising
qualifications and having a job, public awareness of the need for raising one’s vocational qualifications
is low. The structural mismatch is also caused by relatively low mobility of the workforce in Poland. A
small scale of internal migrations from low-demand areas to high labour demand areas contributes to
the spatial concentration of unemployment. Despite a small scale of internal migrations, public
awareness of the need for territorial mobility on the labour market is increasing. The increase in the
declared mobility of the unemployed aimed at finding a job is a positive phenomenon.
Following Poland’s accession to the European Union in 2004 and the gradual opening of labour markets
by Member States, many Polish citizens decided to leave Poland to work abroad. This resulted in a
significant increase in migration in the initial years after the accession. On 1 May 2011, two last EU
countries – Germany and Austria – liberalised the access to their labour markets, which until then had
restrictions in this area. The economic migration rate peaked in 2007, when 2.3 million Poles lived
abroad. With the financial crisis leading to a significant deterioration in the economic situation in
Western Europe, where the demand for workforce decreased and the unemployment rate increased,
migration became a less attractive alternative in the eyes of Polish workers. At the end of 2010, nearly 2
million Poles lived abroad, of which 1.6 million in EU countries. Apart from economic migration, the
phenomenon of return migration can also be observed. During the economic crisis in Western Europe,
the major reasons for returns were economic, such as losing a job, income lower than income in Poland
or inability to find work abroad.
PRICES. In terms of intensity and direction of price changes in Polish economy, the year 2010 was
characterized by a slowdown in the upward trend. In 2011, the price growth rate accelerated, due to
which the mid-year consumer goods and prices indicator was 4.3%, against 2.6% in 2010. As in the
previous year, the price growth in 2011 was determined mainly be relatively high volatility of prices of
food and energy carriers on international markets. The internal inflation factor, whose impact was higher
in the first half of the year, was mainly the increased consumption demand of households – an effect of
increasing employment, and the VAT rate increase introduced on 1 January 2011.
Average annual prices of industrial output grew by 7.6% in 2011, i.e. faster than in 2010 (2.1%). Prices
grew in all sections. The most dynamic increase was achieved by industrial output in the mining and
quarrying section (16.8% against 17.8% in 2010). The prices of construction and assembly production
increased by 1.0% in 2011 (a 0.1% decrease in 2010).
MONETARY POLICY. Among external factors with the most extensive potential impact on the volatility
of prices in the Polish economy, the Monetary Policy Guidelines for 2011 list weaker inflation pressure in
the most developed and developing economies of the World. In terms of endogenous factors, in the
context of inflation processes, the Guidelines mention economic activity in Poland, situation in the
labour market, fiscal policy and the development of bank lending. Persisting high liquidity in the global
financial markets is a risk factor conducive to higher inflation pressure. The main objective of the
monetary policy for 2011 is to keep inflation close to the mid-term inflation target (2.5%). Aiming to
achieve the objective with persistent inflation pressure, in the first half of 2011 the Monetary Policy
Council raised the basic interest rates of the National Bank of Poland four times, increasing each of
them by a total of 1 pp. In the second half of the year, the MPC did not change the interest rates,
considering the changes already introduced sufficient and thus conducive to the return of the Polish
economy onto the growth path. At the end of 2011, the reference rate was 4.5%.
13
MINISTRY OF ECONOMY
PUBLIC FINANCE. Public finance discipline is the key element of macroeconomic stability and thus of
the state’s credibility, which is of particular importance in the present period of turbulence on financial
markets and the accompanying uncertainty combined with the risk of sudden capital flows.
The performance of the public finance sector depends on economic fluctuations to a large extent. As a
rule, during a period of fast economic growth the income from taxes grows dynamically and some
categories of public expenditure decrease due to the improved economic situation of the population.
Similarly, during an economic slowdown tax revenues fall while some categories of public expenditure
rise. This regularity could be observed in Poland recently as an unfavourable macroeconomic situation
translated into the deterioration in public finance.
The current structure of budget expenditure, which has been marked by the dominance of fixed
expenditures for many years, limits the possibilities of the government to determine the level of budget
deficit. As in the previous years, most of budget expenditure was fixed expenditure, i.e. expenditure
required under statutory provisions or legally binding commitments made earlier. Its share in total
expenditure in 2011 amounted to 74.6% and was 0.4 pp higher than in 2010.
The improvement in public finance is the major challenge for the current economic policy of Poland. The
key objective is to cut the public finance sector spending and reduce its deficit. Long-lasting budget
deficit increases public debt and has a negative effect on the country's economic situation. In 2011, the
general government deficit amounted to 5.1% of GDP. The sector’s debt increased from 55.0% to
56.4%. According to 2012 forecasts adopted by the Ministry of Finance, the general government deficit
and public debt will amount to 2.9% and 53.7% of GDP, respectively.
OWNERSHIP STRUCTURE OF THE ECONOMY. A significant factor behind faster and more stable
economic growth is the development of the private sector. It is achieved by way of consistent
implementation of privatisation processes which efficiently contribute to investment growth, improved
financial condition of entities, optimisation of manufacturing processes and gaining durable ability to
compete on the global market, as well as influence state budget stability.
The economic situation of Polish and foreign partners is of significant influence on the efficiency of
privatisation processes as it directly influences the level of potential investors’ interest in the
privatisation offer. The efficiency of privatisation processes is also the result of the situation on capital
markets, which reflects the condition of the economy and sentiments of investors, it is also the place
with the fastest and the most visible response to changes in the economic situation.
Privatisation can offer new possibilities for Polish enterprises and favourable conditions for their
development. Effective privatisation processes are one of the chances for maintaining economic growth
and improving the economy’s competitiveness. By changing the ownership structure, they ensure
access to know how and opportunities of obtaining funds for investments.
In the transformation period, there were deep changes in the economy’s ownership structure. The role
of the private sector increased considerably as its participation in creating value added currently stands
at ca. 80%. Between 1990 and 2011, ownership transformations covered 5,897 state enterprises, of
which 3,811 completed the process.
2011 was the final year of the “Privatisation plan for the years 2008–2011” adopted by the Council of
Ministers on 2 April 2008. In 2011, revenues from privatisation amounted to over PLN 13 billion.
14
ENTREPRENEURSHIP. Entrepreneurship makes it possible to achieve efficiency permitting the day-today operation of a company, and it creates foundations for growth. Entrepreneurship is determined by
diversified business environment conditions, such as legal regulations, tax system, labour costs, road
and telecommunication infrastructure, and also the financial and judicial system.
Regulatory environment determines the conditions in which enterprises operate. Survey respondents
name too complicated and incomprehensible law as the barrier for setting up and running business
activity. By nature, enterprises are not prepared for regulatory risks, therefore they perceive frequent
legal changes as actions against them. Therefore, legislative initiatives should respond to their
expectations, while transparency and unity of regulations should ensure there are no doubts as to
interpretation of the law so that enterprises could operate within clear and understandable norms.
Legislative actions taken by the Minister of Economy in the last year were focused on simplifying
commercial law. They were primarily intended to improve the situation of enterprises and reduce
administrative barriers. Since 1 July 2011, economic activity can be registered on-line by anybody,
without the need to visit authority offices, fill in forms and pay high fees. The law was also simplified by
two deregulation acts: the Act of 23 March 2011 on lifting administrative barriers for citizens and
entrepreneurs (Dz. U. No. 106, item 622) – the 1st Deregulation Act, which entered into force on 1 July
2011, and the Act of 16 September 2011 on reducing certain obligations of citizens and entrepreneurs
(Dz. U. No. 232, item 1378) – the 2nd Deregulation Act.
Driven by the need to stabilise the law and improve regulations in areas which demand it, the draft
“Better regulation programme for 2012–2015” was prepared. It is a continuation of government
programmes implemented by the Ministry of Economy aimed at improving the quality of new and
present laws.
The better regulation initiative is founded on the premise that legislative or non-legislative solutions
should achieve the maximum of economic, environmental and social objectives at a minimum burden on
businesses and the society. Regulatory action is justified when the adoption of a legal act allows the
prevention of market imperfections, the least costly regulation form is selected and net benefits exceed
costs. In this context, a proper structure of the regulatory policy and an efficient use of programme and
analytical instruments within its framework, such as Regulatory Impact Assessment (RIA) taking into
account the presentation of forecasted effects of action taken, is of key significance.
A properly functioning RIA system allows the identification of most important opportunities and risks
resulting from a new regulation. RIA performed at an adequately early stage supports the legislative
decision-making process and prevents the introduction of costly regulations.
A survey of entrepreneurs can be a valuable source of information about barriers they encounter when
running a business, therefore regular research is carried out among SMEs. The last survey by the
Ministry of Economy indicates that in 2011 the evaluation of the legal and institutional environment the
enterprises operate in did not significantly change compared to the previous years.
INNOVATION. As in 2010, the Innovation Union Scoreboard 2011 ranks Poland among moderate
innovators. According to the results of the study, Poland’s Summary Innovation Index (SII) is lower than
the average for all countries of the European Union, but higher (1.79%) than the EU average growth
rate of this index (0.85%).
15
MINISTRY OF ECONOMY
The indicators showing the Polish economy’s innovation level remain unsatisfactory. Their changes do
not provide any insight into progress in this area. According to analyses by the Central Statistical Office,
innovation activity of Polish enterprises between 2008 and 2010 declined slightly compared to two
previous years. Innovative enterprises comprised 18.1% of the total number of entities in industry and
13.5% in the services sector. The percentage of innovative enterprises in industry and services was
higher among public sector enterprises. Considering the size of enterprises, the highest percentage of
innovative enterprises was achieved by entities with more than 499 employees.
Among the characteristics of our economy, the low share of R&D expenditure is disturbing. While the
average R&D expenditure to GDP ratio increased from 0.57% in 2007 to 0.74% in 2010, it is only onethird of the indicator for 27 European Union countries. In addition, Poland is dealing with a relatively low
share of expenditure made by businesses and relatively higher public outlays. In 2010, the share of
enterprises in R&D financing was 26.6% thus, their participation decreased for the second year in a row.
FINANCIAL RESULTS OF ENTERPRISES. In 2011, gross and net financial results of enterprises
increased, but their profitability rates decreased.
Revenues from overall activities increased by 13.9% and tax deductible expenses increased by 14.3%.
The result on business activity increased by PLN 8.9 billion (or by 6.7%). An increase in revenues was
visible in all types of enterprise activity. The increase in financial results of economic activity was solely
due to an increase in core activity whose increase more than compensated for the deterioration of
results on other operations and financial activity. Gross and net financial results increased to PLN 141.0
billion (by 7.0%) and to PLN 116.6 billion (by 6.1%), respectively. Gross and net profitability rates
decreased from 5.4% to 5.1% and from 4.5% to 4.2%, respectively. Sale profitability increased from
5.2% to 5.3%.
By the end of 2011, debt amounted to PLN 961.0 billion, thus grew by15.2%. Since the pace of growth
in revenue was slower than that of debt, the potential possibility to repay the debt from sales revenue
has been reduced.
The financial liquidity indicators decreased: 1st degree liquidity from 42% to 40%, 2nd degree from 108%
to 105%, and 3rd degree from 149% to 148%. Financial liquidity indices exceeded the lower threshold of
the recommended bracket.
CHALLENGES. The pervasive economic crisis changed the outlook on the economy of Europe and the
World. Changes in the perception of some countries’ economies turned out particularly visible in Central
and Eastern Europe. The economies previously considered the most competitive in our region have
suffered the slowdown and its effects to a considerable extent. Only a small number of countries,
Poland included, managed to prove their resilience to the global negative economic situation. It does not
mean, however, that the countries were unaffected.
Poland’s being one of the few economies that posted growth during the economic crisis is worth to note
as it proves our economy has potential. Yet, we should remember that only the experience of
subsequent years will provide a clear answer on the condition of the Polish economy after the financial
crisis, and disregarding the threats that still exist would be inappropriate.
The 2010–2011 period was a time of consistent rebuilding of Polish economy’s development capacities
after the 2009 slowdown that was largely the result of the global economic crisis. Compared with other
European Union countries, Poland’s economic results were very good, thus placing Poland among
European growth leaders.
16
Another year of GDP increase would not be possible without effort on the part of enterprises which, in
spite of vast uncertainty due primarily to exogenous operating conditions, such as deepening fiscal
problems of euro area countries, were able to achieve positive results on their activity. The effects were
reflected by higher output sale (particularly in the industry sector, most of whose sections posted an
increase), which allowed achieving better financial results than in the previous year. Improved operation
conditions as compared to the previous year and a marked increase in expenditures are signals which
prove that the economy has been slowly stabilising.
The complex nature of the crisis and unconventional actions taken to tackle it make analysis and
coming up with development scenarios difficult. The unprecedented nature of the intervention and its
scale hinders risk estimation and prevents using the usual tools. The sources of uncertainty are the
possible steps in the framework of economic policy and new regulations of the financial system.
Changes taking place in the global environment have a significant impact on the development of
contemporary economy. The main challenges that a modern economy has to face include: demographic
change, ongoing process of global and regional integration, climate change, and changing approach
towards innovation.
Another crucial challenge is posed by proceeding globalisation processes which manifest through
increased mobility of capital and of workforce. Economic, technological and scientific links become
stronger, both on the state level as well as on the micro scale: between enterprises, universities,
research centres and regional authorities. This process is accompanied by abandoning the traditional
sources of competitiveness in its international dimension, such as low labour costs and access to cheap
natural resources, in favour of intangible assets rooted in people, organizations, communities and
regions – such assets create the intellectual capital. Approaching sustainable development brings about
the challenge of deep and effective cooperation between public administration institutions, businesses
and civic society institutions.
The fundamental determinant of current strategic decisions, also in the area of development policy, is
the unstable macroeconomic and fiscal situation of many important World economies. The visible
slowdown of economic growth in the majority of euro area countries, problems with financing debt faced
by a rising number of countries, difficulties implementing defined economic policy instruments and lack
of a clear vision of future EU actions or a target shape of cooperation threaten the EU’s development in
the short run, which also affects Poland’s situation to a considerable degree. It is in the interest of
Poland to work out effective mechanisms of combating current disturbances and a long-term integration
model. Therefore, actions focus on introducing regulations aimed at preventing such large distortions in
the future (the so-called six pack, new financial market regulations) as well as working out effective tools
to minimise the negative effects (social costs) of the economy adjustment process.
Development of the country is a complex process influenced by many internal and external factors.
Shaping the development policy requires an in-depth analysis of the factors, as well as readiness and
courage for proactive and effective minimisation of the negative impact of adverse trends. In the current
situation, it is key to differentiate between instruments targeted at long-term objectives and at temporary
objectives. Focusing on maintaining the current economic situation gives rise to the temptation of
abuse, while unsolved long-term problems only make the challenge more difficult. Poland and other EU
states face an important dilemma of introducing structural reforms which, in the future, will guarantee a
possibility to raise the level of international competitiveness in a situation when it would be
simultaneously necessary to balance public finance.
17
MINISTRY OF ECONOMY
Contemporary economic growth strategies currently created in the majority of European Union Member
States assume that long-term growth of economies would be based on knowledge. It is proposed to
build knowledge-based economies, create competitive advantages thanks to applying novel and
innovative solutions by enterprises from the industry and service sectors, and rational use of natural and
energy resources. It is noteworthy that the factor influencing the shape of a given strategy is the
development degree of an economy in a wide sense – from technical infrastructure to legal solutions
governing respective economy sectors.
Economic growth strategies are created by countries at different levels of economic development. It
should be noted that at each development stage, the national economy relies on different growth
factors: from cheap labour to knowledge and innovations. The level of innovation and its share in growth
increases while the economy moves through subsequent stages of development, yet the relation is not
simple or direct.
When looking at economic development from the point of view of strengthening innovation, it is
important to note that the innovation-building process requires innovative enterprises operating in a
competitive environment as development triggers and appropriate human capital (education, skills),
resources (savings and accumulation) and social capital (institutions, culture, cooperation).
Innovation is the key factor of permanent economy development. Therefore, it is necessary to perform
in-depth analyses and hold discussions on the right way to organise the Polish national innovation
system, create conditions for involvement in innovative projects and channel the involvement, but first of
all it is necessary to act for intensively overcoming the infrastructure development delays, bridging the
gaps in education and improving the institutional and regulatory setting.
Innovation is included in company strategies as the basis of competing on the international market to an
increasing extent. According to OECD data, two-thirds of developed countries’ growth should be
attributed to introducing innovations. Due to the developing dominance of Asian economies, such as
China, in the context of competing by low labour costs, Poland must face the limited possibilities of
competing by price. Pursuing the low costs strategy further on would result in reducing the exports of
Polish products and, consequently, an increase in unemployment. A similar threat results from the
dominance of imports of innovative products or services that are not manufactured in Poland.
Innovation is a tool that mitigates the effects of economic crises and helps solve problems currently
faced by Poland and the EU.
Innovative solutions can be conducive to meeting global challenges such as climate change, ageing of
societies and security issues. The current approach to innovation emphasises strengthening innovation
in all areas of social and economic life, also those considered traditional and non-innovative. Building a
knowledge-based economy implies the need for developing cooperation skills and the capacity to
transfer knowledge among different market actors (enterprises – research institutions – consumers). To
that end, it is necessary to take actions aimed at enhancing the role of science in economic
development.
Development of Polish enterprises requires enhancing the role of knowledge and innovation as the
driving forces of future development. It forces improving the quality of education, improving the results
of research, supporting innovation and knowledge transfer between enterprises, making full use of
information and communication technologies (ICT) and making sure that innovative ideas are turned
into new products and services that would be conducive to enhancing growth, creating jobs and solving
social problems.
18
In the context of implementing projects for strengthening the innovation of the Polish economy, it is
important for its structure to be based on two pillars: modern services and industries with the highest
potential for growth. In spite of dynamic development of services, industry will remain an important
sector of the Polish economy. It is nonetheless important to make industry modern, with advantage of
high efficiency of resources involved and an advanced research background.
Poland’s industrial structure is dominated by manufacturing of low processed goods that are material,
energy and labour intensive, with a low input of knowledge and innovation. The share of high
technology industries, which constitute the major source of economic growth in developed countries, is
low in Poland. The increase in the industries’ share will be the main direction of structural changes in
industry.
Today, the challenge in the medium and long run is to enhance the inner capacity to absorb
technologies with an appropriate potential for capital and labour productivity growth. The role of the
major growth engine will have to be gradually taken over by innovation, or inventions smoothly
transferred to the economy. Innovations are usually created and popularised as a result of cooperation
between entities, and the intensity of such cooperation is the basic factor that determines the innovation
of the entire economy. Innovation activity of enterprises and functioning of modern sectors require an
effective system conducive to supporting relations between the science and research sphere and
enterprises, one that would effectively match business partners, facilitate the flow of personnel and
forming clusters, and wide access to research infrastructure, both on the national and international
scale.
Particular attention should be paid to building relations and transferring knowledge between scientific
and research institutions and enterprises. It is crucial to facilitate acquiring information on ongoing
research projects by enterprises and the possibilities of performing commissioned research by scientific
centres. The condition necessary for Poland’s development and thus the direction of state activity is
strengthening its international position and role.
The role of innovation in the Polish economic development strategy has been highlighted by the
Innovation and Economic Efficiency Strategy (draft). The Strategy is based on four basic horizontal
rules:
− Creating knowledge – an important method of crisis recovery and laying foundations for future
development is an increase in investments in human capital. Also, creating knowledge consists in
creating conditions for uninterrupted search for new solutions, strengthening cognitive functions and
research.
− Partner cooperation – an appropriate level of social capital is a condition for cooperation based on
trust and the point of departure for the development of modern economy. It is not only important for
enterprises to have confidence in each other, but also for all participants of economic life (e.g.
general government administration, business setting institutions, scientific institutions, the judiciary).
− Effective allocation of resources – effective management of resources is key to increasing the
productivity of the Polish economy and thus to improving its competitiveness. Rational use of means
of production allows not only to reduce production costs. It is also related to striving at proper
allocation of knowledge, competences and skills, e.g. by developing so-called green jobs, ecoindustrial parks and clusters that accelerate innovation processes and facilitate commercialisation of
research.
− Strategic management – long-term thinking should be the attitude of not only enterprises, but also
institutions from the business environment in a wide sense. It should be paired with responsible
leadership that is one of the essentials behind success in implementing a strategy of an enterprise
and administration.
19
MINISTRY OF ECONOMY
Work on domestic strategic documents related to the development policy (including the Innovation and
Economic Efficiency Strategy) coincided with working out development objectives of the European
Union and its basic document: Europe 2020 A strategy for smart, sustainable and inclusive growth.
Consequently, domestic documents transfer European challenges to Poland and, by identifying national
potentials and barriers, it is possible for us to take active part in the process of defining EU strategic
objectives. The development objectives and priorities defined in domestic documents are largely similar
to European ones. Europe 2020 is a stimulus to work out actions aimed at facing up to the challenges
related to globalisation, ageing of societies and the increasing need for rational use of resources.
Europe 2020 puts forward three mutually reinforcing priorities:
1.
Smart growth: developing an economy based on knowledge and innovation;
2.
Sustainable growth: promoting a more resource efficient, greener and more competitive economy;
3.
Inclusive growth: fostering a high-employment economy delivering social and territorial cohesion.
Additionally, we should mind the challenges connected with financing development-related actions in
the next programming period. The ongoing negotiations on the shape of the Multi-Annual Financial
Framework and the cohesion policy show that there is consensus as to their supreme role in
implementing the strategy aimed at EU’s economic recovery and strengthening the group’s potential,
but their respective components face diverging interests of countries and country groups.
A properly implemented development policy will be conducive to making better use of all public funds,
which is of increasing importance in the context of limited domestic funds and rational use of EU funds,
also those under financial perspective 2014–2020. It requires working out and adopting new operational
programmes that take into account our economy’s priorities. Focusing the use of public funds on the
implementation of a limited number of projects of fundamental significance to ensuring economic growth
and enhancing the competitiveness of the Polish economy would ensure that the funds are used in an
effective way.
20
Table 1 Basic indicators of the economic situation in 1995, 2002-2011 (dynamics, previous year = 100)
No.
1.
2.
3.
3.1
3.2
Specification
Gross domestic product (current prices)
Gross domestic product (constant prices)
Domestic demand (constant prices)
Individual consumption from personal
income (constant prices)
Gross fixed capital formation (constant
prices)
4.
Industrial output
5.
6.
6.1
Prices of industrial output (annual
average)
Prices of consumer goods and services
(annual average)
Prices of consumer goods and services
(dynamics December to December)
7.
Construction and assembly
(constant prices)
8.
9.
Dwellings completed
Total investment expenditures (constant
prices)
10. Gross turnover profitability rate
10.1 - of which industry
11. Net turnover profitability rate
11.1 - of which industry
12. Exports of goods (according to SAD and
since May 2004 following SAD and
INTRASTAT)
12.1 Dynamics (previous year = 100)
13. Imports of goods (according to SAD and
since May 2004 following SAD and
INTRASTAT)
Unit
PLN bln
%
%
1995
337.2
107.0
107.0
2002
808.6
101.4
101.0
2003
843.2
103.9
102.8
2004
924.5
105.3
106.2
2005
983.3
103.6
102.5
2006
1,060.0
106.2
107.3
2007
1,176.7
106.8
108.7
2008
1,275.4
105.1
105.6
2009
1,344.4
101.6
98.9
2010
1,416.4
103.9
104.6
2011
1,524.7
104.3
103.6
%
103.2
103.4
102.1
104.7
102.1
105.0
104.9
105.7
102.1
103.2
103.1
%
116.5
93.7
99.9
106.4
106.5
114.9
117.6
109.6
98.8
99.6
108.1
PLN bln*
PLN
bln**
%*
%**
244.4
525.3
564.6
678.5
698.7
784.7
885.0
942.1
687.8
775.5
873.5
918.3
896.4
985.7
1,165.7
103.7
111.2
111.6
111.2
110.7
103.3
103.6
95.5
109.0
107.5
%
125.4
101.0
102.6
107.0
100.7
102.3
102.3
102.2
103.4
102.1
107.6
%
127.8
101.9
100.8
103.5
102.1
101.0
102.5
104.2
103.5
102.6
104.3
%
121.6
100.8
101.7
104.4
100.7
101.4
104.0
103.3
103.5
103.1
104.6
PLN bln*
PLN
bln**
%
%
thousand
27.5
66.9
67.5
70.6
78.6
94.1
118.3
136.6
82.5
101.3
125.9
147.4
154.4
160.9
178.9
117.4
115.5
133.7
109.6
112.1
165.2
105.1
160.0
104.6
135.8
112.4
131.0
109.7
101.1
108.3
112.6
105.6
99.7
100.9
93.0
101.5
67.1
97.6
162.7
108.1
114.1
113.7
118.1
115.4
%
117.1
90.0
100.6
106.5
107.7
116.8
120.4
110.7
99.2
100.2
109.4
%
%
%
%
4.2
4.9
2.0
2.3
0.8
1.2
-0.2
0.2
2.8
3.8
1.7
2.5
6.0
7.4
4.8
6.0
4.9
6.0
3.9
4.8
5.8
6.7
4.7
5.4
6.1
7.0
5.0
5.9
4.2
4.4
3.3
3.5
5.0
5.8
4.1
4.8
5.3
6.5
4.4
5.5
5.4
7.3
4.5
6.1
EUR mln
16,765.2
43,229.9
47,398.7
59,583.8
71,380.8
%
117.6
107.5
109.5
125.6
119.6
EUR mln
21,272.3
58,211.8
60,182.8
71,330.9
87,925.9 101,838.7 116,243.8 98,218.0 120,373.1 136,693.9
123.1
115.8
114.1
84.5
122.6
113.6
81,156.0 100,784.1 120,389.5 142,447.9 107,528.9 134,188.4 152,568.4
No.
Specification
14. Trade turnover balance
15. Balance on the current account of the
balance of payments
15.1 - in % GDP
16. Employed in national economy
(annual average)
17. Average employment in the economy
18.
Unit
%
EUR mln
1995
119.1
-4,507.1
EUR mln
659
-5,924
-4,878
-10,736
-5,856
-10,425
-19,245
-23,799
-12,152
-16,493
-15,974
%
thousand
person
%
thousand
person
thousand
person
thousand
person
%
0.6
-2.8
14.590
12.729
97.8
8,759.5
8,736.5
-2.5
-5.3
-2.4
-3.8
-6.2
-6.6
-3.9
-4.6
-4.3
12.663
12.615
12.728
12.880
13.334
13.881
13.769
13.726
13.810
99.5
99.6
100.9
101.2
103.5
104.1
99.2
99.7
100.6
8,661.7
8,640.2
8,786.7
8,965.9
9,387.7
9,850.8
9,768.1
9,744.8
9,830.1
99.1
99.7
101.7
102.0
104.7
104.9
99.2
99.8
100.8
14.735
101.8
9,360.0
102.8
2002
2003
2004
103.7
103.4
118.2
-14,881.9 -12,784.1 -11,747.2
96.8
2005
113.8
-9,775.1
2006
2007
2008
124.2
119.5
118.3
-12,858.2 -18,550.8 -26,204.1
2009
75.5
-9,310.9
2010
2011
124.8
113.7
-13,815.3 -15,874.5
Number of registered unemployed (as of
2,628.8
3,217.0
3,175.7
2,999.6
2,773.0
2,309.4
1,746.6
1,473.8
1,893.0
1,954.7
1,982.7
the end of the year)
18.1 Dynamics (previous year = 100))
92.6
103.3
98.7
94.5
92.4
83.3
75.6
84.4
128.4
103.3
101.4
19. Registered unemployment rate3) (as of the
18.0
%
14.9
20.0
19.0
17.6
14.8
11.4
9.5
11.9
12.3
12.5
end of the year)
20.0
20. Average nominal monthly gross salary in
PLN
690.9
2,097.8
2,185.0
2,273.4
2,360.6
2,475.9
2,672.6
2,942.2
3,101.7
3,224.1
3,399.5
the national economy
20.1 - in the enterprise sector
PLN
754.2
2,277.4
2,341.5
2,438.6
2,515.7
2,643.8
2,889.1
3,185.8
3,324.9
3,434.6
3,604.7
21. Average real monthly gross salary in the
%
102.8
100.7
103.4
100.7
101.8
104.0
105.5
105.9
102.0
101.5
101.4
national economy
21.1 - in the enterprise sector
%
103.2
101.5
102.0
100.8
101.2
104.2
106.8
106.1
101.1
100.8
100.9
22. Dynamics of labour productivity (as gross
%
105.1
103.6
104.1
105.6
102.4
104.7
103.2
100.9
102.6
104.0
103.4
value added per 1 employee
(previous year= 100)
23. State budget balance
PLN mln -10,100
-39,403
-37,043
-41,417
-28,361
-25,063
-15,956
-24,591
-23,845
-44,591
-25,124
23.1 - in % GDP
%
-3.0
-4.9
-4.4
-4.5
-2.9
-2.4
-1.4
-1.9
-1.8
-3.2
-1.7
* - NACE 2004 (PKD 2004, Polish Classification of Activities 2004); ** - NACE 2004 (PKD 2007 Polish Classification of Activities 2007)
1 The indicator of production volume and prices of industrial output for the years 2000 – 2008 has been calculated using base prices. For 1995, it was calculated on the basis of producer prices.
2 Profitability indicators in the whole economy and in the industry sector are calculated for businesses exceeding 50 employees in the mining, quarrying and in the manufacturing sectors, while
in other sectors they are calculated for businesses exceeding 20 employees (in 1995); 2002-2011 data is calculated for businesses exceeding 49 employees in all economy sectors.
3 2002 data takes into accounts both workers on individual farms in the sector of agriculture using the results of the National Agricultural Census 1996 (numerator), the National Population and
Housing Census 2002 and the National Agricultural Census 2002 (denominator).
Source: CSO, NBP and Strategy and Analyses Department, Ministry of Economy calculations.
POLAND 2012 - ECONOMY REPORT
PART I
POLAND AND THE WORLD
1. MAJOR TRENDS IN THE WORLD ECONOMY
1.1. General description of the situation in the World
economy in 2011
After a swift recovery of production and international trade, and revival of investments and employment
in 2010, 2011 saw a slowdown in the global output growth to 3.9% (from 5.3%). Another deceleration in
the economy proved that the economic disturbances that gave rise to the 2008–2009 crisis were not
entirely removed and keep affecting a number of economies. The major effects of the global financial
crisis for European markets consist in tensions in the area of public finance and a serious sovereign
debt crisis in the euro area, thus threatening the single currency. The disturbances result not only in a
slowdown in the EU economy, but also in many other regions of the World, particularly in countries for
which European markets are the major trade partners.
In the past two years, the condition of the global economy was also shaped by non-economic events,
which translated into growth slowdown and gradual decrease of the degree of forecasted future growth.
One of the factors, which are largely unforeseeable in the long run, are natural disasters. In 2010 and
2011, the volcano eruptions in Iceland, tsunami and earthquakes in Japan (resulting in a nuclear threat)
and the enormous flood in Thailand by the end of 2011 had a considerable impact on global production,
mainly through strong influence on global supply and cooperation relations in production processes. In
addition, the political situation in North Africa and Middle East has not fully stabilized since the end of
2010, which results in uncertainty as to the potential impact of this situation on the global economy,
particularly in terms of oil supply and prices.
The above-mentioned disturbances exerted also an impact on international trade. Strong global
production links result in its high vulnerability to changes in the economic cycle, which translates into
fluctuations of global trade value that are higher than changes in GDP. While in 2011 the GDP growth
rate lowered by 1.4 pp, the increase in the volume of global trade in goods and services was reduced to
5.9%, i.e. nearly 7 pp lower than in the previous year.
The results of individual economies for 2011 also confirm the trend, observed for many years now, that
developing and emerging markets develop at a faster pace than the developed ones. In developed
countries, GDP increased by 1.6%, which is a half of the 2010 growth rate. In developing countries in
turn the deceleration of the 2011 growth was much smaller: from 7.5% to 6.2%.
23
MINISTRY OF ECONOMY
Table 2 GDP growth rate in constant prices as compared to the previous year
2010
2011
2012**
World
5.3
3.9
3.5
Developed countries
3.2
1.6
1.4
USA
3.0
1.7
2.0
EU-27
2.0
1.6
0.0
Eurozone
1.9
1.5
-0.3
Germany
3.6
3.1
1.0
Japan
4.4
-0.7
2.4
Developing Asian countries
7.5
6.2
5.6
CIS
4.8
4.9
4.1
Russia
4.3
4.3
4.0
Middle East and North Africa
5.0
3.5
5.5
Sub-Saharan Africa
5.3
5.2
5.4
Latin America and Caribbean
6.2
4.5
3.4
Asian developing countries
9.7
7.8
7.1
China
10.4
9.2
8.0
India
10.8
7.1
6.1
New industrialised Asian economies*
8.5
4.0
2.7
* Hong Kong, Republic of Korea, Singapore, Taiwan
Source: Strategy and Analyses Department, Ministry of Economy based on the IMF data from July 2012.
Although the slowdown in growth observed since the 2nd half of 2011 influenced advanced economies to
the widest extent, within the large group of developing markets there are also some markets which
suffered losses due to their substantial dependence on demand for imports from developed countries.
High global prices of raw materials constituted another factor which had a negative impact on those
emerging markets.
Similarly to GDP, significant turbulences in trade were observed in developed countries, where exports
of goods and services increased by 5.4% (in comparison to 12.2% in 2010), whereas imports increased
by 4.4% (i.e. 2.6 times slower than in the previous year). At the same time trade in goods and services
in developing countries increased by 6.6% on the exports side and by 8.8% on the imports side, while in
2010 the increase amounted to 14.4% and 15.3%, respectively.
During the 2008–2009 recession, the post-crisis recovery and another slowdown in the 2nd half of 2011,
large developing economies such as China and India remained leaders in terms of economic growth.
Although their growth also decelerated in 2011, mainly due to turbulences in their external environment,
the role of these markets and their strength increased considerably in the past several years not only in
economic, but also in political terms.
1.2. Economic situation on the most important global markets
1.2.1. The United States
The economic condition of the United States, which are the World’s biggest and most technologically
advanced economy, impacts on Poland’s economic situation both indirectly and directly due to the
influence exerted on other global markets, including especially euro area markets of key importance for
Poland.
After the period of post-crisis growth in 2010, when GDP has grown by 3%, i.e. the rate of growth was
faster than in 2008, in 2011 the US economy witnessed an economic downturn (an increase of 1.7%).
24
To a significant degree this was a consequence of the decrease in the level of government expenditure
both on state and federal level.
Among the factors which were conducive to economic growth in the US in 2011 it is important to
mention private consumption, which has grown slightly faster than in the previous year (by 2.2%), and
gross fixed capital formation, which increased by 3.7% in comparison to 2% in 2010.
In 2011 the situation on the US labour market had improved slightly. The unemployment rate, which
amounted to 9.6% in the previous year, decreased to under 9%. The greatest number of jobs were
created in business services and industrial production sectors. On the other hand, the level of
employment in government institutions has been lowered. In 2011 the average wage in US economy
increased, though more slowly than in the previous year and more slowly than consumer prices, which
increased by 3.1%, i.e. nearly twice as fast as in the previous year. Increase in the inflation index
resulted mainly from the increase in food and energy prices.
Uncertain situation on the European markets, which are the recipient of approx. 20% of US goods, as
well as general slowdown in global economy contributed to lowering trade exchange between the US
and other countries. After a relatively fast increase in the exports volume of goods and services in 2010
(by 11.3%), this growth slowed down to 6.7% in 2011. The growth rate of imports of goods and services
was also lower (by 4.9%, i.e. 2.5 times slower than in the previous year). The decrease in exports
observed in the US in 2011 was slower than in other developed economies. The negative impact of the
economic downturn on global markets was to a certain extent alleviated owing to pro-exports influence
of depreciation of US dollar in relation to other major currencies, which intensified in this period. In 2011
the exchange rate of the currency of the euro area against US dollar rose in nominal terms by 5%, the
exchange rate of Japanese yen rose by 10% and the exchange rate of Swiss Franc rose by 17%.
In accordance with OECD forecasts it is expected that the growth in trade exchange volume in 2012 will
decrease further to 4.9% on the exports side and 3.9% on the imports side.
In line with predictions of international organisations’ researchers the US economy will accelerate
slightly in 2012 – according to IMF by 2%, and according to OECD a bit more – by 2.4%. The principal
factor behind this acceleration will be the continued increase in gross fixed capital formation (of 4.4%).
At the same time the level of private consumption will remain on a similar level as in 2011 (increase of
approx. 2.3%). It is also expected that in 2012 the unemployment rate will decrease further (to 8.1%),
along with the inflation index (to 2.3%). In June 2012 the US Federal Reserve amended in minus its
April forecasts regarding the growth in US GDP for 2012 from 2.4–2.9% to 1.9–2.4%, and for 2013 from
2.7–3.1% to 2.2–2.8%.
Table 3 Basic growth indices of the US economy (as compared to the previous year) in %
2010
2011
2012*
2013*
GDP
3.0
1.7
2.4
2.6
Domestic demand
3.4
1.6
2.3
2.7
Private consumption
2.0
2.2
2.3
2.6
Gross fixed capital formation
2.0
3.7
4.4
6.3
Consumer prices
1.6
3.1
2.3
1.9
Unemployment rate
9.6
8.9
8.1
7.6
Exports (goods and services)
11.3
6.7
4.9
6.7
Imports (goods and services)
12.5
4.9
3.9
6.2
Current account balance (% GDP)
-3.2
-3.1
-3.7
-4.3
* forecast
Source: Strategy and Analyses Department, Ministry of Economy based on OECD data from May 2012.
25
MINISTRY OF ECONOMY
1.2.2. Japan
Severe earthquakes and tsunami of March 2011 were the biggest disaster in the post-war history of
Japan, transforming directly into the economic condition of this Asian market. Japanese gross domestic
product, after increasing by 4.5% in 2010, in 2011 lowered by 0.7%. The events of 1Q11 also
contributed to increasing the Japanese public finance deficit and public debt.
The decrease of GDP was primarily the result of slowdown in exports, which for many years has been
the driving force of Japanese economy. Following the increase in the exports volume of goods and
services in 2010 (increase of approx. 24%), the exports volume witnessed a period of stagnation in
2011. As in the case of other economies, this situation was the result of economic downturn on global
markets, including the economic downturn in China. The exchange rate of Japanese yen, which in 2011
achieved highest level in history (it rose by 10% against US dollar), as well as massive floods in
Thailand in October 2011, which caused disturbances in the supply of parts for automotive and
electrical and mechanical industry, which in turn contributed to lowering the production rate, were also
not beneficial to Japanese exports. The imports volume of goods and services increased by 5.8%, i.e.
twice slower than in the previous year. Unfavourable changes in foreign trade of Japan converted into
lowering the current account surplus in 2011 from 3.6% to 2.1%.
The situation of Japanese entrepreneurs improved slightly in 1Q12 as a result of yen depreciation. In
2011, the Japanese government allocated a total amount of JPY 14.3 trillion for interventions on the
foreign exchange market (approx. EUR 184.5 billion), of which approx. JPY 9 trillion in 4Q11.
It can be expected that in 2012 Japan will return to the path of economic recovery (according to OECD
the estimated growth will amount to 2%). The main determinant of this forecast is based on the
assumption that necessary actions in the field of restructuring and modernizing the country's
infrastructure and rebuilding its production capacity after the last year's disaster will be undertaken. It is
estimated that such activities will lead to an increase in investments and will contribute to decreasing
the unemployment rate to 4.5% (from 4.6% in 2011). On the other hand the imports volume of goods
and services is expected to increase by 3.8% in 2012 – therefore the rate of increase will still be faster
than the increase in exports, though this situation will probably change already in 2013.
Table 4 Basic growth indices of the Japanese economy (as compared to the previous year) in %
2010
2011
2012*
2013*
GDP
4.5
-0.7
2.0
1.5
Domestic demand
2.7
0.1
2.3
1.3
Private consumption
2.6
0.1
2.2
1.2
-0.1
0.5
2.3
2.8
Consumer prices
-0.7
-0.3
-0.2
-0.2
Unemployment rate
5.1
4.6
4.5
4.4
Exports (goods and services)
24.4
0.0
2.3
6.5
Imports (goods and services)
11.1
5.8
3.8
4.9
3.6
2.1
1.6
1.9
* forecast
26
1.2.3. Western Europe and the euro area
After a period of post-crisis economic recovery in the euro area in 2010 (GDP increase of 1.9%), in 2011
the growth lowered to 1.5%. Economic growth in the euro area slowed down gradually in the
consecutive quarters of 2011, while in 1Q12 GDP decreased slightly (by 0.1%) for the first time since
the end of 2009. The condition of the euro area was influenced by information on structural weaknesses
identified in public finances and bank systems of many countries of the euro area disclosed in the 2nd
half of 2011, which later contributed to the development of sovereign debt crisis (in Greece, Spain,
Ireland, Portugal), potentially threatening the stability of the euro area and the entire EU.
Among the countries belonging to this area, in 2011 GDP decreased on three markets, i.e. in Greece
(by 6.9%), Portugal (by 1.6%) and Slovenia (by 0.2%). On the other hand the best economic results
were observed in Estonia (GDP growth of 7.6%), Slovakia (of 3.3%) and Germany and Austria (both of
3%).
The rapid deepening of the sovereign debt crisis entailed increasing uncertainty as well as an
investment risk and debt servicing costs not only for the most indebted countries, but also for other
countries, in particular for Germany and France, whose banks were involved in financing periphery
economies before the crisis to the greatest extent. Significant amounts of rescue funds which were
granted for these economies until now and which are planned to be disbursed in the future do not
guarantee that the sovereign debt crisis will be tackled and its negative impact on the euro area
economy and, indirectly, also on the condition of all the EU Member States, will be halted. The
economic slowdown in the biggest economies of the euro area converted into a similar trend in the
whole EU, where the average rate of GDP growth decreased from 2.5% in 1Q11 to 0.8% in 4Q11, and
in the whole 2011 amounted to 1.5% as compared to 2.1% in the previous year.
The lower rate of economic growth in the euro area was determined by the decline in the consumer and
business confidence, resulting in the decrease in internal demand, which for many past years was the
main force behind the growth in Polish exports and general commodity trade. In 2011 the internal
demand of the euro area increased by 0.6%, i.e. twice slower than in the previous year. Among the
members of the euro area the level of demand was the lowest in Greece and Portugal, where it
decreased by 8.5 and 5.7%, respectively. On the other hand the greatest increase in internal demand
was observed in Estonia (of 11.5%), Luxembourg (of 4.5%) and Finland (of 4.4%).
Inflation measured by the HICP index increased from 1.6 to 2.7% in 2011 due to higher prices of food
and energy. The situation on the labour market of the euro area worsened in 2011. The high
unemployment rate amounting to 9.9% increased slightly to 10%, though among the countries
belonging to this area there is a high disproportion with regard to its level. The worst situation is in Spain
and Greece, where the unemployment rate amounted to more than 20% and approx. 18%, respectively.
Against this background the situation in Austria and the Netherlands appeared to be relatively good
(unemployment rate amounting to barely 4.5%). A negative trend on the labour market of the euro area
may continue in the subsequent years, with the unemployment rate increasing to 10.8% in 2012 and
11.1% in 2013.
The need to reduce the public finance deficit on individual markets of the euro area, combined with
strong risk aversion on the financial markets and continuing uncertainty with regard to the situation on
the global market will transform into a slowdown in the real economy of this area. According to OECD
forecasts the euro area will experience mild recession in 2012 (GDP decrease of 0.1%), and in the next
year it will get on the path of gradual growth (GDP increase of 0.9%). The causes of economic
27
MINISTRY OF ECONOMY
recession in 2012 will include the decrease of internal demand (of 1.2%) and lower gross fixed capital
formation (of 1.8%). On the other hand the inflation index is expected to decrease in 2012 (to 2.4%).
Against the background of uncertain situation in the global economy in 2011, the German market, which
plays a crucial role for Poland, achieved relatively good results. In the scope of the whole year the
German economy has grown at the rate of 3%. However, it is expected that gradual decrease in
German GDP observed in quarterly terms will continue – in such case the economic growth of Germany
in 2012 will amount to 0.7% (according to the European Commission).
Relatively good condition of the German economy in 2011 was a result of favourable situation on the
internal market. In 2011 the internal demand in Germany increased by 2.4%, while private consumption,
which in the recent years was one of the key factors conducive to economic growth in Germany,
increased by 1.4%. Moreover, the situation on the labour market improved. The unemployment rate,
which amounted to 6.8% in the previous year, decreased to 5.7%. It is estimated that in 2012 the
unemployment rate will decrease to 5.4%.
Table 5 Basic growth indices of the Eurozone (as compared to the previous year) in %
2010
2011
2012*
2013*
GDP
1.9
1.5
-0.1
0.9
Domestic demand
1.2
0.6
-1.2
0.3
Private consumption
0.9
0.2
-0.5
0.3
-0.7
1.5
-1.8
1.3
Consumer prices
1.6
2.7
2.4
1.9
Unemployment rate
9.9
10.0
10.8
11.1
0.4
0.5
1.0
1.5
* forecast
1.2.4. Developing Asian markets
Economic downturn in global economy in 2011 also transmuted into a decrease in growth in Asian
countries, though this region still developed at a fairly high rate (5.9%). The growth on developing Asian
markets was significantly more dynamic (7.8%) than growth on developed markets (1.3%), mainly due
to the recession of Japanese economy, where GDP decreased by 0.7%. As mentioned above, the
economic downturn in Japan in 2011 was a consequence of the natural disaster which struck this
country in March.
Deceleration of growth in Asia, observed mainly since 4Q11, resulted from both external and internal
factors, though the impact exerted by the former was definitely stronger. The most noticeable
consequence of the crisis in the euro area for Asian economies was the decrease of growth rate of their
exports to Europe.
Tsunami and floods which caused enormous amount of damage in Japan in March 2011 were not the
only cataclysm which struck Asia and had a negative impact not only on the individual economies of this
region, but on the whole global market. In Autumn Thailand was hit by a flood, causing a decrease in
GDP in 4Q11, which consequently resulted in minimal annual GDP growth in 2011 (by 0.1%). In case of
Japan and Thailand the damage caused by the elements had an impact on global production relations,
in which both these countries take an active part, but ultimately the disturbance in global supply chains
was not as significant as initially expected.
28
In general, relatively good results achieved by most Asian economies in 2011 stemmed from high
internal demand, which allowed some of them to compensate for the decrease in the exports growth
rate. This was the case with regard to Chinese economy, which constitutes the most important economy
in this part of the World and which for several years was able to maintain relatively high economic
growth despite difficult external conditions, though even this economy was affected by the economic
downturn in the previous year. Chinese GDP increased by 9.2% as compared to GDP growth of 10.4%
in 2010. As mentioned above, high consumption and large investments, determined by growing income
of households and high profits of companies, were the main drivers of growth in China.
The Chinese economy, similarly to many markets in this region, still faces the problem of high inflation.
In 2011 the prices of investment goods in China increased by 6.8%, while the prices of consumer goods
increased by 5.4%, including a 12% increase in the prices of food, which is most burdensome for the
poorer inhabitants of the country, whose food expenses account for approx. 40% of their income.
India remained one of the global growth leaders in 2011, though the GDP dynamics on the Indian
market was also lower than in the previous year (GDP increase of 7.1% in comparison to 10.8%). This
situation, similarly to the situation in other economies of this area, was influenced by worsening external
conditions (mainly the crisis in the euro area, increase in the prices of crude oil), which were deepened
by the tightening of monetary policy in order to limit excessive inflation. In the recent years the Indian
economy has been faced with a significant increase in consumer goods prices – of 10.9% in 2009 and
of 12% in 2010, though in 2011 it was decreased to 8.6%, However, the implementation of antiinflationary monetary policy resulted in a decrease of the rate of industrial production and investments.
According to IMF forecasts the Asian countries will develop at an average rate of 6% in 2012, i.e.
slightly faster than in 2011. The highest GDP growth is still expected to occur in China (of 8.0%) and
India (of 6.1%).
In this region the exports of the countries belonging to ASEAN was hit the hardest by turbulences in
World economy, especially the crisis in the euro area. However, the high level of internal demand on
these markets allowed them to compensate for the decrease in external demand – this was the case
especially in Indonesia. On the other hand in Thailand the economic recovery after the flood is expected
to be achieved through fiscal state aid.
Table 6 GDP growth rate and consumer prices (as compared to the previous year) in %
GDP
2010
10.4
10.8
3.8
6.2
7.8
7.6
7.2
6.8
6.3
10.7
7.0
14.8
2011
9.2
7.1
2.4
6.5
0.1
3.7
5.1
5.9
3.6
4.0
5.0
4.9
2012*
8.0
6.1
3.4
6.1
5.5
4.2
4.4
5.6
3.5
3.6
2.6
2.7
2013*
8.5
6.5
3.5
6.6
7.5
4.7
4.7
6.3
4.0
4.7
4.2
3.9
2010
3.3
12.0
10.1
5.1
3.3
3.8
1.7
9.2
2.9
1.0
2.3
2.8
Consumer prices
2011
2012*
5.4
3.3
8.6
8.2
13.7
12.0
5.4
6.2
3.8
3.9
4.8
3.4
3.2
2.7
18.7
12.6
4.0
3.4
1.4
1.3
5.3
3.8
5.2
3.5
China
India
Pakistan
Indonesia
Thailand
Philippines
Malaysia
Vietnam
Republic of Korea
Taiwan
Hong Kong
Singapore
* forecast
Source: Strategy and Analyses Department, Ministry of Economy based on the IMF data from July 2012.
29
2013*
3.0
7.3
12.5
6.0
3.3
4.1
2.5
6.8
3.2
1.8
3.0
2.3
MINISTRY OF ECONOMY
1.2.5. The Commonwealth of Independent States
In 2011 the GDP of CIS economies grew by 4.9%. The most important drivers of growth on these
markets included the prices of crude oil and raw materials, which remained relatively high, as well as
significant increase in agricultural production in the economies which were hit by drought in the previous
year (such as Russia, Kazakhstan, Belarus and Armenia). Agricultural production in Russia increased
by 22% in 2011, which was enough to compensate, with surplus, the heavy decrease of the previous
year. Moreover, the economic growth was supported by high level of internal demand on CIS markets.
Even though the above mentioned factors allowed the Commonwealth to achieve a higher GDP growth
than the global average, at the end of 2011 these economies started to feel the influence of slowdown
caused by the sovereign debt crisis in the euro area. Moreover, the national currency of most CIP
countries, including the Russian rouble, depreciated in 2011.
Among the economies of this region the highest GDP growth in 2011 was observed in Turkmenistan
(14.7%), as well as Uzbekistan (8.3%), Kazakhstan (7.5%) and Tajikistan (7.4%). On the other hand,
the economy of Azerbaijan had the slowest growth rate – it has grown by only 0.1%. The growth in the
Russian economy, which holds a dominating position in this group, amounted to 4.3% and was the
same as the growth observed in the previous year.
CIS countries are still characterised by a high level of inflation. In 2011 the increase in prices amounted
to 10.1% and was approx. 3 pp higher than in the previous year. Inflation on CIS markets in the 1st half
of2011 stemmed primarily from high food and fuel prices. The situation changed in the second half of
the year – the increase in prices decelerated due to good harvests, weakening of the economic activity
and introduction of monetary restrictions in many economies of this region.
Due to worsening external conditions, GDP growth in CIS countries will decrease in 2012 to approx.
4.1%. A moderate decrease in growth in the Commonwealth is expected even if the prices of crude oil
remain at a relatively high level. The growth in the largest economy of the region – Russia – is expected
to amount to 4%. The growth in other CIS countries which exports energy raw materials is expected to
amount to 5.8% in 2012. Despite the weakening growth rate in global economy, the terms of trade will
translate into a relatively fast growth for this group of markets and will contribute to the increase in
investments in the oil and mining industry (Kazakhstan), as well as investments in infrastructure
(Kazakhstan, Uzbekistan).
On the other hand in CIS countries which imports energy raw materials the deceleration of growth will
be influenced by both internal and external factors. It is estimated that GDP of Ukraine will increase by
3%, and deceleration will result e.g. from the tightening of fiscal and monetary policy and weakening
exports. A similar growth is expected in the case of Belarus, where the economic downturn is mainly the
consequence of currency crisis and restrictive fiscal and monetary policy, which was introduced in order
to combat very high level of inflation.
Uncertainty associated with sovereign debt crisis in the euro area and mild recession, which may take
place on the markets of the euro area, is the greatest threat to the development of the economic
situation in this region. It is estimated that European countries are the recipients of approx. 1/3 of the
CIS exports – therefore the economic downturn in Europe may decrease the growth rate of exports of
the countries belonging to the Commonwealth, especially Russia. Another factor which may have a
negative impact on the economic growth in CIS countries is the potential decrease in global prices of
goods and raw materials. However, the prices of energy raw materials, on which the economies of CIS
30
countries are strictly dependent, may remain high due to political tensions in the Middle East and in
North Africa.
Table 7 GDP growth rate and consumer prices (as compared to the previous year) in %
GDP
Consumer prices
2010
2011
2012*
2013*
2010
2011
2012*
2013*
CIS**
4.8
4.9
4.1
4.1
7.2
10.1
7.1
7.7
Russia
4.3
4.3
4.0
3.9
6.9
8.4
4.8
6.4
Ukraine
4.1
5.2
3.0
3.5
9.4
8.0
4.5
6.7
Kazakhstan
7.3
7.5
5.9
6.0
7.1
8.3
5.5
7.0
Belarus
7.7
5.3
3.0
3.3
7.7
53.2
66.0
35.8
Azerbaijan
5.0
0.1
3.1
1.9
5.7
7.9
5.6
6.1
Turkmenistan
9.2
14.7
7.0
6.7
4.4
5.8
6.2
7.0
Uzbekistan
8.5
8.3
7.0
6.5
9.4
12.8
12.7
10.9
Armenia
2.1
4.4
3.8
4.0
7.3
7.7
4.0
4.2
Tajikistan
6.5
7.4
6.0
6.0
6.5
12.4
7.9
8.4
Kyrgyzstan
-0.5
5.7
5.0
5.5
7.8
16.6
4.1
8.1
Moldova
7.1
6.4
3.5
4.5
7.4
7.6
5.5
5.0
* forecast; ** - including Georgia and Mongolia (both countries are not CIS members), which are presented by IMF together
with Commonwealth countries, because of their geographical location and economic structure similarities to CIS countries.
Source: Strategy and Analyses Department, Ministry of Economy based on the IMF data from April and July 2012.
1.3. Real increase in the global trade in goods in 2011
The volume of global trade in goods, following its decrease by 10.5% during the crisis, increased
significantly in 2010 (by 12.8%). However, this tendency did not continue in the following year. In 2011
the increase in volume of trade in goods and services was lower (it amounted to 5.9% according to data
submitted by IMF).
Table 8 The rate of changes in the World volume of trade and services exchange in the years 2010-2013
(as compared to the previous year, %)
2010
2011
2012*
2013*
World
12.8
5.9
3.8
5.1
Exports
Developed countries
12.2
5.4
2.3
4.3
Developing countries
14.4
6.6
5.7
6.2
Imports
Developed countries
11.5
4.4
1.9
4.2
15.3
8.8
7.8
7.0
*forecast
Source: Strategy and Analyses Department, Ministry of Economy based on the IMF data from April and July 2012.
In developing countries exports increased by 6.6%, i.e. by 1.2 pp faster than in developed economies.
The difference in the growth rate of imports in these two groups of markets was even greater – in the
developed countries it increased by 4.4% as compared to the previous year, while in developing
countries it increased by 8.8%. According to WTO data the volume of global exports of goods increased
by 5% in 2011 in comparison to 13.8% in 2010. The volume of exports of goods from economically
developed countries increased by 4.7% in 2011, due to relatively fast growth of exports in the United
States (by 7.2%) and the European Union (by 5.2%), on the one hand, and a negative influence of
decrease in the volume of Japanese exports (by 0.5%), on the other hand. The volume of imports of
developed economies increased by 2.8% in comparison to 10.9% in the previous year, i.e. at nearly half
the rate of the volume of exports of this group.
31
MINISTRY OF ECONOMY
The volume of commodity trade increased faster in developing and less-developed countries. The
volume of their exports increased by 5.4%, while in the previous year it amounted to 14.9%. In this
group of economies – in contrast to developed countries – the growth rate of imports (amounting to
7.9%) was higher than the growth rate of exports, while the volume of imports from developing markets
increased nearly 3 times faster than the volume of imports from developed countries.
Table 9 The rate of changes in the World volume of trade exchange in the years 2008-2011 (as compared
to the previous year, %)
2009
-12.0
-14.8
-14.0
-8.1
-14.1
-14.5
-4.8
-3.7
-4.6
-11.4
-10.5
-24.9
-6.0
-5.7
Exports
2010
13.8
14.9
15.4
5.6
10.9
11.5
6.0
3.0
6.5
22.7
28.4
27.5
22.0
20.9
2011
5.0
6.2
7.2
5.3
5.0
5.2
1.8
-8.3
5.4
6.6
9.3
-0.5
16.1
6.0
2009
-12.9
-16.6
-16.4
-16.5
-14.1
-14.1
-28.0
-5.1
-7.7
-7.7
2.9
-12.2
3.6
-11.4
Imports
2010
13.7
15.7
14.8
22.9
9.7
9.5
18.6
7.3
7.5
18.2
22.1
10.1
22.7
17.9
World
North America
USA
Central and South America
Europe
EU-27
CIS
Africa
Middle East
Asia
China
Japan
India
New industrialised Asian economies*
* Hong Kong, Republic of Korea, Singapore, Taiwan
Source: Strategy and Analyses Department, Ministry of Economy based on the WTO data from July 2012.
2011
4.9
4.7
3.7
10.4
2.4
2.0
16.7
5.0
5.3
6.4
9.7
1.9
6.6
2.0
Taking into account individual regions, the greatest increase in the exports volume in 2011 was
observed in Asia (of 6.6%), which was determined by the situation in India (increase of 16.1%) and
China (increase of 9.3%). At the same time the exports of the countries belonging to the group of newly
industrialized Asian economies increased by 6% in 2011. The imports of Asian countries increased at a
slightly slower rate than their exports (by 6.4%). While in China the growth in the volume of imports (by
9.7%) turned out to be slightly faster than the growth in the volume of exports (by 0.4 percentage point),
in India imports increased by 6.6%, i.e. almost 2.5 times slower than exports.
In 2011 the volume of exports increased relatively quickly in North America (by 6.2%) and Europe (by
5%), while the increase in the volume of imports in these regions was slower – of 4.7% and 2.4%,
respectively. The volume of exports in the United States economy, which is a dominating economy of
North America, increased by 7.2%, i.e. at a faster rate than the average rate for this region. A similar
situation occurred in Europe, where the volume of exports of the European Union increased at the rate
of 5.2%, i.e. slightly faster than the rate for the entire region.
The rate of increase in the volume of exports in the countries belonging to the Commonwealth of
Independent States was low (1.8%), while on the imports side it was significantly faster than average
(increase of 16.7%).
The only region which experienced a decrease in the volume of exports in 2011 was Africa, where it
was lower by 8.3% than in the previous year. At the same time the volume of imports to this part of the
World increased in 2011 by 5%.
32
1.4. Prices and exchange rates in international trade in goods
in 2011
1.4.1. World prices fluctuations
The prices of raw materials in 2010 and in the 1st half of 2011 were showing a growing tendency. On the
other hand, recession on certain European markets and the economic downturn in developing countries
in the second half of the year contributed to a decrease in global demand for raw materials, which,
paired with their increased supply, resulted in a decrease in their prices. Despite these decreases, the
prices of raw materials in real terms still remained relatively high.
Lower prices of raw materials in 2011 were caused by greater than before uncertainty with regard to
global economy prospects, worsening macroeconomic results of many countries, as well as the crisis in
the euro area. At the same time the rate of economic growth in developing countries and in emerging
economies was lower than expected. Especially the stagnation on Chinese property market and lower
demand for raw materials on the Chinese side contributed to lowering the prices of raw materials.
Demand for raw materials decreased also in Japan (due to lower production resulting from the natural
disaster in March) and in the United States.
After increasing significantly at the turn of 2010 and 2011, the prices of metals decreased visibly in the
2nd half of 2011. The decrease in the prices of metals caused by the weakening of the growth rate of
industrial production and worsening of growth prospects in highly developed countries intensified in
September 2011. As a result the value of metal price index estimated by the IMF increased by 13.5% in
this period, while in the previous year it increased by more than 48%.
As in the case of other raw materials, the food prices in 2010 and at the beginning of 2011 shown a
growing tendency. Unfavourable weather conditions in the 2nd half of 2010 contributed to a significant
increase in the prices of food, in particular due to increased price of cereals. Better global harvest of
cereals in 2011 helped replenish the supplies. As a results prices of food decreased in the 2nd half of
2011. On the yearly basis food price index calculated by the IMF increased by almost 23%. However,
the food prices growth rate was lower by one third as compared to the rate in 2010.
In contrast to non-energy mineral raw materials, the prices of crude oil were increasing throughout 2011.
The prices of such raw materials were dependent on the geopolitical situation in the countries exporting
crude oils. Unstable situation in the Arab countries, especially in Libya, contributed to the increase in
crude oil prices in the 1st half of 2011. Disturbances in crude oil production in this country limited free
production capacity of the OPEC countries, increasing tensions of geopolitical nature on the supply side
of the crude oil market. The imposition of international sanctions on Iran added to the pressure on
increasing prices. After fluctuating in the range between USD 100 and USD 115 in 2011, the price of an
oil barrel increased to USD 126 in March of 2012. Crude oil prices have been systematically decreasing
since then. At the end of the 1st half of 2012 the price of an oil barrel amounted to approx. USD 90 per
barrel.
33
MINISTRY OF ECONOMY
1.4.2. Exchange rate fluctuations
In 2011 the US dollar weakened considerably in comparison with other main currencies. The American
currency, which was regarded as a symbol of stability for years, lost a significant degree of investors’
trust in 2011, who due to the fears of another recession in the US started to seek more secure means of
investing their capital, e.g. investments in Japanese yen or gold. As a result the Japanese yen
strengthened against the dollar by 10% in 2011. Two other Asian currencies, i.e. the Chinese yuan and
the Korean won were also appreciated (by 4.7 and 4.3%, respectively), as well as the Brazilian real (by
5.4%). At the same time the exchange rate of euro to dollar increased by 5%.
Furthermore, uncertain situation on the global markets, including turbulences in the euro area, caused a
significant appreciation of the Swiss currency, which the investors came to regard as a safe currency to
invest in. In 2011 the Swiss franc strengthened in nominal terms by 17% against dollar. The strong
positions of the Swiss franc had a negative impact on the Swiss economy, which induced the National
Bank of Switzerland to intervene on the exchange markets in order to decrease its value.
The change in the value of the above mentioned currencies in real terms was completely different from
the change in their value in nominal terms (nominal exchange rate deflated by price changes). In case
of the US dollar the deflation in real terms (by 4.9%) was greater than deflation in nominal terms, which
points to a possible increase in price competitiveness of American goods with regard to foreign goods
due to their lower prices. On the other hand, the mid-annual nominal appreciations of other currencies
were significantly inflated in comparison to their real appreciations. In real terms, the Japanese yen was
appreciated by only 1.7%, and the Chinese yuan by 2.7%. The appreciation of the exchange rate of
euro was also relatively small – by 1.8%. This means that the higher value of these currencies observed
in 2011 was in fact less detrimental to the competitiveness of the respective national products on the
global market. Against the background of these currencies, the exchange rate of Brazilian real improved
relatively significantly in real terms (by 4.7%).
1.4.3. Changes in the trade in goods in the main regions
In 2011 the value of the World exports (expressed in dollars) increased by 19% and amounted to USD
18.2 trillion, while the volume of global exports of goods increased by 5%. The value of imports
increased by 19%, reaching the value of almost USD 18.4 trillion, with the volume of imports increasing
by 4.9%. The faster growth rate of trade in terms of value rather than in terms of volume was mainly the
consequence of the increase in global prices of goods.
The share of individual regions in global trade in goods did not change significantly. The greatest part of
global exports can be attributed to Europe, whose share amounted to 37% in 2011, while the value of
exports from this region amounted to USD 6.6 trillion (i.e. it increased by more than 17% in comparison
with the previous year). At the same time the value of European imports of goods amounted to USD
6.85 trillion, which means that it has grown by 17% in comparison with the year 2010 – this amount
corresponded to 38% of the global imports.
The exports from the European Union increased at a similar rate as the exports from the entire Europe
(reaching the value of approx. USD 6 trillion) and as the exports of the German economy, which plays
the leading role in this region (reaching the value of almost USD 1.5 trillion). The value imports to
Germany increased at a rate faster by 2 percentage points, reaching almost USD 1.3 trillion. Among the
main EU economies a slower than average rate of increase in exports was observed in France (by 14%,
34
reaching the level of almost USD 600 billion) and in the Netherlands (by 15%, reaching the level of USD
660 billion).
The value of exports of goods from the Northern American countries increased by 16% (reaching nearly
USD 2.3 trillion), which corresponded to 13% of global exports. The value of imports to this region
reached the level of USD 3.1 trillion (i.e. it increased by 15% in comparison with the previous year), and
their its share in global imports amounted to 17%. Trade in the United States, which hold a dominating
position in this part of the World, has grown at a similar rate as trade in the entire region, reaching the
level of almost USD 1.5 trillion in exports and nearly USD 2.3 trillion in imports.
Similarly to 2010, the growth rate of trade in developing countries increased in 2011. In this group the
countries belonging to the Commonwealth of Independent States had the highest trade dynamics – the
value of their exports increased by 34% (reaching the level of almost USD 790 billion), while the value of
their imports increased by 30% (reaching the level of USD 540 billion). In 2011 CIS markets accounted
for 4% of global exports and 3% of global imports. In Russia – the largest economy of this region –
exports increased by 30%, i.e. slower than for the entire group, reaching the level of USD 520 billion.
Russian imports increased at a similar rate (reaching approx. USD 320 billion).
Commodity trade of the Asian countries increased in 2011 by 18% on the exports side (amounting to
over USD 5.5 trillion) and by 23% on the imports side (reaching almost USD 5.6 trillion). Asia is the
region with the second largest share in global trade (after Europe) – in 2011 it amounted to 31% in both
global exports and imports. The trade of China, which is not only the dominant economy in terms of
trade in this region, but also the World's largest exporter of goods and the World's second largest
importer of goods, increased at a faster rate than the average for this region. Chinese exports increased
to USD 1.9 trillion (by 20%), while imports to more than USD 1.7 trillion (by 25%). The increase in trade
observed in India was even more dynamic – Indian exports increased by 35% (to nearly USD 300
billion), while Indian imports increased by 29% (to USD 450 billion). At the same time the highest
developed economy of this part of the World – Japan – experienced a significant slowdown in the
growth in exports (to 7%), amounting to more than USD 820 billion, while the imports increased by 23%
(to approx. USD 850 billion).
The trade of the countries of South and Central America increased at a faster than average rate – by
27% in exports (to USD 750 billion) and by 24% in imports (to almost USD 730 billion). This region’s
share in global exports and imports in 2011 amounted to 4%. The trade of the largest economy of this
region – Brazil – increased at the same rate, amounting to approx. USD 260 billion in exports and
approx. USD 240 billion in imports in 2011.
As already mentioned, China was the World leader in the exports of goods in 2011 (with the share of
10.4%), holding this title for the third year in a row. Following places in terms of shares in global exports
of goods are held – similarly as in the previous year – by the United States and Germany, though the
value of their exports was very similar (the US – USD 1.48 trillion, Germany – USD 1.47 trillion), while
the share in global exports of each of these countries amounted to 8.1%. Despite significantly slower
than average (by 13 pp) rate of increase in Japanese exports, Japanese economy retained the fourth
place among markets dominating in terms of global exports (with a share of 4.5% as compared to 5.1%
in the previous year). It should be noted that significance of Russia in the context of global exports has
increased – it was classified on the 9th place (with 2.9% share in exports), while in 2010 it was the
World’s 12th largest exporter (2.6%).
35
MINISTRY OF ECONOMY
On the other hand, the United States were the World's largest global importer in 2011, with a share in
global imports of goods amounting to 12.3% (nearly USD 2.3 trillion), while the subsequent places – as
in the previous year – were held by China (9.5%) and Germany (6.8%).
The share of Poland in global trade in goods in 2011 amounted to 1% of exports (USD 187 billion) and
1.1% of imports (USD 208 billion), which corresponded to the 27th place on the list of global exporters
and 24th place on the list of global importers.
Table 10 International trade in goods in 2011
Exports
Imports
Value
Share
Value
Pos.
Country
Pos.
Country
(USD billion)
(in %)
(USD billion)
1.
China
1,899
10.4
1.
USA
2,265
2.
USA
1,481
8.1
2.
China
1,743
3.
Germany
1,474
8.1
3.
Germany
1,254
4.
Japan
823
4.5
4.
Japan
854
5.
Netherlands
660
3.6
5.
France
715
6.
France
597
3.3
6.
United Kingdom
636
7.
Republic of Korea
555
3.0
7.
Netherlands
597
8.
Italy
523
2.9
8.
Italy
557
9.
Russia
522
2.9
9.
Republic of Korea
524
10.
Belgium
476
2.6
10.
Hong Kong
511
11.
United Kingdom
473
2.6
11.
Canada
462
12.
Hong Kong
456
2.5
12.
Belgium
461
13.
Canada
452
2.5
13.
India
451
14.
Singapore
410
2.2
14.
Singapore
366
15.
Saudi Arabia
365
2.0
15.
Spain
362
16.
Mexico
350
1.9
16.
Mexico
361
17.
Taiwan
308
1.7
17.
Russia
323
18.
Spain
297
1.6
18.
Taiwan
281
19.
India
297
1.6
19.
Australia
244
20.
United Arab Emirates
285
1.6
20.
Turkey
241
27.
Poland
187
1.0
24.
Poland
208
World
18,215
100.0
World
18,380
Source: Strategy and Analyses Department, Ministry of Economy based on the WTO data from July 2012.
Share
(in %)
12.3
9.5
6.8
4.6
3.9
3.5
3.2
3.0
2.9
2.8
2.5
2.5
2.5
2.0
2.0
2.0
1.8
1.5
1.3
1.3
1.1
100.0
The value of global trade in services in 2011 increased nearly twice slower than the value of commodity
trade. Global exports of services increased by 11%, amounting to more than USD 4.1 trillion. WTO
estimates that the share of services in global trade in goods and services amounted to 18.6% in 2011.
In 2011 the exports of tourist services increased at a fastest rate (by 12%) – the share of this type of
services amounts to more than 25% of the global exports in services (i.e. nearly USD 1.1 trillion). On the
other hand, transport services, whose share in total exports of services amounts to more than 20% (i.e.
USD 855 billion) experienced the slowest rate of growth (of 8%).
Similarly to trade in goods, the greatest share in global trade in services can be attributed to the
European countries – 47% in exports (nearly USD 2 trillion) and 42% in imports (USD 1.6 trillion) – and
Asia – 26% of the global exports (USD 1.1 trillion) and 28% in imports (nearly USD 1.1 trillion).
In terms of individual economies, the United States remain the leading exporter of services, with a share
of 13.9% (nearly USD 580 billion). The following places are held by the United Kingdom (6.6%, over
USD 270 billion) and Germany (6.1%, over USD 250 billion). The dominating position in global imports
of services in 2011 was held by the United States (10.1%, approx. USD 390 billion), Germany (7.3%,
over USD 280 billion) and China (6.1%, nearly USD 240 billion).
36
In 2011 Poland was classified on the 30th position on the list of global exporters of services (with a share
of 0.9%, i.e. USD 37 billion) and on the 32nd place on the list of global importers of services (0.75%,
nearly USD 30 billion).
1.5. Prospects of World trade development in 2012
According to the estimates of the majority of international and national research centres, a slowdown in
the global economy that has been observed since the 2nd half of 2011 will continue in 2012. The global
crisis in 2008 and 2009 revealed that the international trade is highly vulnerable to economic downturn
which results from strong supply and cooperation relations in production processes. The system of such
relations makes the components and goods used for production cross the borders many times, which at
the same time extends the scale of international trade. As a result, the fluctuations of global trade are
larger than the GDP fluctuations.
According to the WTO, in 2010, i.e. in the period of post-crisis economic recovery, the global GDP
increased by 3.8% while the volume of international trade grew by 13.8%. In 2011, the global economic
growth rate declined to 2.4%, which resulted in the international trade growth rate decreasing to 5%, i.e.
almost 2.8 times slower than in the previous year.
According to WTO estimates, economic growth rate may be expected to slow down further in 2012 (to
2.1%) and the growth of the global trade volume to decline (to 3.7%). Experts expect a faster growth of
trade volume in the developing countries, where the exports will increase by 5.6% and imports by 6.2%,
than in the developed countries where a growth of 2% and 1.9% is expected for exports and imports,
respectively.
Table 11 Trade in goods and GDP growth rate in 2008-2013 (as compared to the previous year, %)
World
Exports
Developed countries
Imports
Developed countries
2008
2009
2010
Commodities trade turnover volume
2.3
-12.0
13.8
2011
2012*
2013*
5.0
3.7
5.6
0.9
4.2
-15.1
-7.5
13.0
14.9
4.7
5.4
2.0
5.6
4.1
7.2
-1.1
8.6
-14.4
-10.5
10.9
18.1
2.8
7.9
1.9
6.2
3.9
7.8
GDP
World
1.3
-2.6
3.8
2.4
2.1
Developed countries
0.0
-4.0
2.8
1.5
1.1
5.6
2.2
7.2
5.7
5.0
* forecast
Source: Strategy and Analyses Department, Ministry of Economy based on WTO data from April 2012.
2.7
1.8
5.4
Threats identified by the analysts as those which may have an adverse impact on the global economic
situation include mainly debt problems in the euro area, affected mainly by the uncertainty related to the
implementation of austerity plan in Greece. A mild recession is forecast in the European Union, in
particular in the euro area. The GDP in the euro area is to fall by 0.3% according to IMF and by 0.1%
according to OECD, which will transform into a decline in demand for imports on those markets and may
have an adverse impact on developing economies for which the EU is an important trade partner.
An additional risk for the global economic situation stems from uncertainty concerning the rising global
prices, in particular prices of raw materials, but the impact of this factor may be analysed in two aspects.
37
MINISTRY OF ECONOMY
On the one hand, high prices are strongly correlated with a lower growth rate in the economies
importing raw materials, but on the other hand they result in a significant increase in exports revenues
for raw material producers, the overwhelming majority of which are the developing and less developed
countries.
According to OECD estimates, the volume of global trade grew by 6% in 2011, following its dynamic
recovery in 2010 (12.8%), whereas the global GDP growth rate declined at that time from 5.1% to 3.6%.
Experts forecast further slowdown of the growth of the World GDP to 3.4% and the international trade to
4.1%.
Projections by main analytic centres are more positive for Poland than for highly developed economies.
According to OECD, the volume of Polish exports will increase by 5.8% in 2012, compared to the
expected growth of 3.7% in France, 2.3% in Italy or 1.9% in the UK. It is worth noting that growth
forecast for Germany, which absorb 25% of Polish exports as the main Polish trade partner, is relatively
good (4.4% for exports and 4.7% for imports).
Table 12 Trade volume in goods and services growth rate in the years 2011-2013 (as compared to the
previous year, %)
2011
Exports
Imports
8.4
7.5
5.0
4.7
6.3
1.0
4.6
1.2
3.8
3.5
7.7
5.9
6.7
4.9
0.0
5.8
0.4
20.3
8.8
9.7
16.5
25.1
2012*
Exports
Imports
4.4
4.7
3.7
1.3
2.3
-2.0
1.9
1.5
5.4
4.7
5.8
4.7
4.9
3.9
2.3
3.8
2.0
15.0
5.8
6.7
8.4
10.8
2013*
Exports
Imports
6.2
6.7
6.3
4.7
4.4
2.4
5.3
2.3
5.4
5.0
6.2
5.7
6.7
6.2
6.5
4.9
2.9
12.8
10.6
11.5
10.4
10.8
Germany
France
Italy
United Kingdom
Netherlands
Poland
USA
Japan
Russia
China
India
* forecast
1.6. Public finances in a global approach
The global economic crisis of 2008-2009 posed a number of serious challenges for macroeconomic
policy, including fiscal policy. The deteriorating financial situation in the main economies of the World
forced the governments of certain countries to introduce fiscal stimuli. There are two main types of this
instrument, i.e. automatic fiscal stabilizers and intervention packages. The first type of impact the fiscal
policy may have on the real economy is related to an automatic reaction of revenues and expenditures
on fluctuations of the economic cycle. During recession, state revenues decline while the spending
rises, including the social ones. Intervention measures, including anti-crisis packages, have a similar
result, that is they increase country’s spending, e.g. investments or social spending, and, by lowering
tax rates to stimulate the demand, reduce the budget revenues. The phenomena described above may
negatively affect the condition of public finance, initially by influencing the budget deficit and eventually
the public debt.
38
Table 13 General government balance in EU, USA and Japan in the years 2007-2013
Country / group
of countries
group*
Excessive deficit
procedure
status**
terms
General government balance as % GDP
2007
2008
2009
2010
2011
2012^
Austria
EA
EDP
2013
-0.9
-0.9
-4.1
-4.5
-2.6
-3.0
Belgium
EA
EDP
2012
-0.2
-1.3
-5.6
-3.8
-3.7
-3.0
Bulgaria
D
0.1
1.7
-4.3
-3.1
-2.1
-1.9
Cyprus
EA
EDP
2012
3.4
0.9
-6.1
-5.3
-6.3
-3.4
Czech Republic
D
EDP
2013
-0.7
-2.7
-5.8
-4.8
-3.1
-2.9
Denmark
ERM II / O
EDP
2013
4.8
3.2
-2.7
-2.5
-1.8
-4.1
Estonia
EA
2.6
-2.8
-2.0
0.2
1.0
-2.4
Finland
EA
5.2
4.2
-2.5
-2.5
-0.5
-0.7
France
EA
EDP
2013
-2.7
-3.3
-7.5
-7.1
-5.2
-4.5
Greece
EA
EDP
2014
-5.1
-9.8 -15.6 -10.3
-9.1
-7.3
Spain
EA
EDP
2013
1.9
-4.2 -11.2
-9.3
-8.5
-6.4
Netherlands
EA
EDP
2013
0.2
0.6
-5.6
-5.1
-4.7
-4.4
Ireland
EA
EDP
2015
0.1
-7.3 -14.0 -31.2 -13.1
-8.3
Lithuania
ERM II / D
EDP
2012
-1.0
-3.3
-9.4
-7.2
-5.5
-3.2
Luxemburg
EA
3.6
3.0
-0.8
-0.9
-0.6
-1.8
Latvia
ERM II / D
EDP
2012
-0.3
-4.2
-9.8
-8.2
-3.5
-2.1
Malta
EA
EDP
2011
-2.2
-4.5
-3.8
-3.7
-2.7
-2.6
Germany
EA
EDP
0.2
0.1
-3.2
-4.3
-1.0
-0.4
Poland
D
EDP
2012
-1.9
-3.7
-7.4
-7.8
-5.1
-3.0
Portugal
EA
EDP
2013
-2.6
-3.5 -10.2
-9.8
-4.2
-4.7
Romania
D
EDP
2012
-2.5
-5.7
-9.0
-6.8
-5.2
-2.8
Slovakia
EA
EDP
2013
-1.9
-2.1
-8.0
-7.7
-4.8
-4.7
Slovenia
EA
EDP
2013
0.0
-1.8
-6.1
-6.0
-6.4
-4.3
Sweden
D
3.8
2.2
-0.7
0.3
0.3
-0.3
Hungary
D
EDP
2011
-5.0
-3.7
-4.6
-4.2
4.3
-2.5
UK
O
EDP
2014/15
-2.8
-5.0 -11.5 -10.2
-8.3
-6.7
Italy
EA
EDP
2012
-1.5
-2.7
-5.4
-4.6
-3.9
-2.0
Eurozone
n/a
n/a
n/a
-0.7
-2.0
-6.4
-6.2
-4.1
-3.2
EU 27
n/a
n/a
n/a
-0.9
-2.4
-6.9
-6.5
-4.5
-3.6
Japan
n/a
n/a
n/a
-2.4
-2.2
-8.8
-8.4
-9.5
-8.2
USA
n/a
n/a
n/a
-2.8
-6.3 -11.6 -10.7
-9.7
-9.9
Legenda: *EA - euro area
*ERM II - ERM II participant
*D – country with a derogation
*O - country with a opt-out clause
**EDP - Ecofin recommendation on the term of excessive deficit reduction
^- European Commission forecast, Economic Forecast - Spring 2012, data for USA and Japan – OECD.
Source: Strategy and Analyses Department, Ministry of Economy based on Eurostat and OECD data.
2013^
-1.9
-3.3
-1.7
-2.5
-2.6
-2.0
-1.3
-0.4
-4.2
-8.4
-6.3
-4.6
-7.5
-3.0
-2.2
-2.1
-2.9
-0.3
-2.5
-3.1
-2.2
-4.9
-3.8
0.1
-2.9
-6.5
-1.1
-2.9
-3.3
-8.0
-10.1
As revealed by the analysis conducted by the European Commission, the main factor which determined
a substantial growth of deficit in EU economy was the financial crisis. In fact, as the analyses suggest
the crisis accounts for 50% of deterioration of public finances. Discretional, interventional fiscal policy
applied by the governments, on the other hand, accounts for the negative economic situation in almost
25%. Fiscal deficits cumulate into public debt which, when accompanied by unfavourable economic
situation, leads to its permanent growth.
39
MINISTRY OF ECONOMY
Chart 1 General government balance in EU, euro area, USA and Japan the years 2007-2013, in % of GDP
%
2007
2008
2009
2010
2011
2012
2013
-12
Eurozone (16)
Japan
-8.0
-10.1
-8.2
-9.5
-9.7
EU 27
-9.9
-8.4
-8.8
-11.6
-10
-2.9
-3.3
-4.1
-4.5
-6.2
-6.5
-6.4
-6.9
-6.6
-8
-3.2
-3.6
-2.1
-2.4
-1.9
-6
-10.7
-4
-2.1
-2.9
-2
-0.7
-0.9
0
USA
Source: Strategy and Analyses Department of the Ministry of Economy on the basis of Eurostat and OECD.
The growth of debt-to-GDP ratio in EU-27 in 2009 by 12.3 pp has been the highest annual increase ever
in the EU economy. The debt grew further in the next two years (2010-2011). As a result, at the end of
2012 the debt in EU-27 will probably rise to 86.2% of GDP from 59.0% in 2007.
The recent economic crisis contributed to a significant imbalance in the global public finance.
Intervention measures taken by the governments of the USA, Japan and the EU economies played a
major role in this regard. However, it should be noted that the crisis itself was not the source of the scale
of current problems. The extent of implemented fiscal packages corresponded neither to the realities of
modern World economy nor to the condition of the global public finance sector in the period immediately
before the crisis. To justify this view, the key problem, i.e. periodical fiscal restrictions, must be
mentioned. The majority of developed countries were burdened by excessive deficits and public debts
already at the beginning of the recession, i.e. after the period of prosperity in the early first decade of
the 21st century. The awareness of a tight fiscal situation and the anticipation of its further deterioration
can make the undertaken intervention measures unsuccessful in the accomplishment of the expected
goals.1
When the periodical fiscal restrictions were revealed, a need for a quick fiscal adjustment arose in many
economies. In practice it translates into a necessity to convert from the anticyclical fiscal policy to a
procyclical policy, i.e. to its restriction. In the current situation, with the global crisis not yet fully
alleviated, it may lead to new threats for the future economic growth. On the other hand, in the longterm perspective, the lack of fiscal consolidation will make it impossible to return to fast economic
growth due to e.g. tensions on the debt market.
The situation of the majority of developing countries, including Poland, is slightly better due to the lower
initial level of debt-to-GDP ratio and the higher expected rate of economic growth. This does not mean
that the group has not suffered from a significant deterioration of fiscal indicators when compared to the
situation before the crisis.
Reference is made here to Ricardian equivalence, i.e. the increase in savings in anticipation of increased fiscal burdens in
the future, which could neutralise the effects of fiscal stimulus and the anticipated Keynesian effects.
1
40
Some of the World economies have fallen into the debt trap. The condition of global public finances will
determine the global economic growth in the long term, with its effects being visible in a medium and
long-term period.
Table 14 General government debt in EU, USA and Japan in the years 2007-2013
Country / group of
General government debt as % GDP
2007
2008
2009
2010*
2011
2012*
countries
Austria
60.2
63.8
69.5
71.9
72.2
74.2
Belgium
84.1
89.3
95.8
96.0
98.0
100.5
Bulgaria
17.2
13.7
14.6
16.3
16.3
17.6
Cyprus
58.8
48.9
58.5
61.5
71.6
76.5
Czech Republic
27.9
28.7
34.4
38.1
41.2
43.9
Denmark
27.1
33.4
40.6
42.9
46.5
40.9
Estonia
3.7
4.5
7.2
6.7
6.0
10.4
Finland
35.2
33.9
43.5
48.4
48.6
50.5
France
64.2
68.2
79.2
82.3
85.8
90.5
Greece
107.4
113.0
129.4
145.0
165.3
160.6
Spain
36.3
40.2
53.9
61.2
68.5
80.9
Ireland
45.3
58.5
60.8
62.9
65.2
70.1
Lithuania
24.8
44.2
65.1
92.5
108.2
116.1
Luxemburg
16.8
15.5
29.4
38.0
38.5
40.4
Latvia
6.7
13.7
14.8
19.1
18.2
20.3
Malta
9.0
19.8
36.7
44.7
42.6
43.5
Netherlands
62.3
62.3
68.1
69.4
72.0
74.8
Germany
65.2
66.7
74.4
83.0
81.2
82.2
Poland
45.0
47.1
50.9
54.8
56.3
55.0
Portugal
68.3
71.6
83.1
93.3
107.8
113.9
Romania
12.8
13.4
23.6
30.5
33.3
34.6
Slovakia
29.6
27.9
35.6
41.1
43.3
49.7
Slovenia
23.1
21.9
35.3
38.8
47.6
54.7
Sweden
40.2
38.8
42.6
39.4
38.4
35.6
Hungary
67.1
73.0
79.8
81.4
80.6
78.5
UK
44.4
54.8
69.6
79.6
85.7
91.2
Italy
103.1
105.7
116.0
118.6
120.1
123.5
Eurozone
66.4
70.2
80.0
85.4
87.4
91.8
EU 27
59.0
62.5
74.8
80.0
82.5
86.2
Japan
183.0
191.8
210.2
215.3
229.9
234.5
USA
67.2
76.1
89.9
98.4
102.8
106.7
* - European Commission forecast, Economic Forecast - Spring 2012, data for USA and Japan – IMF.
Source: Strategy and Analyses Department, Ministry of Economy based on OECD and IMF data.
41
2013*
74.3
100.8
18.5
78.1
44.9
42.1
11.7
51.7
92.5
168.0
87.0
73.0
120.2
40.9
21.6
44.7
75.2
80.7
53.7
117.1
34.6
53.5
58.1
34.2
78.0
94.6
121.8
92.6
87.2
240.0
110.7
MINISTRY OF ECONOMY
240.0
234.5
215.3
210.2
191.8
183.0
%
240
229.9
Chart 2 General government debt in EU, USA and Japan in the years 2007-2013
110.7
92.6
87.2
106.7
91.8
86.2
102.8
87.4
82.5
98.4
85.4
80.0
89.9
80.0
74.8
76.1
70.2
62.5
67.2
80
66.4
59.0
160
0
2007
2008
Eurozone (16)
2009
2010
EU 27
2011
Japan
2012
2013
USA
Source: Strategy and Analyses Department, Ministry of Economy based on OECD and IMF data.
42
2. POLAND IN THE EUROPEAN UNION
2.1. Poland and the European Union2
Negative trends, first observed in global economy in 2008, which were caused by the collapse of the US
market of financial instruments, maintained their negative effect on the EU economy also in the
subsequent years. After a period of global recession culminating in 2009, the EU economy had to face
other problems in 2010 and 2011. The problems with balancing public finances in certain euro area
countries (the so-called PIIGS3) proved to be the most severe, posing the greatest threat for stability of
the economic growth.
From among the five euro area countries, whose problems with fast increasing public debt posed a risk
for the stability of the entire EU economy in 2011, the situation was the worst in Greece. Due to the lack
of possibility to restore fiscal balance using its own resources, the size of the Greek economy and the
complexity of its debt, the problems experienced by Greece became an indirect source of risk for
economic growth sustainability on a global scale. The real threat of losing financial liquidity by Greece
required the support to be granted for its economy from external aid funds, guaranteed jointly by IMF,
EU and ECB in return for budget cuts. In addition, creditors of Greece agreed to redeem a part of its
foreign debt (approx. EUR 100 billion).
The deterioration of the credit rating of numerous economies on a global scale was a result of the debt
problem in the euro area and a factor contributing to uncertainty regarding the future economic situation
in the EU in 2011 and at the beginning of 2012. However, despite the lower prospect of rating of longterm US bonds, the resolution of the problem of Greece had a marked positive impact on the markets,
giving hope for stabilisation of the economic situation in the European Union.
Strained fiscal situation in Italy and Spain is still the main source of risk. If the public finance imbalance
in those two countries increases, its extent and importance for the entire EU may be the main
determinant of the direction and growth rate of the GDP in 2012.
2.1.1.
Gross Domestic Product
Despite the fiscal problems in the euro area that hindered the economic activity of Germany – the main
trade partner of Poland, in 2011 the Polish economy continued to grow, generating one of the highest
GDP growth rates in the entire European Union. With the GDP growth rate for the entire EU estimated
at 1.5%, Poland achieved the result that was 2.8 percentage points better with an annual growth rate of
4.3%. It should be stressed that the result was also higher than originally predicted by the European
Commission, which had estimated the GDP growth for Poland in 2011 at 4.0% (Economic forecast –
Autumn 2011).
Source of data: Eurostat.
An abbreviation for a group of euro area countries facing the problem of high public debt, which comprises Portugal,
Ireland, Italy, Greece and Spain.
2
3
43
MINISTRY OF ECONOMY
Such a good performance of the Polish economy, with a positive reference base, was primarily the
effect of constantly growing domestic demand. Owing to the increasing household expenditures
(individual consumption) and the growing investment activity of enterprises (gross fixed capital
formation), this factor was the main driver of economic growth in the country. External demand also had
a positive impact on a growth of added value in the economy, with its contribution to the GDP growth in
2011 amounting to 0.7 percentage points. This was caused by the fact that the growth rate of exports
exceeded that of imports.
8
0.4
0.5
0.7
0.7
0.7
1.0
1.2
1.5
1.6
1.6
1.7
1.7
1.7
1.9
2.1
2.5
2.9
3.0
3.0
3.3
3.9
4.3
5.5
5.9
%
7.6
Chart 3 2011 EU GDP growth (y/y) in %
6
4
2
-1.6
-0.2
0
-2
-4
-10
Greece
Portugal
Slovenia
Italy
Cyprus
Ireland
Spain
UK
Denmark
Netherlands
EU 27
Hungary
Luxemburg
Bulgaria
France
Czech Republic
Belgium
Malta
Romania
Finland
Austria
Germany
Slovakia
Sweden
Poland
Latvia
Lithuania
Estonia
-8
-6.9
-6
Source: Eurostat.
2.1.2.
Industry
In 2011, the situation of the European Union industry sector improved. A slight improvement in the
economy, both outside and inside the common market, contributed to a gradual recovery of demand for
industrial production of the EU economies. As a result, industrial output in the European Union
increased by 3.2% in 2011. Estonia, Latvia and Lithuania, which experienced a very deep recession in
2009, recovered in 2010 and 2011 and dynamically rebuilt the potential of their industry sectors.
Chart 4 2011 EU industrial output (y/y) in %
20
16.5
%
0.0
0.1
1.3
1.9
2.2
2.4
2.7
3.2
4.2
5.4
5.7
5.8
6.0
6.4
7.1
7.2
7.3
7.6
7.6
8.8
15
10
5
-15
Grecja
Cyprus
Luxemburg
Portugal
Spain
UK
Netherlands
Ireland
Italy
Finland
Denmark
Malta
France
Slovenia
EU 27
Belgium
Hungary
Sweden
Bulgaria
Romania
Czech Republic
Slovakia
Poland
Austria
Germany
Lithuania
Latvia
Estonia
-10
-8.8
-7.8
-5
-2.0
-1.4
-1.1
-0.8
-2.4
0
Source: Eurostat
44
The rise in industrial output in Poland in 2011 exceeded the average EU level. Owing to the improving
economic activity of Poland’s largest trade partners (mainly Germany), the Polish industrial sector in this
period was developing at the rate of 7.2% a year. It needs to be noted here that this result was achieved
with a relatively high basis from 2010. The 10.8% increase in annual industrial output recorded in
Poland at that time was one of the best results among the European Union Member States
2.1.3.
Construction industry
Very positive results of construction industry in the years before the crisis, resulting from the high
demand for properties, supported positive expectations for the development of the situation on the
market in future. This determined the transfers of capital from services and industrial sectors to the
construction sector. The situation changed diametrically in 2009, when the crisis in the US property
market led to a profound change in global property markets through several financial transmission
channels. As a result, investors were withdrawing from the planned projects and the projects already in
progress slowed down leading to a substantial deterioration in the performance of the construction
sector of the EU economies.
In 2011, problems in the construction sector increased. The reason behind the trends prevailing
throughout the EU was the low investment demand, resulting mainly from the stricter lending policy of
banks with respect to construction projects.
Despite the crisis on real estate markets in Spain, Greece or Ireland, after 3 years of recession in the
construction sector, in 2011 industrial output grew by 1.2% on average in the European Union. The
performance of the Polish construction sector was even better, as in 2011 it recorded a 15.8% increase
in industrial output, compared to a growth of 3.6% in the previous year. The performance of the sector
was largely determined by the implementation of investment projects postponed from 2010 due to
unfavourable atmospheric conditions, by relatively good weather conditions (mainly in 4Q11) and
intensification of public investment projects in relation to the 2012 European Football Championship.
30
0.0
1.2
2.1
2.2
2.6
3.0
4.7
5.6
6.2
7.5
9.9
12.5
13.3
15.8
%
22.3
26.7
Chart 5 2011 EU construction and assembly production (y/y) in %
20
0
-30
-40
Grecja
Slovenia
Spain
Ireland
Bulgaria
Portugal
Cyprus
Hungary
Czech Republic
Italy
Slovakia
Malta
Austria
EU 27
Luxemburg
France
UK
Romania
Netherlands
Belgium
Denmark
Sweden
Finland
Latvia
Germany
Poland
Lithuania
Estonia
-20
-27.9
-25.6
-18.4
-10
-17.1
-13.0
-10.2
-9.5
-7.7
-3.5
-2.9
-2.0
-0.5
10
Source: Eurostat
45
MINISTRY OF ECONOMY
2.1.4.
Labour market
In 2011, the unfavourable trends on the EU labour market continued, leading to a stabilisation of the
unemployment rate at the level of 9.7% (according to Eurostat methodology). In the same period,
employment grew by 0.3% yoy, following a decline of 0.5% in the previous year.
In 2011, the unemployment rate in Poland oscillated around the EU average of 9.7% (as compared to
9.6% in the preceding year). The employment rate increased by 1.0% in the analysed period. The
employment rate in the age group 15–64 (according to LFS) in Poland was lower than the EU average
(64.3%) and amounted to 59.7% throughout 2011. The performance of the labour market in Poland with
respect to the unemployment rate, which was slightly worse than a year before, was still determined by
the reduction in economic activity during the global crisis and directly afterwards. However, the expected
improvement of the economic situation is to stabilise the situation on the labour market, resulting in a
gradual improvement of its basic indices.
2.1.5.
Inflation
By stimulating aversion to risk, the global financial crisis significantly subdued the demand for money.
With the reduced consumption, it led to a slight increase (1.0%) in prices of goods and services in the
European Union throughout 2009. In 2010, this trend was reversed. Ascending capital inflow to the
developing economies (including Poland), growing consumption demand - followed by the global prices
of food and energy carriers were reflected in the growth of inflation (HICP) in the EU up to 2.1%.
In 2011, inflationary pressure was persisted in the entire EU, resulting in an average inflation rate
(HICP) of 3.1%. The highest pace of prices growth was noticed in Romania (5.8%), Estonia (5.1%) and
the UK (4.5%).
In Poland, the inflation index (HICP) increased by 3.9% in 2011, i.e. was by 1.2 percentage points
higher than in 2010. The price growth in 2011, compared to the preceding year, was determined mainly
be a relatively high volatility of prices of food and (energy) raw materials on international markets.
Internal factors, such as a growing consumption demand and wage pressure stemming from increasing
employment, were not able to undermine inflationary pressure. In the first months of 2012, the HICP
inflation index was gradually decreasing. In May, it amounted to 3.6% which was the lowest value since
September 2010.
2.2. EU economic governance
As a result of the global financial and economic crisis, the issue of financial imbalance became the
centre of the European discussion. The global financial crisis accelerated unavoidable problems related
to increasing imbalance inside the European economy (stemming also from errors in the economic
policy, unfortunate regulations or erroneous expectations of economic operators).
In order to counteract the threats, governments of individual countries initiated intervention measures to
restore stability in the financial sector. Stimulus packages were also launched. Public spending
increased as a result, leading to an increase in deficits and in borrowing needs due to lower budget
revenues caused by economic slowdown. Public debt of the economies plagued by the crisis has
increased significantly. Fiscal problems result also from the diversification of economies within the
European Union which were subject to asymmetric shocks after joining the monetary union.
46
The global economic and financial crisis also proved that the coordination of economic policies of EU
countries needs modification. In its communications published in 2010 containing the proposals to
increase the effectiveness of coordination of economic policies, the European Commission stressed the
need for reinforcing the Stability and Growth Pact – the EU framework for the coordination of national
fiscal policies. In September 2010, the European Commission published 6 draft legal acts concerning
the enhancement of economic governance. The package entered into force on 13 December 2011.
Box 1 Economic governance “six-pack”
− Regulation amending Council Regulation No 1466/97 (preventive arm of the Stability and Growth Pact),
− Regulation amending Council Regulation No 1467/97 (corrective arm of the Stability and Growth Pact),
− Regulation on the effective enforcement of budgetary surveillance in the euro area,
− Regulation on the prevention and correction of macroeconomic imbalances;
− Regulation on the on enforcement measures to correct excessive macroeconomic imbalances in the euro
area,
− Council Directive on requirements for budgetary frameworks of the Member States.
Those measures were formally included in the following regulations: Treaty on Stability, Coordination
and Governance in the Economic and Monetary Union, commonly referred to as the Fiscal Compact,
and, in detail, in the Regulations No 1174/2011 for the euro area countries and No 1176/2011 for the
entire EU. It is worth noting that the regulations have two aspects (two arms): preventive and corrective.
Therefore, they prevent the escalation of imbalances and support the restoration of balance.
The regulations of the European Parliament and of the Council constitute the preventive arm of the
Stability and Growth pact. Its aim is to ensure prudent fiscal policy of the Member States so as to
prevent risks to fiscal stability, which could negatively affect the Economic and Monetary Union as a
whole.
As part of the measures to eliminate the risk of economic problems in the EU in the future, the
Commission also proposed establishing a mechanism for monitoring, preventing and correcting
macroeconomic imbalances (which is similar to the existing EU system of the Member States’ public
finance supervision). The basis for the new mechanism is the annual report of the European
Commission with an analysis of indicators allowing to identify macroeconomic imbalances in the
Member States. The report is subject to debate and conclusions of the Ecofin Council, and then the
Commission presents a more detailed report for each country in which it identifies a risk for the
macroeconomic stability or the presence of macroeconomic imbalances. The Ecofin Council may issue
recommendations for a given Member State and the European Commission may initiate the Excessive
Imbalance Procedure. The Member State subject to this procedure would be obliged to submit a
recovery plan for consultation, and then regularly report on the progress in the execution of the plan.
In 2012, in-depth analyses were drawn up for 12 Member States (Belgium, Bulgaria, Cyprus, Denmark,
Finland, France, Italy, Hungary, Slovenia, Spain, Sweden and the United Kingdom) considered to be at
risk of macroeconomic imbalances. Each of the twelve detailed analyses covers the investigation of the
source, nature and scale of potential macroeconomic imbalances. It also identifies potential imbalances
and their nature in the given country. The analyses confirm that the above-mentioned economies are
facing macroeconomic imbalances which must be corrected and closely monitored. Based on these
analyses it can be also concluded that economic imbalances are in principle corrected, as evidenced by
the reduction in current account deficits, convergence of unit labour costs, reduction of credit flows or
adjustments of the prices of flats. However, in some cases it is not fully clear whether the changes are
complete and permanent and whether they are introduced at an adequate pace. In numerous cases, the
accumulated lack of internal and external balance is still a huge challenge, for example in the case of
debt in the private and public sector.
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MINISTRY OF ECONOMY
Box 2 Alert mechanism
On 15 March 2011, the Ecofin adopted general agreements on the Commission proposals to take regulatory
action to prevent and possibly correct the existing macroeconomic imbalances. This provided the basis for
launching tripartite talks with the European Parliament under the co-decision procedure.
The starting point for the Excessive Imbalance Procedure (EIP) will be the annual report of the European
Commission on the alert mechanism which will consist of a scoreboard with an economic evaluation of countries’
performance. Considering the results of the report and the debates within the Council and the Eurogroup, the
Commission will decide which Member States require in-depth analyses. Only in-depth analyses will constitute
the basis for issuing recommendations for the Member States or using the preventive or corrective arm.
To this end, the Lisbon Methodology Working Group was engaged which proposed a limited number of 8
indicators:
1st Current account balance as a percent of GDP,
2nd Net international investment position (NIIP) as a percent of GDP,
3. Real Effective Exchange rate (REER) based on the harmonised index of consumer prices deflator
(HICP),
4. Exports market share,
5. Unit labour costs,
6. Housing market: the House Price Index (HPI),
7. Private sector debt,
8. Private sector credit flow (transactions),
9. General government (public) sector debt.
The above indicators were selected based on the following four principles:
− The indicators should be oriented at macroeconomic imbalances and loss of competitiveness, with a
particular focus on the proper functioning of the euro area.
− The scoreboard (indicators and relevant thresholds) should provide reliable signals for potentially harmful
imbalances and competitiveness losses early on.
− The reaction to the results of the countries presented in the scoreboard should be taken into account; the
results should present real concerns where they actually exist so as not to cause false alarm situations.
− The indicators and data used for their calculation should be of high statistical quality.
As the debt crisis escalated, further reforms of economic governance were undertaken. The work was
initiated on the so-called two-pack (two regulations proposed by the European Commission in
November 2011) which further strengthens the surveillance over the fiscal policy of the euro area
countries and the surveillance over the economic and fiscal policy of those euro area countries which
experience or are at risk of economic instability.
− Proposal for a Regulation of the European Parliament and of the Council on the strengthening of
economic and budgetary surveillance of Member States experiencing or threatened with serious
difficulties with respect to their financial stability in the euro area
− Proposal for a Regulation of the European Parliament and of the Council on common provisions for
monitoring and assessing draft budgetary plans and ensuring the correction of excessive deficit of
the Member States in the euro area.
The European Council of 28–29 June 2012 adopted the Compact for Growth and Jobs containing
measures which the Member States and the EU must take in order to restore growth and investments
and to increase employment and European competitiveness. The Member States undertook to:
− remain fully committed to taking the immediate action required at national level to achieve the
objectives of the Europe 2020 Strategy, including the swift adoption of “two-pack”;
− pursue differentiated growth-friendly fiscal consolidation, respecting the Stability and Growth Pact
and taking into account country-specific circumstances;
− restore normal lending to the economy and urgently complete the restoring of the banking sector;
48
− promote growth and competitiveness, notably by addressing deep-rooted imbalances and going
further in structural reforms to unlock domestic potential for growth;
− tackle unemployment and address the social consequences of the crisis effectively.
Measures needed at the EU level include:
− Further efforts to reduce the overall regulatory burden at EU and national level;
− Fully completing the internal energy market by 2014;
− The need to boost the financing of the economy. EUR 120 billion (equivalent to around 1% of EU
GNI) will be mobilised for fast-acting growth measures;
− The European Union's budget must be a catalyst for growth and jobs across Europe, notably by
leveraging productive and human capital investments. Within the future Multiannual Financial
Framework, spending should be mobilised to support growth, employment, competitiveness and
convergence, in line with the Europe 2020 Strategy;
− Tax policy should contribute to fiscal consolidation and sustainable growth.
In June 2012, the report “Towards a Genuine Economic and Monetary Union” was also presented. The
report defines four basic elements of the future EMU:
− An integrated financial framework (banking union);
− An integrated budgetary framework;
− An integrated economic policy framework, and
− Ensuring the necessary democratic legitimacy and accountability.
Box 3 ‘Banking union’ initiative
The major elements of the proposal to create a “banking union” include:
− EU-wide bank rules – including common but flexible requirements on the amount of capital banks are
required to hold;
− a single EU banking supervisor with direct oversight of banks operating in multiple countries and of very
large banks – to enforce rules and oversee risk controls;
− common rules for preventing bank failures and for intervening when a bank gets in financial trouble – before
taxpayer-funded bailouts are needed;
− a single deposit guarantee scheme to protect depositors wherever they hold savings and investments in the
EU – reinforcing confidence in the banking system.
2.3. Europe 2020 strategy and the National Reform
Programme
The unexpected scale of the economic crisis, triggered in the 2nd half of 2008 by a severe crisis on the
global financial markets, not only revealed serious deficiencies of the financial market regulation, but
also confirmed the importance of structural reforms of the economy which ensure its long-term stability.
On the one hand, the reforms enable a fast and flexible response to the emerging imbalances, and, on
the other hand, they create favourable conditions for sustainable development while taking into
consideration challenges related to economic globalisation or demographic changes. The EU policy
should also address such challenges as differences in social and economic development of EU regions,
structural transformations on labour markets and the need to ensure energy security, at the same time
achieving the objectives of the economy efficiently using the environmental resources.
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MINISTRY OF ECONOMY
Box 4 European consensus on growth
The debate on economic growth during the Polish Presidency of the Council of the EU started with the
publication of a report by the Presidency “Towards a European consensus on growth” at the beginning of
October 2011. The report focuses on the need to develop intellectual capital, deepen the internal market and
develop infrastructure.
− Development of intellectual capital requires spending on human capital, increasing the structural capital
resources (i.e. infrastructure of domestic education and innovation systems, such as research and
development units and institutions protecting intellectual property) and enhancing social capital resources
(in the form of democratic, market and joint standards of conduct, confidence in public institutions, citizen
involvement and public participation, self-governing structures in various areas, participation of social
entities in formulating development mechanisms).
− As regards the deepening of the internal market, it is necessary to use the growth potential of small and
medium-size enterprises which is still unused. Appropriate conditions for free movement of knowledge
should also be created, while the market of electric energy and energy raw materials must be further
liberalized.
− A prerequisite for development of economic cooperation in Europe is also appropriate infrastructure.
Further development of the trans-European transport network combined with an efficient network of national
infrastructure is essential in this regard. Domestic and cross-border investments are necessary for
development of the European energy market. Investment which is of key importance for ensuring security of
supplies in emergency situations should also receive support. Other important tasks include the elimination
of digital exclusion and the use of opportunities offered by e-economy.
As an EU Member State, Poland actively participates in defining the objectives and shape of the EU
policy. The key issue is to create the economic governance structure which would not further deepen
the division between the euro area and non-euro area countries. Therefore, Poland participates in the
Euro Plus Pact and in the Europe 2020 strategy adopted by the European Union on 17 June 2010.
Due to the threats remaining as a result of the crisis on the global financial markets in the 2nd half of
2008, Poland, which held the Presidency of the Council of the EU in the 2nd half of 2011, aimed at
initiating an extensive debate on growth.
The crisis also exposed major weaknesses in the functioning of the institutional system of the European
economy, thus providing a strong impulse for measures aimed at its strengthening and restructuring.
The solutions found should cover all Member States to the largest extent possible rather than the euro
area countries only. To this end, Poland participates in the fiscal compact.
The main instruments for the Europe 2020 Strategy implementation at the level of Member States are
the National Reform Programmes. The National Reform Programme for Poland (NRP) to implement the
Europe 2020 Strategy was adopted by the Council of Ministers on 26 April 2011. The document presents
how Poland will respond to the challenges it is going to face in the coming years. The structure of the
NRP provides for correlation between Polish development goals and the priorities specified in the
Europe 2020 Strategy, namely:
− development of knowledge and innovation-based economy (smart growth);
− promotion of sustainable economy causing less burden for the environment, more resourceefficient and competitive (sustainable growth);
− strengthening of the economy characterised by high employment rate and economic, social
and territorial cohesion (inclusive growth).
50
Box 5 National Reform Programme – selected measures
The Polish NRP focuses on actions aimed at catching-up and building new competitive advantages in three
priority areas:
− Infrastructure for sustainable growth;
− Innovation for smart growth;
− Activity for inclusive growth.
The most important tasks implemented in 2011 within the area of Infrastructure for sustainable growth include
the entry into force of the Act on implementation of digital terrestrial television, on health care activity, amending
the act Atomic Law; the adoption of the National Spatial Development Framework Programme 2030 by the
Council of Ministers; implementation of the National Road Construction Programme for 2011–2015; the launch of
long-term railway infrastructure modernisation programme; RES promotion activities; support for investments
aimed at increasing energy efficiency, including under the Act on support for thermal modernisation and repairs.
The activities planned within the area of Innovation for smart growth include the entry into force of the Acts on
reducing administrative barriers for citizens and entrepreneurs (the so-called 1st deregulation Act), on reduction
of certain obligations of citizens and entrepreneurs (the so-called 2nd deregulation Act), amending the Act – Law
on higher education system and the Act on academic degrees and titles; the completion of technological
foresight of the industry InSight 2030 and the beginning of the implementation of its results; introduction of the
system of obligatory evaluations of the higher education quality along with the publication of full results
(rankings); elaboration of the National Research Programme.
The area of Activity for inclusive growth includes i.e. building a coherent system for supporting families and child
care by means of implementation of the Act on care of children up to 3 years of age and commencement of the
“Toddler”(“Maluch”) programme as well as the adoption of the Act on providing support for the families and
substitute parental care system; improvement of the labour market services and other forms of aid provided by
labour offices; implementation of the programme “Active forms of counteracting social exclusion”.
Poland declared in the NRP that by 2020 it will have achieved the following targets under the five
flagship initiatives of the Europe 2020 Strategy:
− employment rate of 71% among people aged 20–64;
− expenditure on R&D amounting to 1.7% of GDP;
− decrease of primary energy consumption to about 96 Mtoe;
− decrease of the percentage of early school leavers to 4.5% and increase to 45% in the
percentage of people with higher education degree in the age group of 30–34;
− reduction by 1.5 million of people at risk of poverty and/or economic deprivation and/or living in
households without any working members or of low labour intensity.
The coordination of economic policy within the EU and of the implementation of the Europe 2020
strategy has been taking place under the so-called European Semester, on three parallel but related
tracks, i.e. macroeconomic surveillance, thematic coordination and fiscal supervision. The first two
tracks concern the issues covered by the National Reform Programmes (NRP) and the Integrated
Guidelines for Growth and Jobs adopted by the council of the EU in 2010. The third track focuses on
subjects covered by the stability and convergence programmes drawn up under the Stability and Growth
Pact.
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MINISTRY OF ECONOMY
Chart 6 The European Semester Mechanism
December
EC publishes the
Annual Growth
Survey
January February March April May June July
European Council Spring
Summit– basing on the
Annual Growth Survey,
member states evidence
challenges facing EU and
form guidelines for the
European Council
Member states submit their
National Reforms
Programmes and Stability/
Convergence Programmes
(including the European
Council guidelines)
European Commission
evaluates NRP and S/CP
and presents project of
recommendations for MS;
discussion on these
recommendations among
Council of The European
Union bodies (ECOFIN and
EPSCO); political
acceptance by the European
Council
ECOFIN formally
accepts opinions
on the S/CP and
recommendations
for MS based on
NRP evaluation.
The Annual Growth Survey 2012 published by the European Commission on 23 November 2011
formally began the second cycle of the European Semester. In the AGS, the Commission suggested the
following five priorities:
− Pursuing differentiated growth-friendly fiscal consolidation;
− Restoring normal lending to the economy;
− Promoting growth and competitiveness for today and tomorrow;
− Tackling unemployment and the social consequences of the crisis;
− Modernising public administration.
The suggestions presented in the Annual Growth Survey comply with the common belief that without a
convincing response to the crisis in the euro area the economic outlook for the whole of the EU will
deteriorate rapidly. In order to overcome the crisis, determined fiscal consolidation must be continued,
with an increased efficiency of public finance. Although the impact of structural reforms focused on
enhancing economic growth is visible in the longer term, the reforms can have a positive short-term
effect, for example by improving confidence of entrepreneurs. Therefore, it is also the more important to
achieve a consensus on initiatives that may trigger a large potential for growth in the short term. These
initiatives include the unitary patent, implementation of the Services Directive, creation of a digital single
market or using the potential of the external dimension of the internal market.
In line with the schedule of the European Semester, on 25 April 2012 the Council of Ministers adopted a
document entitled National Reform Programme for implementation of the Europe 2020 Strategy.
2012/2013 Update. The 2012/2013 Update involves mainly a verification of the list of actions to be
implemented in the period 2012–2013. The verification of the list of actions built on the experience
gained in the first year of NRP implementation, including the progress in individual tasks’ delivery and
the decisions and political choices made throughout this period.
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Box 6 Council recommendations for the Polish economic policy
In the draft Council recommendations for Poland, presented by the European Commission following an
assessment of the NRP update and the Convergence Programme, the macroeconomic scenario outlined by
Poland was assessed as realistic and compliant with the Commission’s projections. However, despite the
progress made by Poland, there is still a need of further action to improve the situation on the labour market (in
particular to curb unemployment among the youth), increase the participation of women in the labour market and
improve the quality of education. The Commission also noted that Poland had adopted a pension scheme
reform, but stated that the pension scheme for such groups as farmers and miners must be changed. Other
measures that are important to enhance Poland's competitiveness include also measures to improve the
research environment, deregulation of professions, reduction of administrative burden and infrastructural
investments in the area of energy and railway transport.
Recommendations put special emphasis on the need of implementing the following actions in 2012–2013:
1. Ensure planned progress towards the correction of the excessive deficit. To this end, fully implement
the budget for the year 2012 and achieve the structural adjustment effort specified in the Council
recommendations under the EDP. Thereafter, specify the measures necessary to ensure
implementation of the budgetary strategy for the year 2013 and beyond as envisaged, ensuring an
adequate structural adjustment effort to make sufficient progress towards the MTO, including meeting
the expenditure benchmark. Minimise cuts in growth-enhancing expenditure in the future and improve
tax compliance.
2. Speed up the reform of the fiscal framework by enacting legislation with a view to introducing a
permanent expenditure rule by 2013. This rule should be consistent with the ESA. Take measures to
strengthen the mechanisms of coordination among the different levels of government in the mediumterm and annual budgetary processes.
3. To reduce youth unemployment, increase the availability of apprenticeships and work- based learning,
improve the quality of vocational training and adopt the proposed lifelong learning strategy. Better
match education outcomes with the needs of the labour market and improve the quality of teaching. To
combat labour market segmentation and in-work poverty, limit excessive use of civil law contracts and
extend the probationary period to permanent contracts.
4. Reinforce efforts to increase the labour market participation of women and raise enrolment rates of
children in both early childcare and pre-school education, by ensuring stable funding and investment in
public infrastructure, the provision of qualified staff, and affordable access. Tackle entrenched practices
of early retirement to increase exit ages from the labour market. Phase out the special pension scheme
for miners with a view to integrating them into the general scheme. Take more ambitious, permanent
steps to reform the KRUS to better reflect individual incomes.
5. Take additional measures to ensure an innovation-friendly business environment, by ensuring better
links between research, innovation and industry, and by establishing common priority areas and
instruments supporting the whole innovation cycle; improve access to finance for research and
innovation activities through guarantees and bridge financing.
6. Step up efforts to improve incentives for investment in energy generation capacity and energy efficiency
in the whole energy chain, speed up the development of the electricity grid, including cross-border
interconnections, eliminate obstacles in electricity cross border exchange, and strengthen competition
in the gas sector by phasing out regulated prices and by creating a gas trading platform. Strengthen the
role and resources of the railway market regulator and ensure effective and swift implementation of
railway investment projects. Reduce restrictions on professional services and simplify contract
enforcement and requirements for construction permits.
On 30 May 2012, the European Commission published the Communication on Action for Stability,
Growth and Jobs, accompanied by the proposal for Council’s country-specific recommendations on the
National Reform Programmes and Stability or Convergence Programmes presented by the Member
States in April 2012.
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MINISTRY OF ECONOMY
2.4. Internal market
2.4.1.
Free movement of goods and services
Free movement of goods in relation to the group of products considered high risk goods (such as
medicines, food, chemicals, toys, machines, medical devices, electrical devices, measuring instruments,
etc.) takes place based on harmonised legal requirements at the EU level (i.e. valid throughout the EU).
The requirements include technical regulations connected with such issues as security, design,
production process and placing on the market (the so-called harmonised legislation). Harmonisation of
provisions on the European level guarantees both free trade in industrial products on the EU market and
a high level of safety for consumers and users.
In sectors where harmonisation did not occur, trade is based on the mutual recognition principle:
products manufactured or placed on the market in compliance with the law in one EU Member State
can, as a rule, be placed on the market in another EU Member State even if they do not fully meet the
technical norms on e.g. shape, size, weight or composition in the other state. It means that EU
enterprises can, as a rule, pursue their activity in the entire Union if their products have been
manufactured and placed on the market in line with the regulations applicable in their country.
To facilitate free movement of goods in the non-harmonised area (e.g. products not covered by
detailed sectoral EU legislation – i.e. furniture, bicycles, paper products, small functional products, etc.),
a network of Product Contact Points was established in each EU Member State.
The Polish Product Contact Point is one of such Points operating pursuant to Regulation (EC) No
764/2008 of the European Parliament and of the Council of 9 July 2008 laying down procedures relating
to the application of certain national technical rules to products lawfully marketed in another Member
State. The purpose of the PCP is to help Polish and foreign natural persons pursuing economic activity,
companies and institutions obtain information on legal conditions of introducing products not covered by
harmonised legal requirements on the EU level and originating from other EU countries onto the Polish
market. The Point also provides contact details of institutions responsible for implementing technical
provisions for a given group of products and information on the application of the mutual recognition
principle.4
The number of inquiries with the PCP has been increasing on an annual basis from the time it was set
up (i.e. from 13 May 2009). In 2011, the PCP provided answers to 100 inquiries, which stands for nearly
a 40% increase as compared to 2010. The trend continues also in 2012 – 60 inquiries were already
made in the first half of the year. The majority of inquiries are made by Polish enterprises cooperating
with trade partners from other EU countries, particularly as concerns products originating from
neighbouring countries, e.g. the Czech Republic and Germany. In 2010, the percentage was 55%, while
in 2011 inquiries from Polish enterprises accounted for 68% of the total; in the 1st half of 2012 the figure
was 65%. The inquiries from foreign entities were also dominated by inquiries from the above countries.
They were sent inter alia from the United Kingdom, Belgium, France, Slovenia, Lithuania, Spain and
countries outside the EU (e.g. in 2010 from Japan and the US, and in 2011 from Israel). The inquiries
concerned mainly construction products (in 2010 almost 30% of inquiries concerned this subject; in
2011 it was close to 50%, while in the 1st half of 2012 nearly 60%) and consumer products (12% on
average).
The Product Contact Point receives and answers inquiries by e-mail ([email protected]). The Polish PCP is run by the
European Affairs Department of the Ministry of Economy in cooperation with experts from other ministries.
4
54
Good cooperation with other countries in the framework of the PCP network (particularly with
neighbouring countries and countries from the Baltic Sea region) and analysis of information on cases
handled by the PCP allows providing data on economic cooperation with European countries, including
the identification of possible barriers and threats in products’ access to the market.
Box 7 SOLVIT – network for out of court dispute resolution
SOLVIT is an on-line problem solving network in which EU Member States work together to solve without legal
proceedings problems caused by the misapplication of Internal Market law by public authorities. There is a
SOLVIT centre in every European Union Member State (as well as in Norway, Iceland and Liechtenstein) within
the structure of state administration. SOLVIT Centres can help with handling complaints from both citizens and
businesses, and assistance is free of charge.
The policy areas SOLVIT has mostly dealt with so far are:
− Recognition of professional qualifications,
− Residence permits,
− Social security,
− Driving licences,
− Motor vehicle registration,
− Border and road controls,
− Market access for products,
− Market access for services,
− Establishment as self-employed,
− Taxation,
− Free movement of capital or payments,
Also, SOLVIT deals with problems where there is misapplication of EU law in the area of the internal market
by administration bodies of another Member State with a cross-border element (e.g. a Polish citizen having a
problem with a French office).
The operation of the informal SOLVIT network is based mainly on swift actions. cases should be solved
within ten weeks from entering them into the database administrated by the European Commission.
Therefore, SOLVIT is an attractive instrument for solving problems related to the internal market as
compared to other procedures, such as court proceedings.
According to European Commission’s report on the network’s operations for 2011, Poland ranks high
among the countries that entered the most cases into the system (114 cases; alongside France,
Germany and the United Kingdom).5 Considered the total number of cases handled in 2011,6 Poland
ranked sixth.7 The solving ratio remains stable. In 2011 it was 89% (90% in 2010) for the entire network,
and for SOLVIT Poland Centre it was 83% (15 out of 18 closed cases were solved). It is also worth to
note the high ratio of solved cases against the administrations of other Member States entered into the
system by SOLVIT Poland Centre – it was 93%. In 2011, 67% of cases in the entire network were
closed within ten weeks. Yet, the average time of handling cases extended to 70 days (in 2010, it was
66 days). The SOLVIT Poland Centre improved its results by solving cases on average in 46 days.
5 Cases filed by Polish citizens and businesses against administrations of other Member States that met SOLVIT criteria and
were entered into the database. It should be emphasised that those were not all the cases handled by SOLVIT Poland
Centre in 2011. The total number of applications (that were analysed) was 420.
6 Cases filed against Poland and other Member States.
7 According to EC report on SOLVIT network results in 2011: “Making the Single Market deliver – annual governance checkup 2011.”
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MINISTRY OF ECONOMY
Cases filed to SOLVIT Poland Centre by Polish citizens and businesses concerned in particular
problems with Irish, UK, German, French, Italian and Spanish administration. The said cases concerned
primarily social security, residence permits and recognition of professional qualifications. The cases
against Polish administration handled by SOLVIT Poland Centre most frequently concerned mainly:
taxation, motor vehicle registration and social security.
Similar to previous years, in 2011 the percentage of cases related to the movement of goods and
services handled by SOLVIT Poland Centre was low. SOLVIT Poland Centre handled three such cases.
Two were filed against Polish administration by France and Denmark, and were closed as solved and
unsolved, respectively. One case concerned a complaint against Danish administration and was closed
as solved.
Box 8 Act on the provision of services in the territory of the Republic of Poland
The Act on the provision of services in the territory of the Republic of Poland introduces the following solutions
into the Polish law:
−
Definitions of a service, service provider and customer in compliance with the EU law and case law of
the Court of Justice that are key to the service sector. It also clearly defines the rules of performing
service-related activity;
− The legal basis for the operation of individual contact points that will ultimately allow, inter alia, to
complete all the necessary formalities and procedures related to setting up and pursuing economic
activity (not only in the services sector); and providing information on the procedures and formalities,
competent bodies, ways and conditions of accessing public registers and databases, publicly available
remedies in the case of a dispute between competent bodies and service provider or customer, or
between service providers;
− The provisions that regulate cooperation between bodies from Member States competent for setting up
and pursuing service activity;
− Simplifications of procedures concerning restrictions, i.e. the procedures of issuing concessions,
permits, entries into registers of regulated activity and other registers;
− Ensuring the freedom to render services in the territory of the Republic of Poland to service providers
from other Member States8 who temporarily provide cross-border services;
− Ban on discriminating customers by service providers, in particular on grounds of the state of origin or
place of residence;
− Service provider’s obligation to provide customers with specific information, e.g. about mandatory
guarantees or insurance, contact details, main features of a service.
The Act also introduced changes to 27 specific acts that consist inter alia in:
− Introduction of the possibility to establish multidisciplinary partnerships by legal counsels, attorneys,
patent attorneys and tax advisors;
− Removing the temporary permit for pursuing post activity from the Act – Post Law and replacing it with
a permit for an unspecified period of time;
− Easing certain forms of restrictions in the Act on plant protection by inter alia replacing ex ante control
with ex post control (replacing permits with entries into relevant registers for service providers who
perform service activities regulated by the act).
I.e. a European Union Member State, a member state of the European Free Trade Agreement (EFTA) – a party to the
European Economic Area agreement and countries that concluded agreements regulating the freedom to provide services
with the European Community and its Member States.
8
56
Generally, the European service sector has a high growth potential. In addition, liquidation of barriers in
this sector transfers into other sectors due to numerous mutual links. Directive 2006/123/EC of the
European Parliament and of the Council of 12 December 2006 on services in the internal market was
adopted on 12 December 2006. The Directive was transposed into the Polish legal system by way of
the Act of 4 March 2010 on the provision of services in the territory of the Republic of Poland (Dz. U.
[Journal of Laws] No 47, item 278) that introduces horizontal provisions and amends 27 specific acts.9
In-depth evaluation of implementing Directive 2006/123/EC on services in the internal market was
included in the Communication from the European Commission of 27 January 2011: Towards a better
functioning Single Market for services. On its basis, a number of measures were formulated aimed at
improving the functioning of the internal market in the area of services, of which the performance check
is the most important.
Box 9 Performance check
Performance check is a tool whose purpose is to evaluate the interactions between different pieces of EU
legislation and the Services Directive, and practical influence of these regulations on the operation of enterprises
on the Single Market. The check covered three sectors: construction sector, the tourism sector and the business
services sector. These were selected due to their possible growth in terms of cross-border trade.
A novel element of the check methodology was to adopt the perspective of an enterprise, including an evaluation
of how different EU regulations affect one enterprise, and cooperation between different bodies and institutions
whose competences were not always focused on internal market matters.
On 8 June 2012, the European Commission adopted the Communication on the implementation of the
Services Directive that includes an Action Plan for the internal market for 2012-2014. It should be
emphasised that full implementation of the Directive (including the PSC) was considered a priority and
the most urgent issue, including the use of the mechanism for applying to the Court of Justice if national
provisions are not in full compliance with the Directive.
In addition, the document entitled The economic impact of the Services Directive: A first assessment
following implementation was drafted. Unlike earlier analyses, it evaluates the Directive not only from
the EU point of view, but from the point of view of individual Member States as well. It evaluates
liquidation/reducing barriers on the internal market and how the actions affect the economy. Analysis
covered 13 types of service activities in 10 service sectors with the highest growth potential in crossborder provision of services (the analysis covers sectors that represent 20% of the EU’s GDP), including
small retail shops and large retail, construction, real estate (real estate brokers), tourism, legal services,
tax advisory services, accounting services, engineers, architects.
The sectors with the highest reduction of barriers in regulations are: travel agencies, hotel services and
construction. The sectors with the lowest reduction of barriers in regulations are: accounting services,
legal services and the services of architects. Legal services had the highest level of restrictions whose
degree has not been significantly reduced.
The analysis revealed that before the implementation the barriers on the internal market were not
homogeneous in particular sectors and countries. The trend continues after the implementation, but the
level and diversity of barriers have been considerably reduced.
The Act on the provision of services in the territory of the Republic of Poland was notified to the National Implementation
Measures Notification Database on 29 March 2010; the Act entered into force on 10 April 2010.
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MINISTRY OF ECONOMY
The European Commission highlighted two aspects of barrier reduction impact. The central scenario
takes into account the actual results of Member States, while the other one considers each country's
potential to reduce barriers. Generally speaking, the Directive’s implementation resulted in an increase
in trade (of 7.2%), higher FDIs (3.8%), higher productivity (4.7%) and consequently a higher GDP
(0.8%). The potential impact could have been higher if the Directive was implemented in a more
ambitious and fuller way (the increase in trade could be 10.1%, FDI 5.6%, productivity 7.0% and GDP
1.2%).
2.4.2.
Free movement of people
On 1 May 2011, Poles were granted the right of free movement and settlement in all European Union
Member States to work and study. In spite of liberalised access to Member State labour markets, in
practice recognition of diplomas and qualifications in foreign countries is the key condition that allows
free movement of employees and taking up employment abroad.
EU law specifies the way of recognising professional qualification obtained in European Union Member
States for the purpose of taking up employment in a Member State. The main act regulating the area is
Directive 2005/36/EC of the European Parliament and of the Council of 7 September 2005 on the
recognition of professional qualifications (OJ L 255, 30.9.2005, p. 22, as amended). The Directive
allows those who acquired full professional qualifications in one Member State to have them recognised
in another Member State. Yet, from the citizens’ point of view, the professional qualification recognition
procedures may be considered too complicated and overtly formalised, and perceived as barriers to
professional mobility. The Directive’s modernisation is considered to improve the efficiency of the
solutions. Work is aimed at:
− Facilitating mobility of specialists and providing services in restricted professions in the EU,
− Facing up to the challenge of filling in positions that require high qualifications,
− Offering more possibilities to jobseekers.
Box 10 Directive on the recognition of professional qualifications – proposed changes
On 19 December 2011, the European Commission presented a legislative proposal for the Directive that covers
the following objectives:
− Reducing the complexity of procedures thanks to the European professional ID that would allow making
fuller use of the benefits of the Internal Market Information System (IMI);
− Reform of the general regulations on taking up activity in another Member State or temporary transfers;
− Modernisation of the system for automatic qualifications recognition, in particular for nurses, midwives,
pharmacists and architects;
− Suggesting the legal framework for partially qualified specialists and notaries (in the Directive);
− Providing a fuller explanation of guarantees for patients who are concerned about doctors’ language
skills and the risk of problems in regulations;
− Introducing the legal requirement to provide thematic information on the provisions regulating the
recognition of qualifications on the basis of a comprehensive administrative infrastructure of eadministration for the entire qualification recognition process in a more user-friendly way;
− Starting a regular review and regular mutual evaluation of all restricted professions in Member States.
Work is also underway to effectively introduce the national qualifications framework. The Act of 18
March 2011 amending the Act on higher education, the Act on academic degrees and the academic title
and degrees and title in the area of art and amending certain other acts (Dz. U. of 2011, No. 84, item
455), which entered into force on 1 October 2011, the minister in charge of higher education was
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authorised to define the national qualifications framework, particularly to describe the effects of
education for education areas, taking into account education levels and profiles. The authorisation was
used to prepare the Ordinance of the Minister of Science and Higher Education of 2 November 2011 on
the national qualifications framework for higher education (Dz. U. of 2011, No. 253, item 1520) that
entered into force on 9 December 2011.
2.4.3.
Horizontal industrial policy
The global financial crisis highlighted that effective and efficient industry is a crucial factor in terms of
economic stability. The fast spreading of economic slowdown has shown that the idea of national
sectors and industries is inadequate in the context of progressing globalisation of the economy and we
need a cohesive European industrial policy that would respond to the phenomena taking place in the
global economy in a coordinated way. The purpose of the industrial policy is to create conditions that
would ensure maintaining the leading role of the united Europe in the World in the area of industry in the
future, and the industry would be innovative, sustainable and competitive.
The Communication from the European Commission entitled An Integrated Industrial Policy for the
Globalisation Era Putting Competitiveness and Sustainability at Centre Stage, published on 29 October
2010, COM(2010)614, which constitutes one of the seven leading initiatives of Europe 2020, presents
Commission actions and recommendations in the area of industrial policy. The document proposes a
strategy of supporting a strong, diversified and competitive industrial base in Europe, one that offers
well-paid jobs, low-emission, and making more effective use of resources. It presents more than ten
initiatives of the European Commission that will be of particular importance to the implementation of the
said leading initiative for industrial practice.
Box 11 Industrial Policy: Reinforcing competitiveness
On 14 October 2011, the European Commission published a Communication entitled Industrial Policy:
Reinforcing competitiveness, COM(2011)642. The Communication is one of the elements of Member State
evaluation in the wider context of the European semester and Europe 2020.
The document shows that economic revival after the crisis is taking place relatively slowly and remains relatively
weak in the EU. Economic revival and faster economic development are essential to creating jobs, generating
prosperity and balancing Member States’ public finance; they also offer possibilities of reducing the burden of
public deficit and debt. The Communication emphasises that competitive enterprises of all sizes are the main
driver of strong economic growth. To be able to continue playing the role, they nonetheless need a setting
conducive to developing new ideas and areas of activity. The Communication indicates the need to take up
urgent action in the following areas:
1) Structural changes in the economy;
2) Innovative industry branches;
3) Sustainable development and efficient management of resources;
4) Business environment;
5) Single Market;
6) Small and medium-sized enterprises.
The Communication inter alia divided EU Member States into four groups according to their share in industries of
technologically advanced sectors. Poland was classified in the third group which comprises “countries that are
catching up in terms of GDP per capita, and whose trade specialisation is in high-innovation intensity sectors
and technology-driven industries.”
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MINISTRY OF ECONOMY
The document suggests to take up actions aimed particularly at: improving framework conditions for
industry, strengthening the internal market, industrial innovation, capitalising on globalisation,
modernisation of industry and a dimension that takes into account the specific nature of the sector. Also,
reports on EU competitiveness and the situation in each Member State are to be presented on an
annual basis in the framework of monitoring the situation of industry in individual Member States. The
initial report, published along with the Communication, was devoted to the condition of national
industries, related research and innovation, and the approach to sustainable development.
Merging the new European horizontal industrial policy with a sectoral approach should take the form of
an evidence-based policy and open to all industry sectors.
In 2011, many important initiatives in industrial policy were initiated in the EU, also thanks to the effort
by the Polish presidency (e.g. debates and Council Conclusions on the relation between industry
development and the environment, Corporate Social Responsibility, deepening the Single Market; work
on the unitary patent protection, reducing the regulatory burden and applying the competitiveness test).
Yet, further actions in this area are necessary. Their main objective should be to maintain
competitiveness of the EU and individual Member States.
2.4.4.
Climate and Energy Package
The Climate and Energy Package is a set of instruments whose purpose is to implement such an
environmental protection policy that merges environmental objectives with energy policy objectives.
The Package introduces a comprehensive approach to managing greenhouse gas emissions in the EU.
It is supposed to help the European Union achieve its objectives related to preventing climate change,
commonly referred to as “3x20,” adopted during the European Council session in March 2007. The
objectives are:
− To increase energy efficiency by 20% by 2020;
− To reach 20% of renewable energy in the total final energy consumption in the EU by 2020;
− To reduce greenhouse gas emissions by at least 20%, compared to 1990, by 2020, with the
possibility to increase the volume by up to 30% provided that other developed countries commit to
comparable emission reductions and selected developing countries make an appropriate
contribution that matches their reduction capacity.
The European Council decided that when defining Member States’ shares in the total emission
reduction, a diverse, equitable and transparent approach will be applied. It should take into account the
specificities of individual economies and the relevant base years of the first commitment period referred
to in the Kyoto Protocol.
The Climate and Energy Package comprises the following legal acts published on OJ L 140 of 5 June
2009:
− Directive 2009/29/EC of the European Parliament and of the Council of 23 April 2009 amending
Directive 2003/87/EC so as to improve and extend the greenhouse gas emission allowance trading
scheme of the Community (the EU ETS Directive);
− Decision No. 406/2009/EC of the European Parliament and of the Council of 23 April 2009 on the
effort of Member States to reduce their greenhouse gas emissions to meet the Community’s
greenhouse gas emission reduction commitments up to 2020 (the non-ETS Decision);
− Directive 2009/31/EC of the European Parliament and of the Council of 23 April 2009 on the
geological storage of carbon dioxide and amending Council Directive 85/337/EEC, European
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Parliament and Council Directives 2000/60/EC, 2001/80/EC, 2004/35/EC, 2006/12/EC, 2008/1/EC
and Regulation (EC) No 1013/2006 (the CCS Directive);
− Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the
promotion of the use of energy from renewable sources and amending and subsequently repealing
Directives 2001/77/EC and 2003/30/EC (the RES Directive).
The above Directives and the Decision integrate areas of the Polish economy with the objectives of
environmental protection and climate protection. Poland must implement the provisions of the normative
legal acts into the Polish law.
One of the priority provisions of the Climate and Energy Package is sustainable energy generation from
fossil fuels, which allows to significantly reduce carbon dioxide emissions to the air by 2020. According
to the assumptions adopted by the European Commission, the EU climate and energy policy should be
built around three main objectives: preventing climate change, reducing the vulnerability of the EU to the
influence of external factors resulting from its dependence on imported fuels, and promoting
employment and economic growth. The purpose of priority treatment within the EU's energy policy is to
protect the climate. To achieve this, the 3x20 assumption was proposed.
The Climate and Energy Package reflects the opportunities and the current reduction efforts on the part
of Member States, which is particularly expressed by the allocation of greenhouse gas emission
certificates to be auctioned by individual Member States and the division of non-ETS commitments.
It should be noted that the fight against climate change requires a global approach and each country,
including Poland, should have its adequate share.
2.4.5.
Energy sector adjustment
The Act – Energy Law of 10 April 1997 sets out the rules of shaping the state energy policy, energy
company policies and the conditions for supply and use of energy and fuel. In addition, the Act in
question regulates the tasks of the President of the Energy Regulatory Office – the body responsible for
regulating the energy and fuel management. Subsequent amendments, primarily dictated by the need to
implement EU law, place emphasis on the development of a competitive electricity market,
empowerment of customers in the market and ensuring an appropriate level of security of electricity
supplies. In addition, a support system for electricity from renewable energy sources as well as highefficiency cogeneration was established. The above Act implemented inter alia the following directives:
− Directive 2001/77/EC of the European Parliament and of the Council of 27 September 2001 on
the promotion of electricity produced from renewable energy sources in the internal electricity
market,
− Directive 2003/54/EC of the European Parliament and of the Council of 26 June 2003
concerning common rules for the internal market in electricity and repealing Directive
96/92/EC;
− Directive 2003/55/EC of the European Parliament and of the Council of 26 June 2003
concerning common rules for the internal market in natural gas and repealing Directive
98/30/EC;
− Directive 2004/8/EC of the European Parliament and of the Council of 11 February 2004 on the
promotion of cogeneration based on a useful heat demand in the internal energy market and
amending Directive 92/42/EEC;
− Directive 2005/89/EC of the European Parliament and of the Council of 18 January 2006
concerning measures to safeguard security of electricity supply and infrastructure investment;
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MINISTRY OF ECONOMY
− Directive 2009/72/EC of the European Parliament and of the Council of 13 July 2009
concerning common rules for the internal market in electricity and repealing Directive
2003/54/EC.
The amendment to the Energy Law of 8 January 2010 refines and improves the solutions already in
place in the Polish legal system in terms of the security of electricity supplies and infrastructure
investments. In addition, the amendment inter alia transferred owner’s supervision over the electricity
transmission system operator to the competence of the Minister of Economy, streamlined the procedure
for switching between suppliers, regulated release of fuel reserves, as well as introduced a system of
support for agricultural biogas, and the obligation to make trading in electricity public. In order to reduce
speculative activities when booking connection capacity of wind farms in the power system, the
obligation to pay an advance on the connection fee and submit a document confirming the possibility of
building the source was introduced.
Work is currently underway on the new draft Act – Energy Law. The primary objective is to build a
coherent legal framework for the energy sector, including European standards, as well as to remove the
provisions on the issues of gas and renewable energy sources, that will be regulated by separate acts,
from the present Act – Energy Law. This solution is designed to organise, simplify and improve the
current regulations and to adjust the existing legislation to EU regulations – Regulation (EC) No
713/2009 of 13 July 2009 establishing an Agency for the Cooperation of Energy Regulators and
Regulation (EC) No 714/2009 of 13 July 2009 on conditions for access to the network for cross-border
exchanges in electricity and repealing Regulation (EC) No 1228/2003.
2.4.6.
Internal market and relations with third countries
In 2011, as in the previous years, the trend was visible that a number of third countries introduced trade
policy measures that gave rise to doubts about their compliance with WTO decisions. This practice was
justified by the effects of the recent global economic crisis. The result of EU actions on the WTO forum
was the establishment of a monitoring team for protectionist measures.
The EU also takes practical legal actions in terms of enforcement by their trade partners of
commitments on market access. After winning a dispute with China on China's exports restrictions on a
number of raw materials (bauxite, coke, fluorspar, magnesite, manganese, silicon carbide, silicon metal,
yellow phosphorus, zinc) on the WTO forum, on 12 March 2012 the European Union, United States and
Japan requested consultations with China on exports duties on rare earth metals, tungsten, and
molybdenum, which formally started the dispute within the World Trade Organization.
An important element affecting Poland’s relations with third countries in 2011 was the Polish presidency
of the EU Council in the second half of last year. In the field of the common trade policy of the EU,
Poland submitted and implemented an agenda that assumed starting the process of strengthening
economic and trade relations the EU in its immediate region in terms of both the eastern dimension
(Eastern Partnership countries, including Ukraine, Moldova, Georgia, Armenia, and also Russia), as well
as the southern dimension (North African countries and the Balkans). In addition, we have been striving
to further strengthen economic and trade relations of the EU with the US through the conclusion of a
preferential trade and economic agreement.
These actions match the philosophy presented by Poland that is aimed at making the EU trade policy
more dynamic in the global dimension and finding the right response to the process of gaining
dominance in the global economy and trade by Asian countries.
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The large untapped potential that would allow reinforcing the EU's external position lies in cooperation
with the southern and eastern countries of the region. Good neighbourly relations can strengthen
Europe's position in the global dimension, also in terms of economy and trade by bringing increasing
benefits at a relatively modest cost. Europe having economic links with its southern and eastern
neighbours will be seen as a strong partner capable to protect its interests.
Considering the scale and sum of both partners' economies, i.e. of the EU and the US, concluding an
ambitious economic and trade agreement would have a decisive influence on the situation in the global
economic and trade dimension. It would be a reference for other countries and other liberalising
economic and trade agreements concluded globally. Such an agreement would also be an element of a
counterweight to Asian domination in global economy and trade.
Eastern dimension of economic and trade relations
A DCFTA (Deep and Comprehensive Free Trade Agreement) is the most important part of broader
future Association Agreements between the EU and third countries. DCFTA agreements assume that
the freedom of trade will apply to almost all goods and services, and that a third country will adjust a
significant part of their regulations on trade and economic activity to EU standards. In addition to the
reduction in tariff rates or lifting trade barriers, it also results in the regulation of access to the services
market, regulation of intellectual property by protecting proprietary products in the EU. It also assumes
the protection of the so-called geographical indications (GIs). In 2011, the deadlock was broken and we
saw the completion of negotiations on the EU-Ukraine DCFTA. In addition, the DCFTA negotiations with
Moldova and Georgia were formally opened, and negotiations with Armenia started in early 2012.
In 2011, negotiations were finalised on the terms of Russia's accession to the World Trade Organization
(WTO), which brought 18 years of negotiations in this regard to an end. The announcement of Russia's
accession to the WTO took place on 16 December 2011 in Geneva at the WTO Ministerial Conference.
Poland has also signed four bilateral agreements with Russia imposing additional terms under which the
EU agreed to support Russia's accession to the WTO. They relate to services, resources, Russian
exports duties on wood and parts and components of motor vehicles. When negotiating Russia's
accession to the WTO, the EU signed an agreement with the Russian Federation to normalise the
problem of transfer flights over Siberia – an issue important to all European carriers, including the Polish
operator – LOT.
Southern dimension of economic and trade relations
As to relations with EU’s southern neighbours, it is important to work for deepening the economic and
trade integration within the Union for the Mediterranean in order to advance the process of building the
Euro-Mediterranean Free Trade Area, aiming ultimately at building an integrated Euro-Mediterranean
market.
In 2011, the negotiating mandate for DCFTAs with North African countries (Morocco, Tunisia, Egypt and
Jordan) was adopted, to eventually lead to the establishment of deep and comprehensive free trade
areas with these countries.
In the context of the ‘southern’ relations, 2011 also saw the adoption of EU autonomous trade
preferences for Western Balkans which, combined with the accession of Croatia to the EU and the
accession of Montenegro to the WTO, is an important factor stabilizing economic and trade relations the
EU in this particular region of southern Europe. In the case of Croatia, is an extension of the single
European market and extending the common trade policy to an important country in southern Europe.
This provides new economic and trade opportunities for EU and Polish companies.
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MINISTRY OF ECONOMY
Transatlantic dimension of economic and trade relations
At the meeting of the Transatlantic Economic Council in November 2011, it was decided to carry out a
feasibility study of the concept of the conclusion of a free trade agreement (FTA) between the U.S. and
the EU. The negotiations could begin in 2013. In parallel, negotiations are under way on the
Comprehensive Economic and Trade Agreement (CETA) with Canada. The EU-Canada Agreement will
form a part of the overall future transatlantic preferential economic and trade EU-US-Canada relations.
Other economic and trade matters
Finalising WTO negotiations on extending access to the government procurement market (GPA)
will stand for easier access of EU companies, including Polish companies, to the public procurement
markets of certain third countries. At present, the value of trade covered by the public procurement
between the European Union, the US, Canada, Japan, South Korea, Hong Kong, Norway, Switzerland,
Armenia, Iceland, Israel, Liechtenstein, Singapore, Chinese Taipei and Aruba, estimated at about EUR
500 billion, may increase by additional EUR 100 billion.
At the same time, the WTO DDA (Doha Development Agenda) negotiations in the framework of the
current round of multilateral trade negotiations aimed at liberalising global trade (reducing tariffs and
barriers to mutual trade) are facing a deadlock. The reason for this state of affairs were the effects of the
global crisis, especially in global trade since mid-2008, and a large divergence as to the expected
results of these negotiations (mainly a dispute between the US and China).
The aim of the reform of the EU system of tariff preferences for developing countries and least
developed countries (GSP) is to adapt the EU instrument for trade support to developing countries and
least developed countries to the new challenges that have emerged with the development and
establishment of new economic and trade regulations in the World. The GSP reform assumes a
maximum focus of EU trade assistance on countries most in need, which in effect stands for (in addition
to the consolidation of the system and improving its functionality) a deep reduction of the number of
beneficiaries (from 176 to about 80) and strengthening the system of graduation (doing away with
preferences for beneficiaries that do not meet the economic criteria).
The reduction of EU customs duties on imports of raw materials and components facilitates
access to raw materials and components from third-country markets, which are then used by EU
producers to manufacture more processed goods. This reduces the burden on European
manufacturers, including Polish ones – the costs of raw materials and components are thus lower.
In 2011, negotiations were underway on preferential trade and economic agreements between the
EU and major regions of the World. In addition to the aforementioned arrangements on the
Comprehensive Economic and Trade Agreement (CETA) with Canada, negotiations are also underway
with India, Singapore and Malaysia. Negotiations on the EU-Mercosur Association Agreement
(Argentina, Brazil, Paraguay, Uruguay) are also pending.
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2.5. Absorption of the EU funds
2.5.1.
Financial perspective for 2004–200610
The resources from structural funds were allocated in the form of operational programmes. In the
financial perspective 2004–2006, there were five mono-fund sectoral operational programmes (SOP)
implemented in Poland:
− Improvement of the competitiveness of enterprises (SOP ICE),
− Human Resources Development (SOP HRD),
− Restructuring and Modernisation of Food Sector and Rural Development (SOP Rural development),
− Fisheries and Fish Processing (SOP Fisheries),
− Transport infrastructure and maritime economy (SOP Transport).
Financing from the EU funds was also provided under dual-fund Integrated Regional Operational
Programme (IROP), implemented at the level of individual voivodeships. The process of implementing
structural funds was supported by the Technical Assistance Operational Programme.
On 30 June 2008, the eligibility period for all the programmes implemented under financial perspective
2004–2006 with the use of structural funds ended. Under structural funds granted to Poland for this
period, contracts were signed or decisions were issued to co-finance the implementation of 88.3
thousand projects with a total value exceeding PLN 35.5 billion. In the case of the Cohesion Fund, the
eligibility deadline for the costs incurred under projects was 31 December 2010. By the end of 2011, the
value of payment applications submitted by Poland to the European Commission amounted to about
EUR 5.5 billion, i.e. to 97.8% of available allocation within the Cohesion Fund.
In the financial perspective for 2004–2006, sectoral programmes were accompanied by the EQUAL
Community initiative aimed at eliminating inequalities on the labour market and by INTERREG aimed at
supporting the development of border areas.
The expenditure of EU funds between 2004 and 2006 impacted the basic economic categories. In 2006,
implementation of the National Development Plan for 2004–2006 helped reach GDP higher by between
0.4% (according to the MaMoR2) and 1.6% (according to the Hermin model) than without the
implementation of the National Development Plan. According to econometric models, this impact will be
at its maximum (about 10%) in the years to come. It is also estimated that in 2006 the investment level
was 7% higher thanks to the EU funds.
Based on: Ocena postępów Polski w zakresie spójności z Unią Europejską, [Evaluation of Poland’s progress in terms of
cohesion with the European Union], Ministry of Regional Development (MRD) 2007; Fundusze pomocowe Unii Europejskiej
– doświadczenia i perspektywy [EU Assistance Funds. Experience and Perspectives], M. Sapała−Gazda (edit.), MRD 2007;
Ewaluacja ex-post Narodowego Planu Rozwoju 2004-2006 [Ex-post evaluation of the National Development Plan for 20042006], MRD 2010; Wnioski z realizacji Polityki Spójności w świetle wyników prac analityczno-ewaluacyjnych okresu 20042006 [Conclusions from the implementation of the Cohesion Policy against the background of results of analyses and
evaluations for 2004-2006], MRD 2011, as well as periodic MRD reports on progress in the implementation of the
programmes.
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MINISTRY OF ECONOMY
2.5.2.
Financial perspective for 2007–2013
In the period between 2007 and 2013, as a result of the cohesion policy reform, the number of structural
funds was reduced to the European Regional Development Fund (ERDF) and European Social Fund
(ESF). The Cohesion Fund was preserved, but it is now subject to the same rules as the structural
funds.
Under the current financial perspective the following national programmes are implemented in Poland:
− Operational Programme Infrastructure and Environment
− Operational Programme Human Capital
− Operational Programme Innovative Economy
− Operational Programme Development of Eastern Poland
− European Territorial Cooperation Programmes
− Operational Programme Technical Assistance
− and 16 Regional Operational Programmes.
The objectives of measures under the new financial perspective were included in the National
Strategic Reference Framework (NSRF). The NSRF strategic objective consisted in creating
conditions to enhance the competitiveness of economy based on knowledge and entrepreneurship,
ensuring employment growth and an increase in the social, economic and spatial cohesion level in
Poland. The NSRF also provides for horizontal objectives, based on the EU strategic assumptions
and SWOT analysis of the Polish economy, which include increasing competitiveness and innovation of
enterprises.
Operational Programme Innovative Economy 2007–2013 (OP IE) is the key instrument under NSRF
designed to enhance competitiveness of enterprises through stimulating innovation. The total amount of
public funds involved in implementation of the programme in the period between 2007 and 2013 will
amount to over EUR 9.7 billion, of which EUR 8.3 billion from EU funds (ERDF). Over 90% of resources
will be used to finance measures in the following areas: research and development, innovations,
information and communication technologies (40% was allocated to direct support for entrepreneurs).
Under the OP IE, measures concerning product, process, marketing and organisational innovation will
be supported which contribute, whether directly or indirectly, to establishing and development of
innovative enterprises, at least at the national or international level. Entrepreneurs may apply for
support of, inter alia, the following ventures:
− Highly innovative ventures, regardless of the size of a company or a sector, apart from sectors
excluded based on separate regulations,
− Highly innovative projects of high value (Measure 4.5.1 OP IE),
− Providing business to business (B2B) electronic services (Measure 8.2 OP IE) and projects
related to electronic economy (Measure 8.1 OP IE) involving the provision of electronic services
by newly established small and medium-sized enterprises,
− Support for enterprises operating on the Single European Market,
− Research and development activities commissioned by entrepreneurs,
− Implementation of results of R&D activities, as well as of new technologies,
− Investments connected with R&D activities of enterprises,
− Initiating new enterprises of high innovation potential,
− Supporting cooperation links.
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From the point of view of Polish companies measures provided for in the Operational Programme
Innovative Economy are complemented by other programmes implemented under the NSRF
contributing to the development of entrepreneurship:
Operational Programme Human Capital (OP HC)
Employment growth and an increase in social cohesion are the main objectives of this programme, and
six strategic goals contribute to achieving these objectives:
− increasing the activity rate and employability of the unemployed and economically inactive,
− reduction of the areas of social exclusion,
− improvement of adaptability of enterprises and employees to changes in the economy,
− popularisation of education of the society at all educational levels, with a simultaneous increase
in the quality of educational services, and strengthening of their link with the needs of
knowledge-based economy,
− enhancing the public administration potential in the area of policy formulation and provision of
high quality services, as well as strengthening of partnership mechanisms,
− enhancing territorial cohesion.
OP HC provides for measures complementary to the measures supported at the central level and at
regional levels, aimed at strengthening the human resources capacity of enterprises by holding
specialist training and developing advisory services targeted at the specific needs of enterprises.
Approximately EUR 2.4 billion, i.e. 25% of the funds allocated for the OP HC (EUR 9.7 billion), was
earmarked for the support of broadly understood entrepreneurship. Including domestic funds, almost
EUR 11.5 billion was earmarked for the implementation of OP HC.
Operational Programme Infrastructure and Environment (OP I&E)
The objective of the programme is to enhance the investor appeal of Poland and its regions through the
development of technical infrastructure, preserving and improving at the same time the condition of the
environment and health, preserving the cultural identity, and developing territorial cohesion. The
programme provides for supporting projects related to transport, environmental protection, and energy
infrastructure development, and to the adjustment of enterprises to the requirements of environmental
protection. Furthermore, OP I&E also provides for supporting projects connected with energy security
and development of higher education. EUR 37.6 billion was be earmarked for the implementation of the
programme, of which EUR 27.9 billion will be provided by the European Union (including EUR 22.1
billion from the Cohesion Fund and EUR 5.7 billion from ERDF). Enterprises (including the large ones)
will be able to absorb approx. EUR 2.9 billion under OP I&E.
16 Regional Operational Programmes (ROPs)
The objectives of ROPs were defined at the regional level, with reference to the development strategy of
voivodeships and areas that require support identified therein. The overall objective of all 16
programmes consists in the development of the region concerned or improvement of its
competitiveness. Above all, ROPs provide for projects targeted at:
− Supporting economy and entrepreneurship,
− Environmental protection,
− Bridging gaps and developing cohesion,
− Development of the infrastructure/transport system,
− Improving living standards and the quality of life of citizens,
− Social infrastructure development,
− Tourism development.
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MINISTRY OF ECONOMY
The measures provided for in Regional Operational Programmes include direct financial support for
corporate investments, supporting participation in fairs, exhibitions, and domestic and foreign missions,
as well as supporting business environment institutions. The share of 16 ROPs in the total allocation of
cohesion policy funds amounts to 24.9% (i.e. EUR 16.6 billion); whereas almost ¼ of the ROP funds
was earmarked for the area Research and development, innovation and entrepreneurship (approx.
23.9% of the funds, i.e. approx. EUR 4 billion). Thus, ROPs constitute a very significant source of
support to companies operating on local and regional markets.
Operational Programme Eastern Poland Development (OP EPD)
The programme is intended to accelerate the pace of socio-economic development of Eastern Poland
(i.e. Lubelskie, Podkarpackie, Podlaskie, Świętokrzyskie, and Warmińsko-Mazurskie Voivodeships) in
accordance with the sustainable development principle. The main objective of this programme will be
achieved through the implementation of the following specific objectives:
− Stimulating the development of a competitive knowledge-based economy,
− Extending the availability of broadband Internet access in Eastern Poland,
− Developing selected metropolitan functions of voivodeship capital cities,
− Improving the availability and quality of transport connections between Eastern Poland
voivodeships,
− Increasing the role of sustainable tourism in economic development of the macro-region,
− Optimisation of the implementation process for the OP Eastern Poland Development.
Under Priority I – Modern economy, funding will be provided to such projects as construction and
extension of industrial parks, technology parks, etc.; thorough preparation of sites for productive
investments, modern services and production; establishing a cooperation network in the field of innovative
economic activity (e.g. establishing new and developing the existing cluster initiatives).
Implementation of OP EPD will involve funds of EUR 2.7 billion, including EUR 2.3 billion from ERDF
and EUR 0,4 billion from the domestic public funds.
Rural Development Programme for 2007–2013
RDP 2007–2013 sets out measures intended to accelerate the modernisation of Polish agriculture and
the development of rural areas. RDP 2007–2013 measures are implemented under four axes:
− Axis 1: Improving the competitiveness of the agricultural and forestry sector;
− Axis 2: Improvement of the environment and the countryside;
− Axis 3: The quality of life in rural areas and diversification of rural economy;
− Axis 4: Leader.
The total amount of funds earmarked for the implementation of RDP 2007–2013 is EUR 17.2 billion, of
which over EUR 13.2 billion will be provided from the European Agricultural Fund for Rural Development
(EAFRD), and about EUR 4 billion from the state budget.
Operational Programme Sustainable Development of the Fisheries Sector and Coastal Fishing
Areas 2007-2013
OP FISH 2007-2013 has been operational under the European Fisheries Fund, and its general objective
is to create a competitive, modern and dynamic fisheries sector based on sustainable exploitation of
resources. Funds earmarked for the programme amount to almost EUR 1 billion, 75% of which are
contributed from the EU budget. Support for investment in fishing vessels, aquaculture and processing
and diversification of fisheries is granted directly to entrepreneurs.
68
Progress in the implementation of the National Strategic Reference Framework for 2007-201311
The allocation of Community funds for Poland within the EU cohesion policy for 2007-2013 was agreed
at the level of approx. EUR 67.3 billion. Over EUR 48.7 billion was earmarked for the implementation of
national operational programmes, and more than EUR 16.5 billion – for regional operational
programmes. Financial resources earmarked under Objective 3 ETC exceed EUR 0.73 billion. More
than EUR 1.3 billion was earmarked for the National Performance Reserve (NPR) under Article 50 of
Council Regulation (EC) No 1083/2006 laying down general provisions on the European Regional
Development Fund, the European Social Fund and the Cohesion Fund and repealing Regulation (EC)
No 1260/1999.
By the end of December 2011, over 206 thousand formally correct applications for co-financing for an
amount exceeding PLN 447 billion were submitted under the operational programmes. Applications for
project co-financing of the highest value were submitted under OP Infrastructure and Environment, OP
Human Capital and OP Innovative Economy, where the co-financing applied for reached PLN 148.6
billion, PLN 113.8 billion and PLN 77.5 billion, respectively, and the number of formally correct
applications submitted amounted to 2.6 thousand, 130.1 thousand and 24.8 thousand, respectively.
Table 15 Absorption of the Structural Funds within The National Strategic Reference Framework
Application for co-financing
Programme
Number
Value of
beneficiaries’
expenditure
recognised as
eligible (EUR mln)
Level of
Value of EU allocation for
the years
co-financing
2007- 2013
(EUR mln)
(%)
OP IE
8.567
44.251
OP I&E
1.553
109.730
OP HC
30.507
33.016
OP TA
248
1.444
PO RPW
139
8.747
RDP
209
1.250
National level
41.223
198.438
Regional level
24.048
84.526
NSRF
65.271
282.964
Source: Source: Ministry of Regional Development,
Information System up to 31 December 2011.
Payment claim
Value of
beneficiaries’
expenditure
recognised as
eligible
(EUR mln)
Value EU
Level of
coalocation for
financing
the years
(EUR mln) 2007- 2013 (%)
24.920
73.8
15.677
9.001
26.6
80.394
70.4
35.776
27.637
24.2
27.409
69.3
19.782
16.444
41.6
1.227
58.0
1.006
855
40.4
6.393
68.7
3.728
3.125
33.6
1.044
68.6
381
315
20.7
141.388
70.5
76.350
57.379
28.6
53.801
78.8
45.033
29.355
43.0
195.189
72.6
121.383
86.734
32.3
according to data generated from the KSI SIMIK 07-13 National
Since the launch of the programmes approx. 65.3 thousand contracts/decisions for co-financing the
implementation of projects were signed/issued by the end of 2011, with the Community contribution of
nearly PLN 195.2 billion in total. The progress in contract signing varied among programmes, as well as
among priorities and measures within programmes. Programmes under which the highest amount of
Community funds was contracted included: OP Infrastructure and Environment, OP Human Capital and
OP Innovative Economy, where the value of contracts signed amounted to PLN 80.4 billion, PLN 27.4
billion and PLN 24.9 billion, respectively. Among the ROPs, the highest amounts were contracted by:
ROP of the Wielkopolskie Voivodeship, ROP of the Śląskie Voivodeship and ROP of the Wielkopolskie
Voivodeship, where the value of contracts signed in the part financed by the EU was almost PLN 5.3
billion in the Śląskie and Mazowieckie Voivodeship and 4.8 billion in the Wielkopolskie Voivodeship. If
we take the contracts signed against the funds allocated for a given programme, then the most
advanced ROPs in the analysed process would be those of Opolskie, Pomorskie and Wielkopolskie
Voivodeships. The value of contracts concluded under the said ROPs by the end of December 2011
constituted 96%, 93% and 91% of structural funds allocated for 2007-2013, respectively.
Based on the information of MRD’s Department for Coordination of Implementation of EU Funds, as well as periodic MRD
reports on progress in the implementation of the programmes.
11
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MINISTRY OF ECONOMY
By the end of 2011, the value of eligible expenditure under applications submitted by beneficiaries
exceeded PLN 121 billion, of which almost PLN 87 billion were expenditure corresponding to the EU
funding. The value of applications for interim payments submitted to the European Commission
amounted to almost EUR 20.5 billion in terms of EU contribution, whereas in the same 2011
applications for approx. EUR 9.8 billion were submitted. In the same period, the European Commission
transferred to Poland EUR 18.7 billion as refunds. Since the beginning of the programming period (i.e.
since 2007), the total amount of funds transferred by the European Commission both in the form of
advance payment and refunds amounted to EUR 24.9 billion.
As at the end of 2011, in terms of the legal form of entities carrying out projects, investments with the
highest total value were realized by local government units (LGU) – the estimated value of their projects
amounts approx. to PLN 59.4 billion, which constitutes almost 1/3 of the value of all contracts. Projects
with slightly lower value (PLN 54.7 billion, i.e. approx. 28% of all projects) are those carried out by
enterprises (including SMEs)12. The third group of beneficiaries whose investments received the highest
amount of EU funding (approx. PLN 49.7 billion, i.e. 26% of all projects) include public authorities and
government administration (with PLN 38 billion of the amount earmarked for public authorities and
government administration being infrastructural projects carried out by the GDDKiA).
When taking into account the amount of expenditure carried out by specific groups of beneficiaries13, by
the end of 2011 the largest expenditure in terms of EU contribution was reported by local government
units (PLN 28.4 billion, i.e. 32% of all expenditure incurred by the beneficiaries) and by public bodies
and government administration (PLN 23.6 billion, i.e. 28%). The value of eligible expenditure in terms of
EU contribution which the enterprises reported in their payment applications amounted to PLN 18.4
billion.
Chart 7 Number and value of co-financing contracts acc. beneficiaries’ type (as of the end of 2011)
number of projects
4.0%
3.1% 3.1%
4.6%
value of projects - EU contribution
8.9%
9.5%
33.3%
30.6%
Local self governement unit
25.6%
Company
Central administration unit
High school, research institution
21.6%
Non profit institution
28.2%
27.7%
Others
Source: Ministry of Regional Development, according to data generated from the KSI (SIMIK 07-13) National Information
System up to 31 December 2011.
As at the end of 2011, projects with the highest total EU contribution value were carried out by
enterprises under the OP Infrastructure and Environment (PLN 24.5 billion) and under OP Innovative
Economy (PLN 11.3 billion). The total EU funding for projects implemented by enterprises under the 16
ROPs equalled PLN 11.7 billion. On the basis of accepted payment applications enterprises’
expenditure in terms of EU contribution is the highest under the Regional Operational Programmes –
PLN 6.3 billion and under OP Innovative Economy – PLN 4.8 billion.
According to a simplified classification used for the purpose of reports drafted in the KSI SIMIK 07-13 system. Mapping
also available on http://www.funduszeeuropejskie.gov.pl/AnalizyRaportyPodsumowania/Strony/KSI_raporty.aspx
13 Beneficiaries expenditure based on the approved payment applications without taking into account corrections and
recovered amounts.
12
70
Chart 8 Number and value of co-financing companies’ projects by programme (as of the end of 2011).
bn PLN
25.0
24.5
20.0
15.0
13.1
11.7
10.0
6.3
4.1
5.0
4.9
4.8
3.0
0.4
0.0
Infrastructure and Innovative Economy
Environment
EU co-financing under contracts
Regional
Operational
Programmes
Human Capital
0.2
Development of
Eastern Poland
Beneficiaries expenditures in the EU
Source: Ministry of Regional Development, according to data generated from the (KSI SIMIK 07-13) National Information
System up to 31 December 2011.
2.5.3.
New financial perspective for 2014-2020
In October 2011, the European Commission presented the first versions of strategy papers defining the
main directions to be taken under the new financial perspective of the European Union for 2014-2020.
Funds available for Poland after 2013 will be earmarked not only for long-term investments. Due to the
still visible effects of the financial crisis, they will be also used to support short-term growth.
The European Commission proposed the following thematic objectives to be supported under the new
financial perspective:
1. Strengthening research, technological development and innovation;
2. Enhancing access to, and use and quality of, information and communication technologies;
3. Increasing competitiveness of SMEs, agricultural sector and fisheries and aquaculture sector;
4. Promoting the transition to a low carbon economy in all sectors;
5. Promoting adaptation to climate change, risk prevention and management;
6. Protecting the environment and supporting effective use of resources;
7. Promoting sustainable transport and removing bottlenecks in key network infrastructures;
8. Promoting employment and supporting employee mobility;
9. Promoting social inclusion and combating poverty;
10. Investing in education, skills and life-long learning;
11. Enhancing institutional capacity and effective public administration.
EU policy funds will support smart, sustainable and inclusive growth (i.e. the three main strategic
objectives of Europe 2020 strategy). The above-mentioned objectives include 7 flagship initiatives and
10 integrated guidelines for the economic and employment policies of the Member States. The flagship
projects consist of actions carried out at both the EU and national level. These are: Innovative Union,
Youth on the move, A digital agenda for Europe, Resource efficient Europe, An industrial policy for the
globalisation era, An agenda for new skills and jobs, European platform against poverty.
In addition to increasing flexibility and cohesion in financing the implementation of individual priorities
and simplifying the rules for granting support, the European Commission proposed that the resources
71
MINISTRY OF ECONOMY
distribution system should include such principles as: focusing on results (by means of adequate
indicators and monitoring mechanisms), establishing clear and measurable intermediate stages and
final performance objectives, universality of the performance reserve mechanism (5% of all resources
granted to each state) and complying by Member States with relevant ex ante and macroeconomic
conditionality.
The new developments put forward by the European Commission include: a third category of transition
regions (with GDP per capita amounting to 75-90% of the EU average), promoting the use of financial
instruments and the Partnership Agreement mechanism (negotiated strategy for achieving objectives
and results).
Box 12 New financial perspective – new mechanisms
The new financial perspective also introduces several new mechanisms:
1. Under structural funds a requirement to set aside specific financial resources for funding of specific thematic
areas (the so-called ring fencing). Financial ceilings apply to specific funds, and their threshold is
determined by the level of development of particular regions. The higher the level of development of a given
region, the higher the ceilings for expenditure earmarked for a given thematic area.
2. A requirement was introduced to comply with pre-conditions prior to the opening of intervention and
obtaining support from EU funds. These conditions apply to both the transposition of the EU law (in specific
areas) and an adequate system of intervention (guidance documents, systemic and institutional solutions,
etc.). The possibility of applying for funding for specific types of intervention is conditional on fulfilling the exante conditionalities or on indicating the direction towards complying with them. It needs to be emphasized
that the European Commission may suspend payment in case of failing to comply with the conditions for
receiving support.
3. A considerable emphasis was placed on the implementation of multi-fund operational programmes.
Following negotiations between the European Commission and Member States, the possibility of linking
several thematic objectives and funds at the priority axis level was introduced. Moreover, the multi-fund
programmes will be complemented by applying ERDF/ESF cross-financing lo a larger extent than it is now.
4. An important change also concerns the so-called list of major projects which will no longer have to be
approved by the European Commission. Moreover, there will be no restrictions on updating the list. The
eligibility of a major project will be based on eligible costs (EUR 50 million).
5. Another new instrument is the so-called partnership contract negotiated between the European Commission
on the one hand and central and regional authorities of Member States on the other. In addition to the
analysis of needs and growth potential, the partnership contract will present territorial challenges, i.e. the
areas of strategic intervention organised geographically. Specific areas shall receive directed support from
the EU funds. New operational programmes will elaborate on the provisions of partnership contract by
specifying, in detail, the method of including support for indicated areas of strategic intervention as well as
the mechanisms of complementarity and coordination with other programmes with respect to the estimated
scope of intervention and EU funds used.
Maximum co-financing indicators proposed by the European Commission for the new categories of
regions are as follows: 75-85% in less developed and most remote regions, 60% in transition regions,
50% in more developed regions.
Neither the distribution of funds among policies nor the amount of allocation for specific Member States
in the approaching financial perspective have been determined yet. Due to the euro area crisis, during
the discussion on the Multiannual Financial Framework 2014-2020 almost all of the net contributors to
EU budget propose to limit it by approx. EUR 100-150 billion. One of the elements limiting the allocation
level is the reverse safety net concept, which consists in limiting the increase in allocations from
cohesion policy for a given state compared to the period 2007-2013. Until the end of negotiations on the
shape of Multiannual Financial Framework, there will be no certainty as to what funds will be directed to
Polish enterprises in the coming years.
72
3. COMPETITIVENESS OF THE POLISH ECONOMY
3.1. International competitiveness rankings
In the light of international comparisons and rankings, Polish economy in still not a highly competitive
one. Information include in such rankings may be helpful while making investment decisions, but one
must not forget that their methodology has certain limitations, and therefore they should be interpreted
only in specific contexts.
Evaluations of the competitive position of the Polish economy as compared to other countries is
presented below, based on a number of renowned publications on the subject.
2012 Index of Economic Freedom – Heritage Foundation and Wall Street Journal
The authors of the annual Index of Economic Freedom ranking evaluate such areas as for example
business freedom, trade policy, tax burden, budgeting policy, labour market policy and the level of
corruption. In the current edition of economic freedom ranking, which evaluated 179 countries, Poland
was ranked 64th, moving up by 4 places compared to the previous year and overtaking 5 EU Member
States: France, Slovenia, Portugal, Italy and Greece. In comparison to the last year’s ranking, Poland
improved in 4 areas (corruption perception level, fiscal policy, monetary policy, labour freedom), went
down in 2 areas (budget expenditure, trade freedom), and repeated its score in 4 criteria (business
freedom, property rights protection, investment freedom and financial freedom). According to the
authors of the report, the most significant burdens to economic freedom in Poland include institutional
weakness, high corruption perception level, inefficient judiciary system as well as high budget deficit.
The area of trade and monetary policy was evaluated positively.
Table 16 Ranking of economic freedom
United
Czech
Germany France Spain Lithuania
Italy Slovakia
Poland
Kingdom
Republic
Ranking 2011
16
23
64
31
24
28
87
37
68
Ranking 2012
14
26
67
36
23
30
92
51
64
Source: Strategy and Analyses Department, Ministry of Economy based on Index of Economic Freedom 2011, 2012.
World Competitiveness Yearbook 2012 – International Institute for Management Development
(IMD)
The latest IMD World Competitiveness Yearbook ranks the competitiveness of 59 countries on the basis
of more than 300 detailed criteria. Factors accounted for in the ranking include economic performance
(domestic economy, international economy, employment, prices, etc.), public finance, fiscal policy,
quality of business legislation, business efficiency (productivity, corporate finances, management
practices, innovation), and infrastructure (technological, scientific, health and educational infrastructure).
In the most recent scoreboard of the most competitive World economies, Poland maintained its 34th
place it held last year. Among EU-27 Member States14, Poland was ahead of 10 countries.
14
The ranking does not include Latvia, Malta and Cyprus.
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MINISTRY OF ECONOMY
Table 17 IMD Ranking
United
Czech
Italy Slovakia
Poland
Kingdom
Republic
Ranking 2011
20
10
29
35
45
30
42
48
34
Ranking 2012
18
9
29
39
36
33
40
47
34
Source: Strategy and Analyses Department, Ministry of Economy based on The World Competitiveness Scoreboard 2012.
UNCTAD’s World Investment Prospects Survey 2010-2012
The UNCTAD’s report ranked Poland 12th top priority host economy for FDI in the World, and 3rd in
Europe. This means an improvement by one place compared to the previous edition of the report for the
period 2009-2011. It is noteworthy that among the EU Member States, only the following ones were
listed in the survey: Great Britain (7th place), Germany (10th), France (14th) and Spain (20th).
Table 18 Top priority host economy for FDI Ranking
United
Germany
France
Spain
Poland
Kingdom
Ranking 2009-2011
6
7
14
13
Ranking 2010-2012
7
10
14
20
12
Source: Strategy and Analyses Department, Ministry of Economy based on UNCTAD’s World Investment Prospects Survey
2010-2012.
Ernst & Young’s 2012 European Attractiveness Survey
This year’s edition of the European Attractiveness Survey has been prepared by the Ernst & Young for
tenth time already. The report includes results of the survey measuring the perception of attractiveness
of Europe and its competitors by a panel consisting of 840 foreign investors. This year, Poland ranked
2nd in terms of attractiveness of location for investment in the next three years. In the eyes of investors
Poland's strengths include: large and
Table 19 The most attractive European economies within 3 years time15
United
Czech
Italy Slovakia Poland
Kingdom
Republic
Ranking 2012
3
1
5
12
7
11
2
Source: Strategy and Analyses Department, Ministry of Economy based on Ernst & Young European Attractiveness Survey
2012.
“Doing Business 2012” report by the World Bank and IFC16
The World Bank’s Report is one of the most recognized and most often quoted studies of this kind.
World Bank’s experts evaluate only the microeconomic aspects of conducting business activity,
connected with regulations affecting 10 areas, regarded as essential for the life of a business, such as
starting a business, getting credit or protecting investors.
As indicated by the results of the most recent report – Doing business 2012 – Poland fell by 3 places in
comparison with the 2011 report and ranked 62nd (out of 183 countries) in the general ranking of ease of
doing business17.
As in the previous edition of the ranking, Poland scored the highest in the following categories: “ease of
getting credit” (8th place, no changes compared to 2011), “protecting investors” (46th – 2 places down),
and procedures related to trading across borders (46th – 10 places down).
No possibility to compare the ranking with the one from 2011.
International Finance Corporation
17 In the 2011 report, Poland ranked 70th, but based on to the updated methodology used in the 2012 ranking it means de
facto 59th.
15
16
74
Poland scored lowest with regard to formalities connected with obtaining building permits. According to
the authors of the report, the procedures are very time-consuming(301 days compared to the average of
152 days in OECD countries), highly formalised (over 30 formalities were listed), and costly (53.6% of
income per capita). In consequence, Poland occupies a remote position – 160th (down by 1 position
compared to 2011). Among the EU countries18, Denmark performed best in this respect (10th place),
and the front-runner among the EU-1219 countries was Lithuania (47th rank).
Poland noted a considerable decrease (by 11 places) in the “starting a business” category, and its
position is still very remote (126th place). Only such EU countries as the Czech Republic (138th place),
Greece (135th), Austria (134th) and Spain (133rd) scored lower than Poland. According to the authors,
the decrease resulted from the still insufficient scale of reforms20 in this area on the one hand, but also
from a greater progress achieved in this regard by other countries. In the case of Poland, the indicators
taken into account remained unchanged or improved only slightly in comparison to the previous year.
The only aspect in which Poland saw an improvement (by 1 place) is “enforcing contracts”. In fact,
Poland did not note any improvement in any of the indicators taken into account while assessing this
criteria. According to the authors of the report, the biggest problem is still the long time of enforcing
contracts (830 days against the OECD average of 518 days), even though it is considerably shorter
than a few years back (approx. 1000 days21). Among EU-12 countries, the highest positions in this
category are occupied by Lithuania and Latvia (15th and 17th place, respectively).
Poland noted its biggest fall in the ranking in the “resolving insolvency” category (down by 13 places in
comparison with 2011). Among the three indicators analysed in this category, two remained unchanged
compared to the previous year. They include: time and costs. The recovery rate fell down.
As for the ease of paying taxes, Poland was ranked 128th (no changes in comparison to 2011), before
such EU countries as: Slovakia (130th), Italy (134th) and Romania (154th). The authors of the report
estimate that en entrepreneur, in order to observe all Polish tax regulations, would have to make 29
payments (no changes in comparison to the previous ranking) totalling up to 43.6% of gross profits (0.9
percentage points more than the OECD average) and spend 296 hours per year for this purpose (down
by 29 hours). The best ranked new EU Member States were Cyprus (37th) and Estonia (51st).
In terms of the ease of “registering property”, Poland was ranked 89th (down by 2). The main reason for
the low score was the time-consuming registration process (152 days). In Lithuania, the country that
ranks highest (7th) among EU-27 countries, it takes 3 days to complete all the required procedures.
Table 20 Doing Business Ranking
United
Czech
Italy
Kingdom
Republic
Ranking 2011
6
19
26
45
25
70
83
Ranking 2012
7
19
29
44
27
64
87
Source: Strategy and Analyses Department, Ministry of Economy based on Doing Business 2012.
Slovakia
Poland
43
48
59
62
26 EU Member States were covered by the ranking, Malta excluded.
Countries that have joined EU since 2004, Malta excluded.
20 Data used in the ranking were being collected until 1 June 2011.
21 See the Doing business reports for 2004-2007. Data collected through surveys and in each country probe opinions in the
city with the highest number of inhabitants (in Poland it is Warsaw).
18
19
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MINISTRY OF ECONOMY
Global Competitiveness Report 2011-2012 by the World Economic Forum
The Global Competitiveness Ranking is a crucial component of the World Economic Forum annual
Global Competitiveness Report, based on evaluation of the Global Competitiveness Index (GCI), which
measures the general competitiveness of the economy. The index is based on 100 partial indices,
divided into 12 pillars in three major areas (basic requirements, efficiency enhancers and innovation and
sophistication factors). Some of the partial indices underlying the evaluation were established on the
basis of a survey conducted among entrepreneurs/managers between January and June 2011.22 The
data from public statistics was also used to some extent, primarily for the years 2010 and 2011.
In the recent WEF Ranking Poland's score has changed in comparison with the previous edition (2010–
2011), which is confirmed by its fall by 2 places (from 39th to 41st among 142 countries). At the same
time, Poland precedes 12 EU countries, namely: Cyprus, Slovenia, Portugal, Lithuania, Italy, Malta,
Hungary, Slovakia, Romania, Latvia, Bulgaria, and Greece.
Out of the 12 pillars, the weakest scores were given to infrastructure (74th place, down by 2),
macroeconomic environment (74th place, down by 13), business sophistication (60th place), innovation
(58th place, down by 4) and labour market efficiency (58th place, down by 5). The best scores were
granted for the following: market size (20th place, up by 1 place), higher education and training (31st)
and financial market development (34th).
Table 21 Ranking based on the Global Competitiveness Index (GCI)
United
Kingdom
12
Germany
France
Spain
Lithuania
Czech
Republic
36
Italy
Slovakia
Poland
Ranking
5
15
42
47
48
60
39
2010-2011
Ranking
10
6
18
36
44
38
43
69
41
2011-2012
Source: Strategy and Analyses Department, Ministry of Economy based on The Global Competitiveness Report 2010-2011,
2011-2012.
3.2. Poland and the European Union
In order to evaluate the progress of implementing the social and economic strategy of the EU, namely
the Europe 2020, a set of the so-called ten headline indicators, divided into 5 problems categories, has
been adopted. Headline indicators are presented, together with their definitions, in the tables below. In
the context of competitiveness, one should pay attention in particular to indicators concerning innovation
and education.
Compared to the EU average, Poland has a relatively good standing in terms of education, whereas in
the area of innovation, energy efficiency, poverty and social exclusion, Poland scores far below the EU
average. No significant changes of Poland’s score have been noted in recent years.
In Poland, 198 representatives of top management participated in the study, 78% of whom represented companies that
employ more than 100 p.
22
76
Box 13 Headline indicators – definitions
1. Employment rate, age group 20–64 is the share of working people aged 20–64 in the total population
in the same age group.
2. Gross domestic expenditure on research and development is the share of gross domestic spending
on research and development in the GDP. It comprises the expenditure on R&D by economic operators,
higher education institutions, state budget and private non-profit sector.
3. Greenhouse gas emissions indicator is the volume of emissions of six main greenhouse gases,
weighted by their potential impact on global warming, indexed to the base year 1990 (1990=100).
4. Share of renewable energy sources is defined as the share of energy from renewables in gross final
energy consumption.
5. Energy intensity of the economy is defined as the ratio of the gross inland consumption of energy and
the GDP for a calendar year. The gross inland consumption of energy is calculated as the total value of
consumption of five energy types: coal, electricity, oil, natural gas and renewable energy sources. GDP
is calculated based on constant prices, base year 2000. This indicator is measured in kg of oil equivalent
per EUR 1,000.
6. Share of early school leavers – is the percentage of 18–24-year-olds with at most lower secondary
education and not in further education or training.
7. Tertiary educational attainment, age group 30–34 – the percentage of population in that age group
who have successfully completed tertiary (or equivalent) education in the total population of that age.
8. Persons living in households with very low work intensity. This indicator informs about the share of
population aged 0–59 living in a household where the working-age members worked less than 20% of
their total work potential during the past year. The work intensity of a household is the ratio of the total
number of months that all working-age household members have worked during the income reference
year and the total number of months the same household members theoretically could have worked in
the same period. Moreover, a working-age person is a person aged 19–59, with the exclusion of
students in the age group between 18 and 24 years.
9. The at-risk-of-poverty rate is the share of people with disposable income below the at-risk-of-poverty
threshold in the total population. The threshold is set at 60% of the national median disposable income
in individual countries (after social transfers).
10. Severely materially deprived persons is the share of population declaring a lack of financial resources
to fulfil at least four out of nine needs (e.g. cannot afford a week holiday away from home once a year, a
colour TV, a washing machine, a car or a telephone in the household).
77
MINISTRY OF ECONOMY
Table 22 Major indicators of the Europe 2020 Strategy – Poland compared to the EU
Poland
Indicator’s
value
1
2
3
4
5
6
7
8
9
10
Indicators
Year
Employment
2011
64.8
Employment rate by gender,
age group 20-64
2010
64.6
Research and development as well as innovation
2010
0.74
Gross domestic expenditure
on R&D (GERD)
2009
0.68
Climate change and energy
Greenhouse gas emissions,
2009
83
base year 1990
2008
87
Share of renewables in gross
final energy consumption
Energy intensity of the
economy (proxy indicator for
Energy savings, which is
under development)
Education
Early leavers from education
and training
Tertiary educational attainment
by gender, age group 30-34
Poverty and social exclusion
Persons living in households
with very low work intensity
Persons at risk of poverty after
social transfers
Severely materially deprived
persons
EU-27
Indicator’s
value
71%
75%
2 (s)
2.01 (s)
1,7%
3%
Reduction by
Reduction by
83
89 14% compared 20% compared
to 1990
to 1990
12.4
15.48%
20%
11.7
168 14% increase 20% increase in
in energy
energy
efficiency
efficiency
165.7
9,4
8,9
373.9
2009
363.8
2011
2010
2011
5.6
5.4
36.9
13.5
14.1
34.6
2010
35.3
33.5
2010
2009
2010
2009
2010
7.3
6.9
17.6
17.1
14.2
10
9
16.4
16.3
8.1
2009
15
8.1 (s)
78
EU target until
2020
68.6
68.6
2010
2009
2010
S – estimates
Source: Eurostat
Poland’s
target until
2020
4.5%
10%
45%
40%
Reduction of
poverty by
aiming to lift at
least 1.5 mn
people out of
the risk of
poverty or
exclusion
Reduction of
poverty by
aiming to lift at
least 20 mn
people out of
the risk of
poverty or
exclusion
PART II
POLAND’S ECONOMIC GROWTH IN 2011
4. GROSS DOMESTIC PRODUCT
4.1. GDP dynamics and growth drivers
The period of stable and sustainable economic growth in virtually all sectors that began in 2004
continued until mid-2008. The growth incentive was Poland's accession to the European Union, and
both the advantages and the stock cycle resulting from the fears about short-term effects of this process
translated into a relatively high quarterly GDP increases at the beginning of this period. Economic
activity peaked in 2007, when the GDP increase reached 6.8% in yoy terms.
The stage of fast economic growth that still continued in 2008 was halted by the onset of the financial
crisis. The economy responded with a considerable adjustment of stocks and investments as well as
with a decrease in household consumption. In the following years, the role of growth stimulator, which
previously had been attributed to private investors, was taken over by public investments. In addition,
after its collapse in 2009, international trade visibly ‘rebounded’, whereas the rise in consumption and
private capital expenditure was less spectacular. The sustainable character of growth results, however,
from the fact that both the consumption as well as investments and exports (excluding 2009) have
positive influence on the economic growth. This is what happens also today and it is a positive sign for
the development of the situation in the nearest future.
Chart 9 GDP growth rate in 2000-2011
%
6.8
7
6.2
6
5
5.3
5.1
4.3
4.3
3.9
4
3.9
3.6
3
2
1.2
1.6
1.4
1
0
2000
2001
2002
2003
2004
2005
2006
2007
Source: CSO.
79
2008
2009
2010
2011
MINISTRY OF ECONOMY
When analysing seasonally adjusted data on economic growth, it can be indicated that a fall in its
dynamics (quarter on quarter) occurred only in 4Q08. In the next 3 quarters the growth rate was close to
0.5%, and in the further 8 quarters it oscillated at a level exceeding 1%. This meant that the annual
economic growth rate gradually increased to peak at the end of 2010. Compared to other countries,
economic growth in Poland was characterised by the lowest (excluding Slovakia) changeability and it
culminated in 2009. As a result of stable and permanent growth of Polish economy, the 2011 GDP of
Poland was over 10% higher than in 2008, i.e. in the period before the effects of the crisis became
visible in the majority of countries. Sweden, which was the runner-up, can boast an almost 5% growth,
whereas the GDP for the entire EU fell by nearly 1%. In 1Q12, the first symptoms of yet another
slowdown could be observed, which was due to both the ongoing fiscal consolidation and deteriorating
external situation.
After stock adjustment in 2009, they were rebuilt in 2010, which caused the domestic demand,
stimulated by increased consumption, to become the major economic growth driver. This process
culminated in 4Q10, when investment demand started replacing stock as the growth stimulator.
Throughout 2011, the contribution of individual consumption and investments was identical and
amounted to 1.6 percentage points.
Table 23 GDP and domestic demand growth rate in 2005-2011 (constant prices)
Domestic
demand
Years
C
2.7
5.2
4.6
6.1
2.0
3.5
2.1
Consumption
including:
Ci
Cp
2.1
5.2
5.0
6.0
4.9
3.7
5.7
7.4
2.1
2.0
3.2
4.4
3.1
-0.7
2005
2006
2007
2008
2009
2010
2011
C – total consumption
Ci – individual consumption
Cp – public consumption
Gcf – gross capital formation (accumulation)
Gfcf – gross fixed capital formation (investment)
Source: Central Statistical Office.
Accumulation
Including:
DD
Gcf
Gfcf
1.4
6.5
2.5
16.1
14.9
7.3
24.3
17.6
8.7
4.0
9.6
5.6
-11.5
-1.2
-1.1
9.3
-0.4
4.6
9.6
8.1
3.6
DD – domestic demand
E – exports of goods and services
I – imports of goods and services
GDP – Gross Domestic Product
Foreign trade
E
8.0
14.6
9.1
7.1
-6.8
12.1
7.5
I
4.7
17.3
13.7
8.0
-12.4
13.9
5.8
GDP
3.6
6.2
6.8
5.1
1.6
3.9
4.3
The rate of use of industrial capacity increasing together with the economic recovery influenced
investment decisions of entrepreneurs. In 2011, the growth rate of private sector expenditure was
definitely higher than the growth rate of public sector expenditure and after a two-year downward
tendency it amounted to 16.9% (in current prices). During the whole 2008–2011 period an increase was
observed in public investments, including those related to the construction and reconstruction of
infrastructure, mainly with reference to the organisation of European Football Championship in 2012. Its
pace was particularly fast in 2008 and 2009.
2011 saw the weakening of economic activity in European economies. After a relatively good first half of
the year, in the last quarter of the year the majority of countries experienced a decline in GDP, including
Germany – Poland’s major partner. It also had affected the Polish economy, yet with a slight delay.
Analyses of economic situation seem not to confirm the symptoms of economic recovery related to the
data for 1Q12 and suggest a further slowdown in the economic growth rate.
80
Chart 10 Quarterly demand decomposition of GDP in 2008-2012 (in pp.)
% 10
8
6
4
2
0
-2
-4
2q
1q
20
08
20
0
3q 8
20
0
4q 8
20
0
1q 8
20
0
2q 9
20
0
3q 9
20
0
4q 9
20
0
1q 9
20
1
2q 0
20
1
3q 0
20
1
4q 0
20
1
1q 0
20
1
2q 1
20
1
3q 1
20
1
4q 1
20
1
1q 1
20
12
-6
Individual consumption
Public consumption
Inventories
Net exports
GDP
Source: Strategy and Analyses Department, Ministry of Economy based on CSO data.
By observing a several years timeframe, one can identify a regularity related to a fluctuating growth rate
of specific aggregated demand components. Similarly as in the case of the last economic slowdown, the
lower importance of internal demand is accompanied by a positive contribution of external demand,
which significantly mitigates negative effects of fluctuations of demand components. A significant part of
these adjustments results from imports-intensive stock cycle.
Table 24 Demand decomposition of GDP in 2006-2011 (in pp.)
2006 2007 2008 2009 2010 2011
Total consumption, including
4.3 3.8 4.8 1.6 2.7 1.6
3.1 3.0 3.4 1.3 1.9 1.9
Public consumption
1.1 0.7 1.3 0.4 0.8 -0.2
Gross capital formation, including
3.1 5.1 1.0 -2.8 1.9 2.1
2.7 3.4 2.1 -0.3 0.0 1.6
Inventories
0.4 1.6 -1.1 -2.5 1.9 0.4
Net exports, including
-1.1 -2.1 -0.6 2.7 -0.7 0.7
Exports
5.4 3.7 2.9 -2.7 4.8 3.2
Imports
6.6 5.8 3.5 -5.5 5.5 2.5
GDP
6.2 6.8 5.1 1.6 3.9 4.3
Source: Strategy and Analyses Department, Ministry of Economy based on CSO data.
Structural determinants of growth are best reflected by an analysis based on the neoclassical
production function. Decomposition of factors influencing the growth in social prosperity makes it
possible to single out challenges for demographic processes and relevant policy areas, mainly those
linked to the labour and capital market. The remaining factors, referred to as the total productivity
growth, reflect an improvement in the level of workforce education, capital quality, as well as
streamlining work organisation, and innovation.
81
MINISTRY OF ECONOMY
Table 25 Economic growth factors in Poland in 2001-2011 (in pp)
Total factor
Share of working
Employment Number of
Activity rate
productivity Capital (1) age population
rate
hours
(2)
2001
1.2
1.5
1.4
1.1
-0.1
-1.7
-0.9
2002
1.5
2.0
0.9
0.5
-1.2
-1.3
0.5
4.0
3.6
0.8
-0.1
-0.9
0.5
0.2
2003
2004
5.4
4.9
0.6
0.2
-0.3
0.3
-0.3
3.7
1.2
0.8
0.3
0.7
1.1
-0.3
2005
2006
6.3
3.1
0.8
0.3
-1.1
3.2
0.0
6.8
2.6
1.0
0.0
-0.2
3.3
0.2
2007
2008
5.1
1.5
1.1
-0.1
0.7
1.8
0.0
1.5
0.5
1.2
0.1
0.9
-0.8
-0.5
2009
2010
3.8
2.6
1.1
0.4
1.0
-1.1
-0.2
4.3
2.6
1.2
0.2
0.5
0.0
-0.2
2011
1) Due to the delayed effect of fixed capital formation on the growth of production the dynamics indicators were put 1 year
forward.
2) Calculation according to the neo-classical function of production: u ∆lnL/pop + (1-u) ∆ lnK/pop + ∆lnA, where:
Y – Gross Domestic Product
L – Labour resources (annual average of persons employed in the economy)
L=population *activity rate*employment rate*number of hours
K – Capital resources (the value of gross fixed assets in the economy)
u and (1-u) weighting of both production factors: Labour factor u=2/3 and capital factor (1-u=1/3)
A – The so-called Solow’s Rest or the total productivity of production factors (TFP – total factor productivity)
Source: Calculations by Strategy and Analyses Department, Ministry of Economy based on CSO, Labour Force Survey and
Eurostat data.
Real GDP
per capita
Table 26 Employment rate in Poland among persons aged 15-65 in comparison with the EU (in %)
EU-27
EU-15
Poland
Source: Eurostat.
2006
64.4
66.1
54.5
2007
65.3
66.8
57
2008
65.8
67.1
59.2
2009
64.5
65.8
59.3
2010
64.1
65.4
59.3
2011
64.3
65.5
59.7
Table 27 An average annual effective working time per one employee per week in Poland in comparison
with the EU (in hours)
EU-27
EU-15
Poland
Source: Eurostat.
2006
37.9
37.2
40.9
2007
37.9
37.2
41
2008
37.8
37.1
41
2009
37.6
36.9
40.7
2010
37.5
36.8
40.6
2011
37.4
36.7
40.5
In 2011, as in the previous years, the major growth factor consisted in the productivity increase of
production means, which is also the key determinant in the medium run. Capital, or the increasing fixed
asset resource used by the economy, also had a stable input in growth. Demography, understood as
increasing share of population in the working age, remains a favourable factor, as well as increasing
labour force participation of the group. This was largely due to the actions taken to prevent early
retirement of more senior workers. It was not followed, however, by an increase in employment rate.
Furthermore, labour was used less intensively, as the number of hours worked by workers continued to
decrease. Presently, the employment rate (which reflects the percentage of people of working age who
are in employment) amounts to almost 60%, which is still considerably lower than in more developed EU
countries.
82
The improvement of the majority of indicators reflecting structural determinants of growth, which was
observed after Poland joined the EU, deteriorated significantly as a result of the crisis. Although Poland,
unlike the majority of EU countries, did not experience a significant recession, which was partially the
result of structural reforms implemented after the accession, the still insufficient level of labour
resources utilisation requires taking further action, especially in the face of demographic challenges
whose effects will become apparent in the nearest future. We still expect the contribution of capital
resources to be positive and to further saturate the economy with capital. The infrastructure
development, as well as inflow of foreign capital to sectors with the highest growth potential along with
an improvement in the quality of human capital are the key factors that should help to maintain the real
convergence process in medium-term perspective.
4.2. Internal demand
Domestic demand was the main factor of economic growth in 2004–2008, with the highest share in
2007 After a year’s break since 2010 internal demand was determining the GDP growth rate again. This
resulted from the rebuilding of stocks, which were considerably reduced during the crisis. In successive
quarters of the year, investment demand began to have growing influence on the dynamics of internal
demand. In 4Q11 it was already the main driver of growth.
In 2011, the consumption growth rate decreased from 3.4% in 2010 to 2.1% due to an unprecedented
fall in public consumption. Dynamics of household consumption decreased only slightly from 3.2% in
2010 to 3.1% in 2011. The slower growth in household consumption resulted from an insignificant raise
in salaries, which was caused mainly by freezing the wages fund in the public sector, a smaller increase
in pensions and inflation. The Social Benefit Fund grew by 5.2%. On the other hand, there were some
positive effects of increasing employment rate, which in business sector grew by 3.2%.
Chart 11 Domestic and foreign demand contribution to the GDP growth in 2005-2011
%
10
8
6
4
2
0
-2
-4
2005
2006
Domestic demand
2007
2008
2009
Foreign demand
2010
2011
GDP
Source: CSO.
The gradual improvement in the labour market encouraged households to make financial commitments.
However, the growing uncertainty about the economic outlook made both borrowers and banks act
more cautiously on the credit market. Consequently, the household credit dynamics in 2011 was slightly
lower, which was due to a slower increase in the value of mortgage loans and a decrease in the value of
consumer loans. In 2011, the nominal value of household consumer and mortgage debt increased by
83
MINISTRY OF ECONOMY
PLN 56.3 billion (in 2010 by PLN 58.7 billion) and totalled PLN 530.2 billion. There was a credit growth
in terms of mortgage loans (while the CHF debt share decreased again to 51.5% of the total amount of
granted mortgage loans). The importance of loans denominated in PLN increased; they accounted for
38.1% of the value of mortgage loans. The value of consumer credit granted to households fell by 2.1%.
This was due to strengthening the criteria for granting such credit, though according to a survey carried
out by the National Bank of Poland the scale of such strengthening was much smaller than in the case
of mortgage loans.
Chart 12 Domestic demand components contribution to the GDP growth in the years 2008-2012
% 10
8
6
4
2
0
-2
-4
2q
1q
20
08
20
0
3q 8
20
0
4q 8
20
0
1q 8
20
0
2q 9
20
0
3q 9
20
0
4q 9
20
0
1q 9
20
1
2q 0
20
1
3q 0
20
1
4q 0
20
1
1q 0
20
1
2q 1
20
1
3q 1
20
1
4q 1
20
1
1q 1
20
12
-6
Public consumption
Inventories
Domestic demand
GDP
Source: CSO.
In 2011, the rate of increase in households’ financial assets significantly slowed down (from 15.4% in
2010 to 2.2% in 2011). Liquid assets in the form of cash and deposits were growing at the fastest rate,
whereas the value of shares and units in mutual investment funds decreased. The process of moving
away from more risky assets led to a decrease in companies’ capitalisation and stock exchange trading
with an increase in trade volume. Despite a bearish period at the WSE, it attracted 38 new listings,
which is more than in the previous year (34), including Jastrzębska Spółka Węglowa with the largest
IPO accounting for 63% of the total value of IPOs. However, the value of IPO decreased by a
staggering 45%.
Different trends were observed on the market of indirect forms of investing, namely investment funds,
where less risky investments were the subject of interest. Nevertheless, a growth of assets at the
highest level since the beginning of the financial crisis was observed in this sector. The 22.8 billion
increase in the value of assets is at the same time the fourth best result reported in the last 10 years –
higher increases in the assets of investment funds were observed only between 2005 and 2007.
The growth of domestic demand, just like during the growth phase of the previous cycle, was the main
reason why the rate of economic growth increased. Cyclical fluctuations in investments, and in 2010
also the rebuilding of stocks, influenced the economic cycle. The consumption of households, whose
growth rate in spite of the GDP slowdown was faster than that of GDP in 2009, was the factor stabilising
the economic fluctuations. The economic revival in 2010 also brought an acceleration in household
consumption. The level of investments was also stabilised by structural funds and the funds related to
the organisation of the European Football Championship in 2012.
84
Chart 13 Changes in private consumption (data adjusted seasonally) and the CPI in the years 2008-2012
% 7
2.5 %
2
5
1.5
4
1
3
0.5
2
0
1
-0.5
0
-1
1q
20
2 q 08
20
3 q 08
20
4 q 08
20
1 q 08
20
2 q 09
20
3 q 09
20
4 q 09
20
1 q 09
20
2 q 10
20
3 q 10
20
4 q 10
20
1 q 10
20
2 q 11
20
3 q 11
20
4 q 11
20
1 q 11
20
12
6
Private consumption
CPI
Source: CSO.
The domestic demand growth rate for 2011 amounted to 3.6%. Following a slump caused by the crisis
and related mainly to the stock cycle, an increase in the domestic demand was noted already in 4Q09.
The growth was systematically increasing in the next quarters to peak in 4Q10, when the internal
demand rose by 6.3%. In 2011, the domestic demand dynamics gradually decreased (in Q1 2012 it
increased by 2.7%). The falling individual consumption rate was accompanied by the growth of
investment demand. However, the slowdown in public consumption of 0.2 pp was especially significant
as it decreased the growth rate. Following their significant growth, in 2010 the importance of stocks
decreased. Their contribution to growth dropped from 2 pp to 0.4 pp. The fall in consumption increased
especially in the second half of the year, in the last quarter it amounted to merely 2.1% and remained at
this level also in 1Q12. The dynamics of investments, which reached its peak (9.7%) in 4Q11,
decreased at the beginning of 2012 to 6.5% in the first quarter.
4.3. Impact of investments on the GDP dynamics
The investment acceleration observed since 2006 was hindered in particular by negative external
effects related to the global financial crisis. Consequently, between 2009 and 2010 the level of capital
expenditures decreased, although its scale was moderate. Despite an improvement in the economic
situation and the related good financial performance of companies, the scale of investments’ revival in
the 2nd half of 2010 was disappointing. As a result, the contribution of investments to economic growth
has remained negative. In the next quarters of 2011, investment dynamics took up and the rate of
growth in capital expenditures in 2011 amounted to 8.1%.
Table 28 Accumulation and investment rates as compared with the real growth of GDP and gross fixed
capital formation in the years 2005-2011
2005 2006 2007
2008
2009
2010
2011
GDP growth rate
3.6 6.2 6.8
5.1
1.6
3.9
4.3
Growth rate of gross fixed capital formation
6.5 14.9 17.6
9.6 -1.2 -0.4
8.1
Gross accumulation rate
19.3 21.1 24.4 23.9 20.3 21.0 21.7
Gross fixed capital formation rate
18.2 19.7 21.6 22.3 21.2 19.9 20.2
Source: Calculations by Strategy and Analyses Department, Ministry of Economy based on CSO data.
85
MINISTRY OF ECONOMY
Accelerated investments resulted from the increased activity of the private sector. The fall in private
investments, especially in 2010, was considerably larger than the corresponding fall observed in other
EU countries. In the case of Polish economy, public investments helped to mitigate the negative effects
of the decrease in the level of investments generally. Their scale was incomparable to the one reported
in developed countries and was on average twice as high as than in the EU. This led to a considerable
decrease in the share of private capital expenditures in overall expenditures. The related low base effect
allowed for a significant bounce-back, with the scale of recovery in 2011 being modest.
After equalling the value of analogous indicators for the EU and the euro area in 2009, the degree of
utilisation of production capacity in the industrial manufacturing sectors in Poland again remains
significantly below the level for these countries, despite a similar scale of recovery. Therefore, there is
still a significant stimulus for increasing investments, especially in this sector.
Table 29 Private and public sector’s investment in the years 2005-2010 (in % of GDP)
Private sector
EU-27
Euro area
Poland
Public sector
EU-27
Euro area
Poland
Source: Eurostat
2005
2006
2007
2008
2009
2010
18.1
17.7
14.8
18.7
18.2
15.7
18.9
18.6
17.4
18.6
18.2
17.7
16.4
16.1
16.0
16.1
15.9
14.3
2.3
2.5
3.4
2.5
2.5
3.9
2.6
2.6
4.2
2.8
2.6
4.6
2.9
2.8
5.2
2.7
2.5
5.6
Chart 14 Dynamics of gross fixed capital formation (left axis) and GDP (right axis) in years 2008-2012
20
7
15
6
10
5
5
4
0
3
-5
2
-10
1
-15
0
%
1q
20
2 q 08
20
3 q 08
20
4 q 08
20
1 q 08
20
2 q 09
20
3 q 09
20
4 q 09
20
1 q 09
20
2 q 10
20
3 q 10
20
4 q 10
20
1 q 10
20
2 q 11
20
3 q 11
20
4 q 11
20
1 q 11
20
12
%
GDP
Source: CSO.
4.4. Impact of exports on the GDP dynamics
Exports recovered in 2011 after having suffered significantly in 2009 from the recession and the slump
of economies of Poland’s main trade partners. Economic recovery in these countries allowed
enterprises to increase their exports sales in 2010, and in 2011 this trend continued, though with less
intensity. Imports grew slower than exports, which manifested itself by a positive contribution of net
86
exports in the GDP growth, which amounted to 0.7 pp. The value of exports of goods in 2011 amounted
to almost EUR 140 billion and constituted approx. 38% of the GDP.
In all quarters of 2011, the contribution of net exports to GDP was positive. However, in the 1st half the
contribution was rather small, whereas in the second one it became significant. In 1Q11, the positive
growth trend in exports continued, whereas imports slowed down significantly. In 2Q11, the appreciation
of Polish złoty contributed to limiting the exports growth rate. Imports behaved similarly. In the 2nd half
of 2011, the depreciation of Polish zloty strengthened the position of exporters and at the same time
limited the competitiveness of imports whose growth stabilised at the level noted in 2Q11. This allowed
the external demand to once again become the driver of economy in the 2nd half of 2011.
The share of exports in the GDP, which is the factor determining the degree of openness of Polish
economy, was still relatively slow, which allows for limiting the influence of external factors, such as the
one related to the slump in trade as a result of the crisis, though at the same time it does not enable the
potential of exchange growth to be exploited fully. Consequently, although Poland is constantly
increasing its share in the global trade, the economic recovery in 2010 was not fully used and the share
remained practically unchanged (1.1%).
Chart 15 Contribution of the exports and imports of goods and services in GDP 2008-2012
% 10
8
6
4
2
0
-2
-4
-6
-8
2q
1q
20
08
20
0
3q 8
20
0
4q 8
20
0
1q 8
20
0
2q 9
20
0
3q 9
20
0
4q 9
20
0
1q 9
20
1
2q 0
20
1
3q 0
20
1
4q 0
20
1
1q 0
20
1
2q 1
20
1
3q 1
20
1
4q 1
20
1
1q 1
20
12
-10
Exports
Imports
Net exports
GDP
Source: CSO.
The modest appreciation of the Polish złoty, observed in the 1st half of 2011, contributed to a decline in
the price competitiveness of Polish producers. The rapid depreciation of the Polish złoty in the 2nd half of
2011 significantly improved their bargaining position. Apart from the deteriorated balance of trade in the
1st half of 2011, the scale of internal imbalance was increased even further by income deficit, especially
the one connected with portfolio capital. The positive influence of transfers was related to the increase
in income connected with government transfers.
In 2011, deficit of the balance on the current account of balance of payments amounted to EUR 16
billion (against EUR 16.5 billion in 2010), but in relation to the GDP it decreased from 4.6% to 4.4%.
Almost 70% of this value was achieved due to the inflow of long-term capital, i.e. FDIs. Additionally, the
capital inflow recorded on the capital account constituted over 53% of the current account deficit.
87
MINISTRY OF ECONOMY
Chart 16 Growth rate of exports of goods and services (left axis) and economic growth (right axis) 20082012
%
7
15
6
10
5
5
4
0
3
-5
2
-10
1
-15
0
%
1q
20
2 q 08
20
3 q 08
20
4 q 08
20
1 q 08
20
2 q 09
20
3 q 09
20
4 q 09
20
1 q 09
20
2 q 10
20
3 q 10
20
4 q 10
20
1 q 10
20
2 q 11
20
3 q 11
20
4 q 11
20
1 q 11
20
12
20
Exports
GDP
Source: CSO.
Following a significant increase in 2008, real unit labour costs were decreasing in the 2009–2011
period, which stimulated the growth of exports. In the EU-15 countries, the costs increased also in 2009
and then dropped in the following years to a similar extent, though this happened with a one-year delay.
Table 30 Changes in real unit labour costs in Poland compared with the European Union
2005*
2006
EU-27
-0.8
-1.2
EU-15
-0.6
-0.9
Poland
-2.3
-2.5
* in 2005 Polish methodology changed
** estimates
Source: Eurostat.
2007
-0.9
-0.7
-1.3
2008
1.0
1.1
4.3
2009
2.9
3.0
-1.4
2010
-1.6
-1.5
-0.1
Chart 17 Labour productivity of particular sectors in 2005-2011 (2005=100)
%
170
Total
Manufacturing
150
Industry
Construction
140
Market services
160
130
120
110
100
90
80
70
2005
2006
2007
2008
2009
Source: OECD.
88
2010
2011
2011**
-0.6
-0.5
-1.4
The significant differences in labour productivity in specific sectors needs to be noted. The ones
focusing on exports, chiefly industrial manufacturing sectors, are characterised by a much faster growth
in productivity, especially when compared to service and construction sectors.
4.5. Role of sectors in GDP formation
In 2011, the gross value added rose by 4% when compared to 2010, which is a slightly lower growth
rate than that of the GDP. Value added constituted approx. 88% of the GDP. The remaining part
consisted of tax on products, reduced by subsidies on products. Apart from the financial and insurance
sector and agriculture, all other sectors of economy had a positive impact on growth. The biggest
contribution to the growth of value added was rendered by the industry.
Table 31 Growth rate of the GDP and gross value added in the years 2005-2011 (%)
Specification
GDP
Added value
including:
Agriculture
Industry
Construction
Trade; repair of motor vehicles
Transportation and storage
Accommodation and catering
Information and communication
Financial and insurance activities
Real estate activities
Professional, scientific and technical activities;
administrative and support service activities
Public administration, defense, education, human health
and social work activities
Arts, entertainment and recreation; other service
activities; activities of household and extra-territorial
organizations and bodies
Source: CSO.
2005 2006 2007 2008 2009 2010 2011
3.6 6.2 6.8 5.1 1.6 3.9 4.3
3.3 6.0 6.7 5.1 1.8 3.9 4.0
0.3
3.5
6.6
4.1
8.6
7.2
-3.3
7.7
-0.5
4.7
-4.3 -4.1
9.9 10.0
12.5 9.4
4.7 4.7
9.9 4.2
1.4 3.0
4.5 6.5
5.2 30.3
3.6 -2.4
6.0 11.4
-1.7 9.1
6.0 1.3
5.8 11.6
6.4 4.3
-1.5 -3.9
3.1 1.4
9.5 3.4
15.4 -27.5
-1.0 3.2
8.9 6.2
-7.0
9.4
6.4
2.6
7.3
2.6
-1.9
3.2
5.7
1.1
-0.3
6.3
11.8
4.6
6.2
2.5
0.6
-2.5
2.9
2.1
1.1
2.0
2.7
1.8
3.2
0.2
1.0
3.5
5.1
0.4
6.8
-1.0
-2.8
0.8
The strong economic recovery that has been observed in the industry and in the financial sector since
2003 culminated between 2006 and 2007, gradually extending to the remaining sectors. However, the
period of financial crisis seriously diminished its role. In 2009, the share of industry in growth reached an
all-time low, and in 2010 it did not improve much. This sector, which at the time of fast economic growth
usually expands faster than the value added, quickly rebounded after achieving poor results in the
crisis-stricken 2009. The construction industry undergoes considerable fluctuations. Between 2007 and
2009, the value added of this sector increased dramatically and levelled off between 2008 and 2010. A
minimal yet positive contribution of non-market services remains constant.
An analysis which shows how the value added is created gives an insight into structural changes taking
place in the Polish economy. An increase in the value added in services has been observed. This is
particularly apparent in transport. The contribution of construction sector remains stable. Following a
decrease resulting from the influence of economic factors at the beginning of this century, the sector
restored its importance during the last four years. The contribution of agriculture is falling. As a result of
the industry sector recovery, which was stronger than in the remaining ones, its share in value added
rose to the level last noted in 2004.
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MINISTRY OF ECONOMY
Table 32 Changes in the structure of value added in 2005-2011 in current prices
Specification
2000 2005 2006 2007 2008 2009
Agriculture
4.9 4.6 4.3 4.3 3.7 3.6
Industry
23.3 24.6 24.6 24.4 24.1 24.6
Construction
7.8 6.3 6.7 7.4 7.7 8.1
Trade; repair of motor vehicles
19.4 18.8 18.8 18.3 18.3 18.8
5.1 5.5 5.7 5.6 5.5 5.6
Accommodation and catering
1.3 1.2 1.2 1.1 1.2 1.2
3.4 4.3 4.1 4.0 4.1 4.1
5.0 4.4 4.6 5.3 5.3 3.9
6.6 6.4 6.4 6.1 6.1 5.6
Professional, scientific and technical activities;
6.4 6.3 6.4 6.5 6.9 7.1
administrative and support service activities
O-Q Public administration, defense, education,
13.3 14.1 13.9 13.6 13.9 14.1
human health and social work activities
R-U Arts, entertainment and recreation; other service
3.5 3.5 3.4 3.3 3.4 3.3
activities; activities of household and extraterritorial organizations and bodies
A
B-E
F
G
H
I
J
K
L
M-N
2010 2011
3.8 3.6
23.7 25.1
8.2 8.1
19.4 19.7
6.0 6.0
1.2 1.2
3.7 3.5
4.3 4.1
5.6 5.4
6.8 6.6
14.1 13.8
3.1
3.0
The knowledge of sectoral structure of GDP formation and of the growth rate of the value added in
individual sectors makes it possible to divide the sources of economic growth by sectors. In 2011, as in
the previous year, industry contributed the most to the economic growth. The market service sector lost
its position already in 2009. The importance of construction and retail sales increased again. The only
sector which negatively influenced value added was the financial sector. Although its negative
contribution was significantly lower than in 2009. The remaining sectors had a minimal yet positive
contribution to economic growth.
Chart 18 Sectoral decomposition of GDP in the years 2005-2011
%
8
7
6
5
4
3
2
1
0
-1
-2
2005
Agriculture
Agriculture
Financial activities
Others
2006
2007
Industry
Transport…
Value added
2008
2009
Construction
Accomodation…
Proffesional
GDP
2010
2011
Trade and repair
Information…
Administrative…
90
4.6. Gross domestic product per capita in Poland compared to
other countries
In 2011, the GDP nominal value amounted to PLN 1,524.7 billion. Taking into account the purchasing
power of money, the GDP per capita increased from the level of 51% of the EU-27 average in 2005 to
65% in 2011.
According to the estimates by Eurostat, the Polish GDP per capita as per purchasing power parity
increased (in real terms) in 2011 by 4.3%, whereas in the EU by 1.3%.
Table 33 GDP per capita of selected countries of EU in 2005-2011 compared (purchasing power parity)
2005
EU-27
22.5
Euro area
24.8
Czech Republic
17.8
Germany
26
Hungary
14.2
Poland
11.5
Slovakia
13.5
Source: Eurostat STRIND.
2006
23.7
26.1
18.9
27.3
14.9
12.3
15
in EUR thous.
2007 2008 2009
25
25 23.5
27.4 27.4 25.6
20.7 20.2 19.3
28.9 29 27.2
15.4 16 15.2
13.6 14.1 14.3
16.9 18.1 17
2010
24.4
26.5
19.4
28.8
15.8
15.3
17.9
91
2011 2005 2006
25.1 100 100
110 110
20 79.1 80
30.1 116 115
16.5 63.1 62.9
16.4 51.3 51.8
18.4 60.2 63.2
EU27=100
2007 2008 2009
100 100 100
110 110 109
82.7 80.9 82.2
115 116 116
61.5 63.9 64.7
54.4 56.3 60.7
67.8 72.5 72.5
2010
100
108
79.5
118
64.7
62.6
73.3
2011
100
79.6
120
65.8
65.1
73.3
5. LABOUR MARKET
5.1. Employed persons
The marginal improvement in 2011 economic situation in 2011 was not reflected by better indicators of
the Polish labour market. From the onset of the global financial crisis, the growth rate of the number of
the employed decelerated visibly. Following average annual increases of ca. 4% between 2005 and
2008, since 2009 we have been witnessing increases of approx. 1%.23 In 2011, the number of employed
aged 20–64 increased by 186 thousand compared to the previous year.
Table 34 Persons aged 20-64 employed in 2005-2011
Specification
2005
2006
2007
2008
2009
2010
2011
Number of employed (in thous.) 13,662 14,175 14,832 15,399 15,490 15,583 15,769
Previous year = 100
103.1
103.8
104.6
103.8
100.6
100.6
101.2
Source: Central Statistical Office, Labour Force Survey, Calculations by Strategy and Analyses Department, Ministry of
Economy.
In 2011, the employment rate, indicating the share of working population aged 20–64 in the total
population of the same age, amounted to 64.8% and increased by 0.2 pp compared to the previous year
(the Europe 2020 target for Poland is 71%).
In terms of the employment rate, in 2011 the gap between Poland and the other EU countries affected
by the economic crisis narrowed. Following a constant growth in the employment rate for the EU-27
countries since 2002, due to the 2009 and 2010 economic crisis there has been a change in the
tendency and the employment rate diminished by 1.3 pp and 0.4 pp, respectively. In 2011, the value of
the indicator remained at the same level as in the previous years, i.e. it amounted to 68.6%.
Table 35 Situation on the labour market in 2005-2011 in the age group of 20-64 (%)
Specification
2005
2006
2007
2008
2009
2010
2011
Economic activity rate24
70.9
69.7
69.4
69.9
70.6
71.3
71.6
Employment rate
58.3
60.1
62.7
65.0
64.9
64.6
64.8
Source: Central Statistical Office, Labour Force Survey, Calculations by Strategy and Analyses Department, Ministry of
Economy.
This edition of the Report is the first one based on indicators for the 20–64 age group. Data presented here are not
comparable with the data included in the previous editions concerning persons from two age groups: 15-64 or 15 and above.
The Europe 2020 objectives in the area of labour market have been set for the 20–64 age group. By analysing changes in
the value of indicators in this age group, one can evaluate the progress in implementing the commitments taken. Due to the
lack of available, coherent data of the Central Statistical Office on people aged 20–64 for the period between 1998 and 2011,
this analysis was based on Eurostat data. As the adopted methodology varies, some slight differences in the level of
indicators may occur when making comparisons with the CSO data for the recent years.
24 Economic activity rate is a percentage share of professionally active population (the working population or the
unemployed) in the total population of the specific category (aged 15+). The employment rate is the percentage share of the
working population in the total population of the specific category, whereas the unemployment rate is a percentage share of
the unemployed in the professionally active population.
23
93
MINISTRY OF ECONOMY
The employment rate in Poland is still among the lowest in the EU. A lower value was reported in
Ireland (64.1%), Bulgaria (63.9%), Romania (62.8%), Spain (61.6%), Malta (61.5%), Italy (61.2%),
Hungary (60.7%) and in Greece (59.9%).
In Poland, the employment level among young people is a significant problem. With the deterioration of
the economic situation in the aftermath of the global financial crisis, 2009 saw a reversal of the trend
which envisaged an improvement in employment rates of the youngest employees. In 2010 and 2011,
employment among persons aged 15–24 and 30–34 further deteriorated. In 2011, the employment rate
for these groups reached the level of 24.9% (1.4 pp less than in the previous year) and 79.3% (0.5 pp
less than in 2011), respectively.25 In the case of the 25–29 age group, the rate was similar to the one
from the previous year (73.8%).
Chart 19 Average employment in the enterprise sector (in thousands) in the years 2005–2012
6000
tousand persons
5000
4000
3000
2000
1000
20
05
0
20 1
05
0
20 7
06
0
20 1
06
0
20 7
07
01
20
07
07
20
08
01
20
08
07
20
09
0
20 1
09
0
20 7
10
0
20 1
10
0
20 7
11
0
20 1
10
0
20 7
12
01
0
Total
Manufacturing
Construction
Trade and repair
Source: Statistical Bulletins of the Central Statistical Office, LFS, calculations by Strategy and Analyses Department, Ministry
of Economy.
Table 36 Average employment in the enterprise sector (in thousands)
2009
Total
5,327
Industry
2,455
Mining and quarrying
180
Manufacturing
2,027
Electricity, gas, steam and air conditioning
supply
148
Water supply, sewerage, waste
management and remediation activities
100
Construction
436
Trade and repair
1,092
Hotels and restaurants
463
Transport, storage and communications
102
Real estate, renting and business activities
89
Source: Statistical Bulletins of Central Statistical Office.
2010
5,373
2,442
176
2,013
2010/2009
100.8
99.5
97.7
99.3
2011
5,544
2,495
168
2,065
2011/2010
103.2
102.1
95.5
102.6
150
100.8
153.0
102.2
104
443
1,093
464
109
92
103.7
101.6
100.1
100.2
106.3
103.3
109
477
1,117
470.4
117
98,4
104.8
107.6
102.2
101.5
107.5
107.5
In 2011, the average employment rate in the enterprises sector increased by 3.2% in comparison to
2010 and amounted to 5,544 thousand persons. The fall in employment was reported only in the mining
25
Eurostat
94
sector. The highest increase in employment rate was observed in the following sectors: construction,
hotels and restaurants and services for property and companies.
Among the sectors that enjoyed a significant share in the employment rate in 2011, the biggest rise in
average employment was reported in the case of civil engineering companies (by 11.4%) and specialist
construction works (by 10.8%). The employment rate was also higher in the case of companies selling
cars and providing repair services, manufacturing metal products and among retailers. The employment
rate decreased in companies manufacturing textiles and the wholesale trade industry.
5.2. Unemployment and unemployment rate
In 2011, unemployment in Poland in the 20–64 age group was 1,664 thousand persons on average.26
Compared to 2010, the number of the unemployed increased by 28.3 thousand. The unemployment
rate in 2011 reached 9.5%, with the unemployment among women amounting to 10.3% and among
men to 8.9%.
According to the registered unemployment statistics, 1,982 thousand persons remained out of work at
the end of 2011. The registered unemployment rate was 12.5%, i.e. 0.2 pp higher than at the end of
2010.
One of the most important economic factors shaping the situation on the labour market is the relatively
uncertain economic situation. Despite an improvement in the economic situation since its collapse in
2009, enterprises seem to continue with their austerity strategies and do not increase employment.
Chart 20 LFS unemployment rate and registered unemployment rate at the end of the quarter in the years
2005–2012
%
20
15
10
5
1 q 2005
2 q 2005
3 q 2005
4 q 2005
1 q 2006
2 q 2006
3 q 2006
4 q 2006
1 q 2007
2 q 2007
3 q 2007
4 q 2007
1 q 2008
2 q 2008
3 q 2008
4 q 2008
1 q 2009
2 q 2009
3 q 2009
4 q 2009
1 q 2010
2 q 2010
3 q 2010
4 q 2010
1 q 2011
2 q 2011
3 q 2011
4 q 2011
1 q 2012
0
LFS unemployment rate
Unemployment rate registered (at the end of the quarter)
Source: Statistical Bulletins of the Central Statistical Office, LFS, calculations by Strategy and Analyses Department, Ministry
of Economy.
In Poland, unemployment tends to be long-term. In the surveyed population, 57% were unemployed for
over a year, 17% for between two and five years, and 28% did not work for over five years.27
Eurostat
CBOS (2012), Bezrobocie i bezrobotni w badaniach opinii społecznej, [Unemployment and the unemployed in public
surveys], Warsaw
26
27
95
MINISTRY OF ECONOMY
5.3. Structural mismatch on the labour market
Modernisation and restructuring processes in the Polish economy are conducive to changes in the
labour demand structure both on local and national labour markets. Changes in the labour demand
structure require an appropriate adaptation of labour supply through the development of employee
qualifications and an increase in their mobility related to their willingness to work outside their current
place of residence.
In Poland it is not common to improve one’s vocational qualifications. In 2009–2011, only 10.7% of
people aged 25 and above participated in any activity linked with raising their vocational qualifications
and other skills.28 In addition, there is a downward tendency in this indicator as in 2005–2007 and 2007–
2009 it amounted to 11.7% and 11.9%, respectively.
There is a clear correlation between the intensity of the educational process and age, educational
attainment and the place of residence. The number of people who raise their qualifications decreases
with their age. People who do raise their qualifications are usually holders of university degrees or
graduates of post-upper secondary schools; they comprised 62.2% of all the people raising their
qualifications in 2009–2011 (in 2005–2007 and 2007–2009: 57.5% and 57.4%, respectively).29 Almost
half of those raising their qualifications are people from cities of over 100,000 residents (in 2005–2007:
49%; in 2007–2008: 49.3%; in 2009–2011: 50.4%).
Chart 21 Professional qualifications improving in each age group (share of total)
%
30
2005-2007
2007-2009
2009-2011
20
10
0
25-29
30-34
35-39
40-44
45-49
50-54
55 and more
Source: Strategy and Analyses Department, Ministry of Economy based on Czapiński J., Panek T., (2011) Social Diagnosis
2011.
Raising qualifications by an individual clearly impacts his/her situation on the labour market. There was
a systematic increase in the share of employed people among those aged 25–39 who raised their
qualifications. Among women the share of employees increased from 71% to 75% in 2009–2011 (in
2007–2009 an increase from 76% to 85%).30 Among men raising their qualifications the share of
employees increased from 82% to 85% in 2009–2011 (in 2007–2009 an increase from 86% to 88%).
Czapiński J., Panek T. (red.) (2011) Social Diagnosis 2011, the Council for Social Monitoring, Warsaw.
Ibidem.
30 Ibidem.
28
29
96
Despite the clear results indicating an important connection between raising qualifications and having a
job, public awareness of the need for raising one’s vocational qualifications is low. In 2009–2011, only
3% of the unemployed regarded their lack of qualifications as the cause for being unemployed.31
The structural mismatch is also caused by a relatively low mobility of the workforce in Poland. A small
scale of internal migrations from low-demand areas to high labour demand areas contributes to the
spatial concentration of unemployment.
Despite a small scale of internal migrations, the public awareness of the need for territorial mobility on
the labour market is increasing. The increase in the declared mobility of the unemployed aimed at
finding a job is a positive phenomenon. In 2011, 68% of the unemployed were willing to start a job
outside their place of residence (an increase of 8 pp compared with the previous year). Furthermore,
35% of the unemployed declared that they would move to a different town if that were to ensure their
employment (an increase of 10 p.p. compared with the previous year).
5.4. Foreign migration for economic reasons
Following Poland’s accession to the European Union in 2004 and the gradual opening of labour markets
by Member States, many Polish citizens decided to leave Poland to work abroad. This resulted in a
significant increase in migration in the first years after the accession. On 1 May 2011 two last EU
countries, Germany and Austria, which until then maintained limitations in this area, liberalised the
access to their labour markets.
The economic migration rate peaked in 2007, when 2.3 million Poles lived abroad.32 With the financial
crisis leading to a significant deterioration in economic situation in Western Europe, where the demand
for workforce decreased and the unemployment rate increased, migration became a less attractive
alternative in the eyes of Polish workers. At the end of 2010, nearly 2 million Poles lived abroad,
including 1.6 million in the EU countries.
The 2011 National Census showed that at the time of Census approximately 1.9 million people
habitually residing in Poland were staying abroad for more than 3 months.33
The number of people interested in economic migration oscillates around 6.5% among the employed
people, around 20% among the unemployed and around 8% among the economically inactive people.34
Thus, there are no significant indications that the economic migration of Poles to other countries may
increase in the future.
Apart from economic migration, the phenomenon of return migration can also be observed. At times of
the economic crisis in Western Europe economic causes constituted an important reason behind the
Czapiński J., Panek T. (red.) (2011) Social diagnosis 2011, the Council for Social Monitoring, Warsaw.
Central Statistical Office (2011) Informacja o rozmiarach i kierunkach emigracji z Polski w latach 2004-2010 [Information
on the sizes and directions of emigration from Poland in 2004–2010], Warsaw; The data concern people staying temporarily
abroad, i.e., in accordance with the above-mentioned source, longer than 3 months.
33 Central Statistical Office (2011), Results of the National Population and Housing Census 2011. Basic information on the
socio-demographic situation of the population of Poland and on housing resources. The study drafted for the Demographic
Congress on 22–23 March 2012 [Wyniki Narodowego Spisu Powszechnego Ludności i Mieszkań 2011. Podstawowe
informacje o sytuacji demograficzno-społecznej ludności Polski oraz zasobach mieszkaniowych.
Opracowanie przygotowane na Kongres Demograficzny w dniach 22–23 marca 2012 roku].
34 Czapiński J., Panek T. (red.) (2011) Social diagnosis 2011, the Council for Social Monitoring, Warsaw.
31
32
97
MINISTRY OF ECONOMY
returns (declared by 38.3% returning emigrants in 200935) such as: the loss of job, the decrease in
income compared to the remuneration in Poland and the inability to find employment abroad. In 2011,
27.1% of respondents decided to come back for economic reasons. Short-term economic migration
more and more frequently becomes a part of the life plan and is naturally followed by settling again in
Poland (33.5% answers in 2011).
People with migration experience are more active on labour market in Poland. However, clear
differences between women and men are visible. Compared with the general population men with
migration experience more frequently found employment or started their own economic activity, but they
were also more frequently unemployed, whereas women with migration experience less frequently
worked or started their own economic activity, and they were unemployed three times more often than
the general population.
Table 37 Experience of emigration and labor market situation in 2011 (in %)
Experience of emigration in
total
last 4 years
men
women
men
women
Employed
80.1
54.4
71.0
57.6
Including self-employed
9.3
2.7
7.5
3.3
Unemployed
14.8
22.8
6.8
7.1
Economically inactive
5.1
22.8
22.2
37.7
Source: Strategy and Analyses Department, Ministry of Economy based on Czapiński J., Panek T., (2011) Social Diagnosis
2011.
Box 14 The legalization of stay of foreigners in Poland
Pursuant to the Act of 28 July 2011 on the legalisation of stay of certain foreigners in the territory of the Republic
of Poland (Dz. U. of 2011 No. 191, item 1133), which entered into force on 1 January 2012, foreigners staying
illegally in Poland could legalise their stay by submitting an application for the residency permit for a defined
period of time (2 years) in the period from 1.01.12 to 2.07.12. The regulation concerned foreigners:
− Staying continuously in Poland at least since 20 December 2007 and whose stay in the territory of the
Republic of Poland was illegal on the day on which the Act entered into force (i.e. on 1 January 2012),
− Staying continuously in Poland at least since 1 January 2010 and who prior to that date were granted a final
decision on refusal to award the refugee status along with the expulsion decision and whose stay in the
territory of the Republic of Poland was illegal on the day on which the Act entered into force (i.e. on 1
January 2012),
− For whom on 1 January 2010 proceedings for the award of the refugee status initiated following another
application were ongoing.
The residence permit for a defined period of time entitles a foreigner to be employed in Poland without a work
permit based on an employment contract.
In Poland the number of immigrants is insignificant. Foreigners account for only 0.2% of the habitual
residents of Poland.36 In 2011 under the abolition law foreigners submitted a total of 9,300 applications
and more than 2,400 people legalised their stay. This exceeds the total number of applications
submitted by foreigners during the last abolitions in 2003 and 2007/2008, which amounted to a total of
5,541.
In view of the need to plan and coordinate in the future specific measures and solutions in the area of
employment aimed mainly at allowing foreigners performing work that is desirable from the point of view
Czapiński J., Panek T. (red.) (2011) Social diagnosis 2011, the Council for Social Monitoring, Warsaw.
Central Statistical Office (2011), Results of the National Population and Housing Census 2011. Basic information on the
socio-demographic situation of the population of Poland and housing resources. The study drafted on the Demographic
Congress on 22–23 March 2012.
35
36
98
of economic development and competitiveness to participate in the Polish labour market, a document
entitled Polish Migration Policy – current situation and requested measures [Polityka migracyjna Polski –
stan obecny i postulowane działania], adopted by the Council of Ministers on 31 July 2012, was
developed.
Box 15 Polish Migration Policy – current situation and requested measures
Polish Migration Policy analyses and assesses the actual state of, certain directions for actions and priorities in
migration areas covering such issues as: legal migrations, counteracting illegal migration, integration of and
granting international protection to foreigners, emigration, efficient functioning of the legal and institutional system
and monitoring migration processes.
A number of recommendations were adopted, including:
1. Setting out the priorities for adopting and legalising the stay of foreigners:
a) Identifying groups that require taking up specific actions: people of Polish origin, economic immigrants,
students, family members, foreigners with integration potential (cultural closeness, command of the Polish
language, etc.);
b) Increasing the share of certain categories of foreigners on the Polish labour market: specialists with
desired qualifications, scientists, and university graduates.
2. Revising provisions on the stay of foreigners in Poland and their possibility to work:
a) Simplifying the provisions on the rules for stay and work in Poland, while strengthening actions aimed at
preventing illegal immigration;
b) Introducing single residence permit entitling to work and stay in Poland, and extending access to the
labour market for foreigners staying legally in Poland.
3. Developing and implementing effective programmes of the integration of foreigners.
a) Introducing integration programmes for people applying for refugee status; improving programmes for
integration of people enjoying international protection; extending integration programmes to include other
categories of foreigners; focusing more on the education of children of migrants;
b) Providing foreigners with free access to legal advice.
4. Preventing illegal immigration
a) Prioritising voluntary returns;
b) Introducing provisions allowing for legalisation – in justified cases – the stay of people whose stay is
illegal.
5. Strengthening the migration management system
a) Extending the mandate of the Head of the Office for Foreigners to include tasks within the competence of
the Ministry of Interior (repatriation and citizenship issues in the scope not reserved for other bodies) and the
Ministry of Labour and Social Policy (appeal instance in cases on work permits – following the introduction of
the single residence and work permit);
b) Strengthening of the control held by the Head of the Office for Foreigners over the policy implemented by
heads of divisions for foreigners at voivodeship offices.
6. Monitoring migration phenomena in Poland
a) Collecting data important from the point of view of migration management (labour market needs,
effectiveness of integration programmes); national authorities carrying out regular analyses on individual
aspects of migration;
b) Integration of registers where data on proceedings in the cases of foreigners are gathered.
99
6. FOREIGN TRADE
6.1. Situation in Polish foreign trade in 2011
In 2011, Polish foreign trade faced severe economic turbulence and the rising threat of the second wave
of global economy crisis. Particularly its symptoms affected the markets that are key to our trade: those
of the euro area and other EU countries. After a period of post-crisis recovery, whose rate varied across
regions and countries, in the 2nd half of 2011 structural weaknesses of public finances and the banking
system of many developed countries emerged and triggered a sovereign debt crisis of certain euro area
countries (Greece, Ireland, Portugal, Spain), potentially threatening the stability of the euro area and the
EU as a whole.
The rapid deepening of the sovereign debt crisis entailed increasing uncertainty as well as an
investment risk and debt servicing costs not only for the most indebted countries but also for other
countries, especially Germany and France, whose banks were involved to the greatest extent in
financing peripheral economies prior to the crisis.
The build-up of threats in the financial sector of the euro area and their more and more explicit
translation into the real situation also of the biggest European economies (France, Italy, and even
Germany) observed in 2011 resulted in growth deceleration in the 2nd half of 2011, increasing the
likelihood of a clear slowdown in the following year.
The estimates of the International Monetary Fund (as of July 2012) show a global product growth
slowdown from 5.3% in 2010 to 3.9% in 2011, and it is expected to further deteriorate in 2012 to 3.5%.
On the euro area markets that are crucial for Polish trade (over 54% share in exports and nearly 47% in
imports), the economic growth amounted to 1.5% in 2011 and was slower by 0.4 percentage points than
in 2010. The economic slowdown of the largest economies in the euro area translated into a similar
tendency throughout the EU, where the average annual GDP growth rate decreased to 1.6% from 2% in
2010.
The global economic slowdown, particularly on the main markets of the euro area, was determined by
the decline in the consumer and business confidence, resulting in the decrease in the internal demand,
which for many years had been the main driver of the growth of the Polish exports and the general trade
turnover in commodities.
Following a period of some demand recovery in the euro area in 2010 (by 1.3% compared to the decline
by 3.8% in the previous year), in 2011 it slowed down to 0.5% (according to the European Commission).
Among the states in this group that are of greatest significance to Poland, the most relevant decrease in
internal demand was recorded in Italy (decrease of 0.9%) and Slovakia (decrease of 1.5%). Compared
to the whole euro area, the demand in Germany, i.e. the exports market which is of greatest significance
to Poland, France and the Netherlands was relatively positive and increased by 2.5%, 1.6% and 0.7%,
respectively.
101
MINISTRY OF ECONOMY
The economic situation on the major markets systematically deteriorated, which affected the dynamics
of Polish exports to these markets and the dynamics of exports as such in subsequent periods of 2011.
The exports growth rate (in EUR) dropped from 21.5% in 1Q11 to 8.3% in 4Q11. This was followed by a
slowdown in the growth rate of imports (from 22.8% in 1Q11 to 4.8% in 4Q11), which again confirmed
the anti-imports impact of the economic downturn on the Polish trade in commodities.
Despite a clear slowdown in Polish trade in commodities in the 2nd half of 2011, total 2011 exports
increased by 13.6%, i.e. by about EUR 16.3 billion, to EUR 136.7 billion, which is more than 3 pp faster
than expected at the beginning of 2011. At the same time the level of exports reached was by 17.6%
higher (i.e. by EUR 20.5 billion) than in 2008, i.e. prior to the crisis.
Imports reached EUR 152.6 billion, i.e. it was 13.7% higher than in 2010 and by 7.2% higher (i.e. by
EUR 10.2 billion) than in the pre-crisis year.
In consequence, the deficit in trade in commodities in 2011 amounted to EUR 15.9 billion and was
almost EUR 2.1 billion higher than in the previous year. It should be noted that the record-high trade
deficit observed in 2008 (EUR 26.2 billion) was reduced in the last three years by EUR 10.3 billion, i.e.
by over 40%.
Table 38 Poland’s commodity trade in January 2011 – June 2012
Period
in EUR mln
Dynamics
the same period in prev. year
=100
Exports
Imports
Balance
Exports
Imports
January 2011
10,061
11,100
-1,039
122.6
126.6
February
10,932
12,149
-1,217
121.0
123.2
March
12,317
13,530
-1,213
120.9
119.5
1st Q
33,311
36,780
-3,469
121.5
122.8
April
10,961
12,537
-1,576
110.4
117.0
May
11,712
13,122
-1,410
113.5
114.8
June
11,544
13,179
-1,634
109.6
114.8
2nd Q
34,217
38,837
-4,620
111.2
115.5
1st half of the year
67,528
75,617
-8,089
116.0
118.9
July
10,664
12,292
-1,628
106.6
109.8
August
11,483
12,903
-1,420
124.1
120.3
September
12,698
13,537
-840
113.2
110.8
3rd Q
34,844
38,732
-3,888
114.3
113.5
October
11,859
12,981
-1,122
106.4
104.9
November
12,028
13,250
-1,222
112.2
106.2
December
10,436
11,988
-1,552
106.2
103.1
4th Q
34,322
38,219
-3,897
108.3
104.8
Year 2011
136,694
152,568
-15,875
113.6
113.7
January 2012
10,827
11,908
-1,081
107.6
107.3
February
10,899
12,141
-1,242
99.7
99.9
March
12,191
13,083
-892
99.0
96.7
1st Q
33,917
37,132
-3,215
101.8
101.0
April
11,489
12,232
-743
104.8
97.6
May
11,827
13,109
-1,282
101.0
99.9
June
11,065
11,680
-615
95.9
88.6
2nd Q
34,382
37,021
-2,639
100.5
95.3
1st half of the year
68,299
74,153
-5,854
101.1
98.1
Source: Strategy and Analyses Department, Ministry of Economy based on Central Statistical Office data.
102
mln EUR
Chart 22 Monthly commodity trade balance in January 2011 – June 2012
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
-2,000
I II
2011
III
IV
V
VI VII VIII IX
exports
X
imports
XI XII
I II
2012
III
IV
V
VI
balance
Chart 23 Monthly dynamics of exports and imports in January 2011 – June 2012
%
130.0
120.0
110.0
100.0
90.0
80.0
I II
2011
III
IV
V
VI VII VIII IX
exports
X
XI XII
I II
2012
III
IV
V
VI
imports
The fact that the growth of exports was faster than initially expected mainly resulted from the relatively
strong condition of German economy compared to the whole euro area, and its resistance to
disturbances caused by sovereign debt crisis in Greece and several other economies of the area. The
fact that the annual growth rate of Polish exports to Germany in 2011 reached 13.5% and thus turned
out to be close to the average growth rate of total exports may also indicate that over years Polish
exporters have established their position on that market. Therefore, as in the period 2001–2005, the
slowdown of internal demand in Germany forced local buyers to focus on Polish goods, which are
cheaper than the Western ones but of comparable quality, which resulted in Polish exports escaping a
more serious slowdown.
103
MINISTRY OF ECONOMY
6.2. Geographical structure of foreign trade turnover
Despite serious disturbances on the markets of Poland’s major trade partners, i.e. the euro area, the
relatively high increase in commodity trade in 2011 was mainly due to the high dynamics of trade with
developing and less developed countries. As in 2010, it was much higher than the average.
Following a rise in Polish exports to economically developed countries of 21.5% recorded in 2010, in
2011 it slowed down to 12.7%. The imports from these countries increased at a slightly faster rate, i.e.
by 12.9% compared to the rise by 21.4% in the previous year. In 2011, an improvement of the stability
of trade with this group of states was observed – the exchange surplus rose by almost EUR 1.4 billion to
EUR 13.4 billion.
The growth of exports to the European Union in 2011 was slightly slower than to the economically
developed countries, i.e. it increased by 11.9%, which is 2.1 percentage points slower than the imports
from these markets. The surplus in exchange with the EU amounted to EUR 15.6 billion, i.e. it increased
only by about EUR 140 million. Among markets belonging to this group, there was an improvement of
trade with the EU markets outside of the euro area, where – as a result of relatively fast growth in
exports (by 0.8 percentage points faster than in the case of imports) – the surplus rose by almost EUR
1.9 billion to EUR 12.6 billion. Within this group of markets, the most significant positive changes
occurred in the turnover with:
− the UK, where as a result of 16.5% growth in exports, i.e. more than 7 percentage points faster than
in the case of imports, the surplus rose by more than EUR 0.9 billion to EUR 4.8 billion,
− the Czech Republic where the growth in exports (of 18.5%) was by 6.5 percentage points faster
than the growth in imports, and, consequently, the exchange balance improved by more than EUR
0.7 billion to almost EUR 2.9 billion,
− Romania, where as a result of almost three times faster growth of exports (of 27.6%) compared to
the growth of imports (of 10.3%) the balance of turnover improved by about EUR 360 million to
nearly EUR 1.1 billion.
This improvement in the balance of exchange with these markets managed to compensate for the
negative changes in the stability of trade with the euro area countries, where, as a result of the fact that
the growth in imports (of 3.6 percentage points) was faster than that of exports, the surplus fell by EUR
1.7 billion to EUR 3 billion. As for this group of markets, there was a deterioration of the balance of
exchange with most of them, including with Germany, which is Poland's major trade partner, where as a
result of relatively fast growth in imports from this market (of 15.9%, or 2.4 percentage points) the
turnover surplus decreased by over EUR 0.4 billion to EUR 1.6 billion, with Italy (of more than EUR 0.4
billion to more than EUR 0.9 billion), and France (of almost EUR 0.4 billion to EUR 2 billion).
Among 15 countries which are the largest recipients of Polish exports, there are as many as 12 EU
Member States. The corresponding number for imports is 11.
The biggest growth in exports in absolute terms occurred with the following EU states:
− Germany
- by EUR 4.2 billion (13.5%),
− the Czech Republic
− the United Kingdom
− the Netherlands
- by almost EUR 0.7 billion (13.1%),
− Lithuania
- by more than EUR 0.5 billion (37.8%).
104
As regards individual commodities, the biggest growth in exports to the EU was recorded in the
following categories:
− chemical industry products
- by about EUR 2.5 billion (21.5%),
− metallurgical products
− electric machinery products
− mineral products
− agricultural and food products
- by EUR 1.2 billion (11.3%).
Particularly positive changes in the exports to non-EU economically developed countries occurred in the
case of the EFTA countries, where, following a slight rise in 2010 (by 4.6%), in 2011 it increased by as
much as 41% to amount close to EUR 4 billion. This mainly resulted from a sudden increase in the
growth rate of exports to Norway – by approx. 54%. Exports to other developed countries (outside the
EU and EFTA) increased by 13% (to EUR 4.7 billion), including to the United States – by 21.7%, and to
Japan – by 17.9%.
The growth of imports from these countries (by 4.5%) was definitely slower. However, the imports from
the EFTA countries increased by 14.5%, and the imports from non-EU and non-EFTA countries
remained at the level reached in the previous year (a fall of 0.1%). Consequently, the balance of
exchange improved by EUR 1.2 billion, including with EFTA by nearly EUR 0.7 billion, and with the other
countries by more than EUR 0.5 billion. This was mainly influenced by the improvement in the balance
of exchange with the following countries:
− Norway, where due to the fact that the growth rate of imports was disproportionately (almost
three times) slower than that of exports, the trade deficit amounting to EUR 240 million recorded
in the previous year turned into a surplus of approx. EUR 340 million,
− US, where the deficit was reduced by more than EUR 0.4 billion to nearly EUR 0.8 billion,
− Switzerland, where the negative balance was reduced by EUR 125 million to EUR 8 million, and
− Japan, where the deficit fell by about EUR 120 million to under EUR 2.3 billion.
The growth rate of trade with developing and less developed countries was considerably faster than that
with economically developed countries. In 2011, exports to the former countries reached EUR 21.4
billion, which was 18% higher than in the previous year, while imports increased by 15.3% (to EUR 50.7
billion). Consequently, the deficit in trade with these countries amounted to EUR 29.3 billion and was
higher than in the previous year by EUR 3.4 billion and almost twice as big as the overall Polish trade
deficit.
The deterioration in the balance of exchange was determined by the result of the exchange with the CIS
markets, where due to the dynamic increase in imports (of 35.1%, i.e. almost twice as fast as that of
exports) the deficit of EUR 6.3 billion recorded in the previous year increased to EUR 10.2 billion. Here,
the decisive factor was the noticeable growth in imports from three crucial countries in this group,
namely:
− Russia – imports from this country increased by 33.9%, i.e. by 11.9 percentage points faster
than exports, and the trade deficit grew by as much as EUR 3.5 billion to a record-high level of
EUR 12.2 billion, which for the first time since 2006 was larger than the deficit in the trade with
China. It should be noted that such a dynamic growth of imports from Russia is generated by the
rise in prices of energy raw materials (oil and gas), i.e. products that traditionally dominate the
Polish imports from this market.
− Ukraine – of 45.3%, compared to the growth in exports of 13.3%,
− Belarus – of 53.9%, compared to the growth in exports of 9.6%.
105
MINISTRY OF ECONOMY
However, the situation was different in the case of trade with other less developed countries, where the
dynamic growth in exports (of 18.9%, i.e. five times faster than that of imports) translated into a deficit
reduction of EUR 0.5 billion to about EUR 19.1 billion. Such positive changes in exchange can be
brought back to the result of exchange with:
− Turkey, where a slow growth rate of imports (by 4.4%) compared to six times faster growth rate
of exports translated into a growth in surplus of more than EUR 0.4 billion to EUR 0.7 billion, and
− Republic of Korea, where due to the decrease in imports of about 9% compared to the increase
in exports of nearly 44%, a deficit reduction of about EUR 420 million to about EUR 3.1 billion
was recorded.
On the other hand, the growth rate of exports to China increased relatively slowly (by 9.6%), although it
was twice as fast as that of imports, which increased by 5% (this was determined by the fall in imports of
machines and electrical appliances– boilers, machines and mechanical appliances – 3% each, which
are the key goods imported from this market). Despite the disproportionately faster growth in exports to
this market than in imports from this market, the deficit in the exchange of goods with China grew by
EUR 0.5 billion to nearly EUR 12 billion, which resulted from the fact that imports were as usual
definitely (about ten times) bigger, in terms of value, than exports.
Chart 24 Share of particular markets groups in Polish exports in 2011
Other developing
countries
CIS countries 7.2%
8.5%
Other developed
countries
6.3%
European Union
78.0%
106
Table 39 Changes in the geographical structure of Polish trade (EUR mln)
2011
Poland overall
prev. year = 100
Developed
countries
prev. year = 100
share
including:
EU
prev. year = 100
share
including:
Germany
prev. year = 100
share
UK
prev. year = 100
share
Czech Rep.
prev. year = 100
share
France
prev. year = 100
share
Italy
prev. year = 100
share
Other
developed
countries
prev. year = 100
share
including:
USA
prev. year = 100
share
EFTA
prev. year = 100
share
Other countries
excl. developed
countries
prev. year = 100
share
including:
CIS countries
prev. year = 100
share
including:
Russia
prev. year = 100
share
Other countries
prev. year = 100
share
including:
China
prev. year = 100
share
Exports
Imports
136,694
113.6
152,568
113.7
115,254
101,868
112.7
2010
Exports
Imports
Balance
-15,875
120,373
122.6
134,188
12.,8
-13,815
13,387
102,231
90,209
12,022
13,023
11,659
1,365
112.9
121.5
121.4
84.3
66.8
84.9
67.2
106,620
111.9
91,043
114.0
95,286
121.8
79,849
120.0
15,438
11,334
11,194
140
78.0
59.7
79.2
59.5
35,664
113.5
26.1
8,805
116.5
6.4
8,534
118.5
6.2
8,371
102.6
6.1
7,294
102.1
5.3
34,042
115.9
22.3
4,006
109.2
2.6
5,682
112.0
3.7
6,374
109.9
4.2
8,235
107.7
5.4
1,622
31,427
122.4
26.1
7,558
120.0
6.3
7,202
125.4
6.0
8,156
119.5
6.8
7,141
106.2
5.9
29,362
122.1
21.9
3,669
115.5
2.7
5,074
130.7
3.8
5,797
117.0
4.3
7,646
104.2
5.7
2,065
4,237
4,680
-442
3,889
1,248
337
910
2,128
1,331
608
724
2,358
215
576
-361
-505
153
588
-436
8,634
10,825
-2,191
6,945
10,360
-3,415
1,689
464
1,225
124.3
104.5
118.3
133.1
6.3
7.1
5.8
7.7
2,665
121.7
1.9
3,976
140.9
2.9
3,454
101.8
2.3
3,709
114.5
2.4
-789
2,190
123.7
1.8
2,822
104.6
2.3
3,394
136.7
2.5
3.241
133.5
2.4
-1,203
475
61
414
-419
1,154
468
686
21,439
50,701
-29,261
18,142
43,979
-25,838
3,298
6,721
-3,424
118.2
115.3
128.8
132.4
15.7
33.2
15.1
32.8
11,635
117.6
21,838
135.1
-10,203
9,894
131.9
16,164
146.6
-6,270
1,741
5,673
-3,932
8.2
12.0
-12,242
5,031
139.9
4.2
8,248
125.3
13,730
149.1
10.2
27,815
125.4
-8,699
1,107
4,650
-3,543
-19,567
1,556
1,048
509
-11,386
118
630
-512
8.5
14.3
6,139
122.0
4.5
9,805
118.9
18,380
133.9
12.0
28,863
103.8
7.2
18.9
1,347
109.6
1.0
13,245
105.0
8.7
Balance
Changes 2011/2010
Balance
Exports
Imports
impr. (+)
deter. (-)
16,321
18,380
-2,059
15,577
4,799
2,852
1,997
-941
267
-19,059
-11,899
6.9
20.7
1,229
117.0
1.0
12.615
126,4
9,4
107
MINISTRY OF ECONOMY
6.3. Changes in commodity structure of foreign trade
In 2011, a faster than average growth rate of exports was recorded in the following product groups:
− mineral products – an increase of 33.8% (to EUR 6.9 billion),
− ceramic products – of 30% (to EUR 3.9 billion),
− chemical industry products – of 20.2% (to EUR 18.9 billion),
− metallurgical products – of 20.2% (to EUR 16.2 billion).
Although the share of mineral products (5%) and ceramic products (2.8%) of total Polish exports was
relatively small, the chemical products and metallurgical products accounted for a significant part of
Polish exports – 13.8% and 11.9%, respectively.
As in exports, the most significant growth in imports was recorded in the case of mineral products
(accounting for 13.6% of total imports to Poland) – of 33.3%, and this group also saw the greatest rise in
the value of imports (i.e. of almost EUR 5.2 billion to EUR 20.7 billion). As already mentioned above, a
clear increase in the growth rate of imports of mineral products mainly results from a dynamic rise in
global prices of energy raw materials (oil and gas). The faster rise in the value of the imports of mineral
products contributed to the fact that the deficit in trade with this group grew by more than EUR 3.4 billion
compared to 2010, to EUR 13.8 billion.
The relatively rapid growth in exports of chemical products in 2011 can be brought back to the fast
growth rate of exports of:
− rubber and rubber products, whose exports rose by 29.5% reaching the level of EUR 3.7 billion,
and their share in the total Polish exports amounted to 2.7%,
− organic chemicals, whose exports rose by 46.4% (to more than EUR 1.4 billion), and their share
in the exports from Poland amounted to 1%, and
− plastic products and items, whose exports amounted to almost EUR 6 billion, which is 18.8%
more compared to the previous year, and their share amounted to 4.4%.
In contrast, exports of pharmaceutical products fell by 0.6% to nearly EUR 1.7 billion (accounting for
1.2% of total exports).
On the other hand, the dynamics of imports of chemical industry products (accounting for 17.5% of the
total imports) was bigger than the average – an increase of 14.6% (to EUR 26.7 billion). Compared to
2010, the recorded deficit in trade in these goods was slightly larger, reaching the level of approx. EUR
7.8 billion.
In 2011, exports of metallurgical products increased faster than the average, which mainly resulted from
the dynamic growth rate of exports of the main goods in this group of products, namely of:
− cast-iron and steel products, whose exports rose by 22.5% (to EUR 4.7 billion) and amounted to
3.5% of the total exports, and
− iron cast-iron and steel, whose exports rose by 35.2% (to EUR 3.9 billion), and whose share
amounted to 2.9%.
In 2011, the growth rate of exports of copper and copper products for the whole group was slower than
average – it rose by 7.9% (to almost EUR 3.6 billion), amounting to 2.6% of the total exports.
In 2011, the growth rate of imports of metallurgical products (amounting to 10.9% of the total imports)
was slower than that of exports by almost 1 percentage point, which slightly reduced the trade deficit by
about EUR 40 million (to about EUR 0.4 billion).
108
The growth in exports of electric machinery products, which dominate Polish trade with foreign
countries, turned out to be the biggest in absolute terms (an increase of EUR 3.7 billion to EUR 55.4
billion). However, taking into account the growth rate, it was the slowest (7.5%, which is 6.1 percentage
points slower than average). Consequently, their share dropped from 42.8% in 2010 to 40.5% in 2011.
The slowdown in exports of this group was largely determined by the decrease in exports of machines
and electrical appliances of 3.6%, i.e. of approx. EUR 0.6 billion to about EUR 15.4 billion.
The exports of vehicles other than railway or tramway rolling-stock, and parts and accessories thereof,
constituting the largest share in electric machinery products (i.e. 12.6% of the total exports in 2011),
rose by 10.1% (i.e. by about EUR 1.6 billion to nearly EUR 17.3 billion). In contrast, the exports of
boilers, machines and mechanical appliances, with a share of 12.3%, rose by 8.8% (i.e. by almost EUR
1.4 billion to EUR 16.8 billion).
The fastest growth rate in this group of products was recorded in the case of exports of:
− ships, boats and floating structures – an increase of 47.3% to EUR 3.6 billion, with a share in the
total exports of 2.6%,
− optical, photographic, measuring and medical instruments and apparatus, and parts thereof – an
increase of 24.4% (to almost EUR 1.4 billion), with a share in the total exports of 1%.
As in the case of exports, the slowest growth rate of imports among all groups of products was recorded
for electric machinery products. Consequently, the share of these products fell by 2.9 percentage points
to 35%. The slow growth rate of imports mainly resulted from the decrease in imports of machines and
electrical appliances. On the other hand, the growth rate of imports of vehicles other than railway or
tramway rolling-stock, and parts and accessories thereof was faster than the average for the group of
electric machinery products – an increase of 10.6%.
The slower growth rate of imports of electric machinery products compared with exports thereof in 2011
determined an increase in the surplus of exchange of almost EUR 1.3 billion to more than EUR 1.9
billion.
The dynamics of exports of agricultural and food products also turned out to be relatively high, though
slightly lower than the average (an increase of 12.7% to about EUR 15.2 billion), particularly in the case
of meat and products of animal origin (by 14.8% to EUR 5.2 billion) and prepared foodstuffs (by 13.4%
to over EUR 7 billion). In 2011, food products accounted for 11.1% of the total Polish exports.
On the other side, imports of agricultural and food products (8.3% of the total imports) grew faster than
average – by 15.6% to EUR 12.6 billion. In this group of products a high growth rate was recorded for
imports of products of plant origin (2.3% of the total imports) – an increase of 20.7% to over EUR 3.5
billion. The surplus in trade in agricultural and food products amounting to EUR 2.6 billion in 2011
increased slightly compared to the level reached in the previous year.
Among 50 products (aggregated on the 4-digit CN code level) which dominate the Polish exports and in
2011 amounted to 52.9% of its overall volume, the leading positions, as was the case in the previous
years, were occupied by cars, car parts and accessories. However, their share of total exports (9.8%)
was slightly smaller than in 2010 (10.5%).
In 2011, 19 products generated an exports value of over EUR 1 billion. This group of products mainly
consisted of highly processed products, including – apart from cars and parts thereof – means of
transportation, combustion engines, TV and radio receivers, sound and video capturing devices, as well
as furniture, drugs and tires.
109
MINISTRY OF ECONOMY
Table 40 Changes in the commodity structure of the Polish foreign trade in 2011, EUR mln
Specification
I
II
III
IV
(I-IV)
(V)
VI
VII
(VI-VII)
(VIII)
IX
X
(IX-X)
XI
XII
(XI-XII)
XIII
XIV
(XIIIXIV)
(XV)
XVI
XVII
XVIII
(XVIXVIII)
XIX
XX
XXI
XXII
TOTAL
Live animals and
animal products
Plant products
Fats and oils
Prepared foodstuffs
Agricultural and food
products
Mineral products
Chemical industry
products
Plastic and rubber
products
Chemical industry
products
Leather and leather
products
Wood and wood
products
Wood pulp, paper and
paperboard
Wood and paper
industry products
Textiles and textile
articles
Footwear, headgear,
umbrellas
Light industry
products
Articles of stone,
plaster and cement
Pearls, precious
metals, jewellery
Ceramic products
Metallurgical products
Mechanical appliances
and electrical
equipment
Vehicles, aircrafts and
vessels
Optical instruments
and apparatus
Electric machinery
products
Arms and ammunition
Miscellaneous
Works of art
Other
Unknown or wrong CN
Miscellaneous and
other products
2010
2009
Changes 2011/2010
Exports
Imports
Balance
Exports
Exports
Imports
Balance
Imports
Exports
136,694
152,568
-15,875
120,373
134,188
-13,815
16,321
18,380
-2,059
5,182
3,287
1,895
4,514
2,967
1,547
668
320
348
2,623
372
7,051
3,519
767
5,056
-895
-396
1,995
2,451
323
6,220
2,914
501
4,539
-464
-178
1,681
173
49
831
604
266
517
-431
-217
314
15,228
12,628
2,599
13,507
10,921
2,586
1,720
1,707
13
6,896
20,709
-13,814
5,154
15,533
-10,380
1,742
5,176
-3,434
9,260
14,934
-5,674
7,865
13,484
-5,620
1,395
1,449
-54
9,640
11,784
-2,143
7,860
9,826
-1,967
1,781
1,958
-177
18,900
26,718
-7,817
15,724
23,311
-7,586
3,176
3,407
-231
540
860
-319
485
734
-249
56
126
-70
2,684
1,291
1,394
2,503
1,105
1,398
181
185
-4
4,214
4,122
91
3,750
3,761
-11
463
361
102
6,898
5,413
1,485
6,253
4,866
1,387
644
546
98
4,375
6,592
-2,217
3,954
6,004
-2,049
421
588
-167
564
958
-394
484
827
-343
80
131
-51
4,939
7,549
-2,610
4,438
6,830
-2,392
501
719
-218
2,578
1,888
690
2,249
1,741
508
328
147
181
1,304
318
986
737
266
471
566
52
514
3,881
2,206
1,675
2,987
2,007
980
895
199
696
16,224
16,631
-407
13,492
13,937
-445
2,732
2,694
38
32,144
33,708
-1,563
31,366
32,756
-1,390
778
952
-174
21,825
15,215
6,610
19,006
13,842
5,163
2,819
1,373
1,446
1,413
4,529
-3,116
1,142
4,258
-3,116
271
271
0
55,382
53,452
1,930
51,514
50,856
658
3,868
2,596
1,272
18
7,682
21
85
0
108
2,576
16
3,689
13
-89
5,106
5
-3,605
-13
16
6,735
21
47
0
77
2,276
8
2,772
58
-61
4,459
13
-2,726
-58
2
947
0
38
0
31
300
7
917
-45
-29
647
-8
-879
45
7,806
6,402
1,404
6,819
5,191
1,627
987
1,210
-224
In 2011, trade deficit in commodities reached almost EUR 15.9 billion and increased by nearly EUR 2.1
billion compared to the previous year. The most significant increase in trade deficit was recorded in the
exchange of mineral products – of more than EUR 3.4 billion to EUR 13.8 billion, whereas the most
favourable situation, in terms of trade sustainability, was in the trade of electric machinery products, with
a surplus of EUR 1.9 billion, which was EUR 1.3 billion more than in 2010.
110
It should be emphasised that in the period 2008–2011 it was the trade in electric machinery products
that saw the largest improvement in the balance of exchange. Here, the 2008 deficit of almost EUR 4.8
billion was turned into a surplus of EUR 1.9 billion. This positive change of balance (by EUR 6.7 billion)
was the main factor that affected the improvement in the overall Polish trade sustainability, where at that
time a deficit reduction of EUR 10.3 billion was noted.
Chart 25 Commodity structure of Polish exports in 2011, compared to 2006 and 2010
Electric and machinary goods
Goods of chemical industry
Metalurgical goods
Agricultural and food products
Miscellaneous and unclassified goods
Goods of wood and paper industry
Mineral products
2006
Goods of light industry
2010
2011
Ceramic goods
Leather
0
5
10
15
20
25
30
35
40
45 %
Chart 26 Commodity structure of Polish imports in 2011, compared to 2006 and 2010
Mineral products
Metalurgical goods
2006
2010
2011
Ceramic goods
Leather
0
5
10
15
20
25
30
35
40
45 %
111
MINISTRY OF ECONOMY
Chart 27 Commodity structure of foreign exchange balance in 2011, as compared to 2006 and 2010
Mineral products
2006
2010
Metalurgical goods
Leather
2011
Ceramic goods
-14
-12
-10
-8
-6
-4
-2
0
2
4
bn EUR
6.4. Foreign trade in the first half of 2012
A slowdown in exports that began in the 2nd half of 2011, followed by even greater slowdown in imports,
continued in the 1st half of 2012. Compared to the corresponding period in the previous year, exports
rose by 1.1% to EUR 68.3 billion, whereas imports amounted to nearly EUR 74.2 billion and was 1.9%
lower than in the previous year. Consequently, the deficit in turnover of goods was reduced by more
than EUR 2.2 billion to just under EUR 5.9 billion.
Following an increase in exports to developed markets (of 12.7%) recorded in 2011, the first half of
2012 brought its fall of 1.6% (to EUR 56.6 billion). At the same time, imports from these markets
decreased faster than exports (by 7.3% to EUR 47.5 billion), which translated into an increase in surplus
reached in trade with this group of countries of about EUR 2.8 billion to over EUR 9.1 billion.
Exports to the markets of the euro area decreased by 2.7% to EUR 36.1 billion. An increase in exports
to other EU Member States by 1.9% (to EUR 16.3 billion) did not manage to compensate this decline,
and consequently exports to the EU markets decreased by 1.3% to about EUR 52.4 billion. A more
rapid drop in imports from the EU countries (of 6.9%) led to a rise in the surplus in turnover with this
group of markets of EUR 2.5 billion to EUR 10 billion.
In the 1st half of 2012, the most significant increases in exports to EU countries involved the markets of
the Baltic States, including Estonia – of 17.8%, Latvia – 17% and Lithuania – 14.4%, which mainly
resulted from an increased growth rate of exports of mineral products to these markets. Compared to
the EU as a whole, a relatively positive dynamics of exports occurred in exports to the markets of the
UK (an increase of 4.4% to EUR 4.5 billion), the Netherlands (of 4.3% to EUR 3 billion), Slovakia (of
3.9% to nearly EUR 1.7 billion) and Romania (by 7.1% to EUR 1 billion).
112
A fall in exports to other developed countries proved to be worse than that in exports to the EU markets.
On average, for the whole group of these countries the decrease in exports amounted to 4.7%,
including exports to Norway – 21.4%, and to the US – 7.2%. The dynamic growth in exports to Canada
(of 29.3%) and Israel (of 18.4%) positively stood out against all the non-EU developed markets. On the
other hand, after the 1st half of 2012 imports from this group of markets amounted to EUR 5 billion and
was almost by 10% lower than in the previous year, while the trade deficit was reduced to about EUR
350 million.
In contrast to the fall in exports to developed markets, there was a rapid growth in exports to less
developed and developing markets (i.e. of 16.7%), including to CIS markets – of 17.9% (to EUR 6.4
billion) and other developing markets – of 15.3% (to EUR 5.3 billion). Among markets from this group, it
is worth mentioning Russia, with a 22.8% increase in exports to EUR 3.5 billion (including an increase in
exports of electric machinery products of nearly 20% and in agricultural and food products of 26%), and
Ukraine, where exports rose by 20.7% to EUR 1.8 billion.
Imports from less developed and developing markets, on the other hand, increased by 9.2% (to nearly
EUR 26.7 billion) in the period between January and June 2012. The trade deficit with this group of
countries amounted to EUR 15 billion EUR and grew by about EUR 580 million. The relatively rapid
increase in imports from the group of developing markets was determined by the increased growth rate
of imports from CIS (an increase of 22.6%). Among the most important CIS markets, the most rapid
growth of imports, and thus the most serious deterioration in the balance of exchange, involved Russia;
imports from Russia rose by 27.2% (to EUR 10.8 billion), including an increase in imports of mineral
products of more than 31% to EUR 7.9 billion, and the negative balance of turnover with this market
grew by almost EUR 1.7 billion to EUR 7.3 billion.
However, imports from other developing markets fell by 0.3% at that time (to about EUR 14.2 billion),
which influenced a reduction in trade deficit (by about EUR 740 million). In the 1st half of 2012, imports
from the most important market in this group – the Chinese market – grew by 2.4% (to nearly EUR 6.5
billion). In that period, the Polish exports to this market rose by 12% (to approx. EUR 620 million), while
the trade deficit slightly increased compared to the level reached in the previous year (by about EUR 70
million to EUR 5.9 billion).
If broken down by commodities, the most significant growth rate in the 1st half of 2012 was reached in
exports of agricultural and food products (10.7%), ceramic products (9.8%) and chemical industry
products (4.2%).
Although the exports of ceramic products grew by 9.8%, in absolute terms the increase totalled EUR
185 million (to about EUR 2.1 billion) and their share in total exports amounted to 3%.
In the 1st half of 2012, agricultural and food products had a 11.5% share of Polish exports (i.e. more
than EUR 7.8 billion). The trade in these goods was positive in terms of trade sustainability – although
their imports increased by 2.4%, a relatively rapid growth of their exports (almost ten times higher than
of exports as a whole) allowed the surplus to rise by EUR 0.6 billion to EUR 1.5 billion.
On the other hand, between January and June 2012 the turnover in the group of electric machinery
products, which dominates the Polish trade with foreign countries (39.4% of total exports and 34.2% of
total imports), fell by 3.2% in the case of exports (to nearly EUR 26.9 billion) and by 4.1% in the case of
imports (to EUR 25.4 billion). The fall in their exports was mainly determined by the decrease in exports
of motor vehicles and parts and accessories thereof by 9.3% (to about EUR 8.3 billion).
113
MINISTRY OF ECONOMY
Table 41 Changes in the commodity structure of the Polish foreign trade in 1st half of year 2012, EUR mln
Specification
I
II
III
IV
(I-IV)
(V)
VI
VII
(VI-VII)
(VIII)
IX
X
(IX-X)
XI
XII
(XI-XII)
XIII
XIV
(XIIIXIV)
(XV)
XVI
XVII
XVIII
(XVIXVIII)
XIX
XX
XXI
XXII
TOTAL
Live animals and
animal products
Plant products
Fats and oils
Prepared foodstuffs
Agricultural and
food products
Mineral products
Chemical industry
products
Plastic and rubber
products
Chemical industry
products
Leather and leather
products
Wood and wood
products
Wood pulp, paper
and paperboard
Wood and paper
industry products
Textiles and textile
articles
Footwear,
headgear,
umbrellas
Light industry
products
Articles of stone,
plaster and cement
Pearls, precious
metals, jewellery
Ceramic products
Metallurgical
products
Mechanical
appliances and
electrical
equipment
Vehicles, aircrafts
and vessels
Optical instruments
and apparatus
Electric machinery
products
Arms and
ammunition
Miscellaneous
Works of art
Other
Unknown or wrong
CN
Miscellaneous and
other products
Exports
1st half of 2012
Imports
Balance
Exports
1st half of 2011
Imports
Balance
Exports
Changes
Imports
Balance
68,299
74,153
-5,854
67,528
75,617
-8,089
771
-1,464
2,235
2,661
1,354
144
3,691
1,606
1,848
382
2,518
1,055
-494
-239
1,173
2,455
1,207
161
3,266
1,570
1,853
358
2,421
886
-647
-198
844
206
147
-17
425
36
-5
24
97
170
152
-41
328
7,849
3,472
6,355
10,502
1,495
-7,030
7,089
3,438
6,203
9,838
886
-6,400
761
35
152
665
609
-630
4,783
7,150
-2,367
4,510
7,670
-3,160
272
-520
793
4,803
5,705
-902
4,687
5,939
-1,253
117
-234
350
9,586
12,856
-3,270
9,197
13,610
-4,413
389
-754
1,143
304
388
-84
286
415
-129
19
-26
45
1,398
578
819
1,414
652
762
-16
-73
58
1,780
1,890
-111
2,037
2,044
-7
-258
-154
-104
3,177
2,469
709
3,451
2,696
755
-274
-227
-47
2,154
3,055
-900
2,183
3,230
-1,047
-29
-176
147
303
466
-163
276
448
-172
27
17
10
2,457
3,520
-1,063
2,459
3,678
-1,219
-2
-158
156
1,304
816
488
1,254
904
351
49
-88
137
770
177
593
634
156
479
136
22
115
2,074
993
1,081
1,889
1,059
829
185
-66
252
8,218
8,031
187
8,126
8,624
-498
92
-593
684
16,027
16,184
-157
15,607
16,428
-820
420
-243
664
10,119
7,393
2,726
11,455
7,889
3,566
-1,336
-497
-839
728
1,811
-1,083
688
2,149
-1,461
40
-338
378
26,875
25,388
1,487
27,750
26,466
1,285
-876
-1,078
202
8
4,207
13
58
30
1,260
5
2,350
-22
2,947
8
-2,292
9
3,808
8
18
41
1,216
4
1,760
-32
2,593
3
-1,741
-1
398
5
40
-10
44
1
590
10
354
5
-550
0
7
-7
0
9
-9
0
-2
2
4,286
3,652
635
3,843
3,029
814
443
623
-180
114
With its 14% share chemical industry products are the second most valuable group of goods in Polish
exports. Their exports rose by 4.2% reaching the level of EUR 9.6 billion. In contrast, the imports of
chemical products decreased at that time by 5.5% (to less than EUR 12.9 billion). The fall in the value of
imports of chemical products with a simultaneous rise in their exports translated into the drop in the
trade deficit associated with this group by over EUR 1.1 billion to just under EUR 3.3 billion.
In the 1st half of 2012, imports of mineral products increased by 6.8% reaching the level of EUR 10.5
billion, and the trade deficit associated with this group grew by about EUR 630 million to EUR 7 billion.
6.5. Exchange rate and its influence on trade in commodities
In 2011, Polish foreign trade was carried out in the conditions of deteriorating global economic situation,
in particular on markets of the main trade partners of Poland, namely Italy, France and Spain. This
resulted in a slowdown in external demand of these markets, which for many years now has been one
of the main (in addition to the exchange rate) drivers of the growth of Polish exports and the overall
trade in commodities.
The negative impact of the economic downturn on the main markets of the euro area, particularly visible
in the 2nd half of 2011, was to a large extent alleviated by the increasing depreciation of zloty in relation
to euro in that period as the main settlement currency of Polish trade in commodities, which positively
affected exports. Following a period of relative stability or even certain strengthening of zloty against
euro, which lasted since the beginning of 2010 until mid-2011, in the 2nd half of 2011, and particularly in
4Q11, there was a significant strengthening of euro against zloty. EUR/PLN exchange rate (YoY)
increased in 3Q11 by 3.4% and in 4Q11 by 11.3%, whereas in the whole 2011 the common currency
strengthened by 3.1%.
Furthermore, among the parameters with a direct impact on the profitability of foreign trade, transaction
prices in exports and imports play an important role. Their changes depend on the changes of prices in
foreign currency and the nominal effective exchange rate – NEER (PLN exchange rate in relation to the
basket of major currencies, mainly EUR and USD). In 2011, the level of prices in foreign currency in
exports rose by 5%. A pro-exports change in the EUR exchange rate was slightly eliminated with the
weakening of the US dollar against zloty (by 1.7%), which translated into a NEER increase of 2%.
Consequently, following a slight increase in transaction prices in exports in 2010 (by 0.4%), in 2011 they
grew by 7.1%.
115
MINISTRY OF ECONOMY
Chart 28 Transaction prices, foreign currency prices and NEER changes in exports in 2000-2011
%
125
Transaction prices
Foreign currency prices
120
NEER - nominal effective exchange rate
115
110
105
100
95
90
85
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Source: Strategy and Analyses Department, Ministry of Economy based on CSO and NBP data.
116
7. INFLATION AND MONETARY POLICY
7.1. Prices
In terms of intensity and direction of price changes in Polish economy, the year 2010 was characterized
by a slowdown in the upward trend. In that period the CPI mid-annual index was 2.6%, exceeding the
inflation target set by NBP. At that time the higher prices of food products and energy carriers were the
main factors conducive to increasing inflation. Salary pressure, which was lower than in previous years,
due to relatively high unemployment rate coupled with employment rising slowly, was conducive to a
decrease of inflationary pressure.
In 2011, the price growth rate accelerated, due to which the mid-year consumer goods and prices
indicator was 4.3%. As in the previous year, the price growth in 2011 was determined mainly by
relatively high volatility of prices of food and energy carriers on international markets. The internal
inflation factor, whose impact was higher in the first half of the year, was mainly the increased
consumption demand of households – an effect of increasing employment, and the VAT rate increase
introduced on 1 January 2011.
Chart 29 Changes in the Consumer Price Index in 2006-2011
%
5
4.6
4.0
4
4.2
4.3
3.3
3.5
3.5
3.1
3
2.6
2.5
2
1.4
1
1.0
0
2006
2007
Year on year
2008
2009
2010
2011
XII to XII
A neutral monetary policy of the NBP maintained throughout 2010, reflected in the lack of changes of
the main interest rates, was followed by an evident increase in the price growth rate in 4Q10. As a
result, in January 2011, for the first time since 2009, interest rates were changed and raised by 0.25
percentage point. In total throughout 2011, reacting to the constant rise of CPI, MPC raised the main
interest rates of NBP four times. Despite such restrictive approach of the monetary policy, the rise in
prices at the end of the year, when comparing December 2011 to December 2010, amounted to 4.6%.
117
MINISTRY OF ECONOMY
In 2011, the inflation was shaped by many factors, having multidirectional influence37. Among them, the
following should be enumerated:
− considerable increase in prices of agricultural products on the global markets and in Poland in
the 2nd half of 2010 and in the first months of 2011, resulting from limited supply,
− considerable increase of fuel prices (oil and petrol) at the end of 2010 and in the 1st half of
2011,
− weakening of PLN against major currencies (EUR and USD) observed in the 2nd half 2011,
resulting from an increased risk aversion on global financial markets.
Consumer prices
7.1.1.
An average annual increase in prices of consumer goods and services in 2011 amounted to 4.3%, and
it was higher than provided for in the budget act (2.3%) as well as the inflation target of NBP (2.5%).
The price growth rate in each quarter of 2011 in YoY terms remained high, not exceeding the threshold
of 4.0% (3.8%) only in 1Q11. In the remaining quarters, compared to the analogous period of the
previous year, prices changed by 4.6%, 4.1% and 4.6%, respectively.
In the subsequent months of 2011 the annual CPI kept rising, reaching 5.0% in May. Additionally,
although at the beginning of the 2nd half of 2011 the dynamics of prices – in each month – slowed down,
there was a noticeable increase in inflationary pressure at the end of the year.
In the first months of 2012 the index of consumer goods and services prices fluctuated around 4.0%.
Chart 30 Consumer price growth rate in comparison to the same month of the previous year
5.0
% 5
4.3
4
4.5
4.8
4.2 4.1 4.3
4.3
4.6
4.1
3.9
4.3
4.3
3.9 4.0
3.6
3.6 3.6
3
2
1
0
I
II
III
IV
V
VI
VII
VIII
IX
X
XI
XII
I
2011
II
III
IV
V
VI
2012
The price growth in 2011 was determined mainly by external factors in the form of a relatively high
volatility of prices of food and energy carriers on international markets. Although the global growth rate
of raw material prices slowed down, in real terms they still remained above the 2010 baseline. The
internal macroeconomic situation in the country was not conducive to a decrease of inflationary
pressure as well. The dynamics of GDP growth, which was higher than initially expected, characterised
by increasing employment and the consumer demand remaining at a relatively high level, accounted for
an additional source of the reduction of purchasing power of money.
37
Report on state budget implementation in 2011, Ministry of Finance.
118
In 2011, the mid- annual index of consumer prices was shaped essentially by increasing prices of
goods and services related to living, prices of foodstuff and non-alcoholic drinks, as well as prices of
goods and services in the area of transport, which increased the index generally by 1.4 percentage
point, 1.31 percentage point and 0.71 percentage point, respectively. A decrease in price of clothes and
footwear and in prices related to communications decreased the index in total by 0.08 percentage point
and 0.04 percentage point, respectively.38
Table 42 CPI and core inflation in 2011 and in the subsequent months of 2012
Months
I
II
III
IV
CPI
A
B
C
D
3.6
3.1
2.5
1.6
3.0
3.6
3.2
2.5
1.7
3.2
4.3
4.0
2.7
2.0
3.4
4.5
4.3
2.9
2.1
3.6
V
2011
5.0
4.8
3.2
2.4
4.0
VI
VII
VIII
IX
X
XI
XII
4.2
4.0
3.2
2.4
3.8
4.1
3.7
3.3
2.4
4.0
4.3
3.9
3.6
2.7
4.2
3.9
3.5
3.5
2.6
4.2
4.3
3.9
3.7
2.8
4.3
4.8
4.4
4.0
3.0
4.6
4.6
4.3
4.1
3.1
4.7
I
2012
4.1
3.7
3.4
2.5
4.3
II
III
IV
V
VI
4.3
4.0
3.6
2.6
4.3
3.9
3.5
3.4
2.4
4.1
4.0
3.5
3.6
2.7
4.2
3.6
3.0
3.3
2.3
3.9
4.3
3.8
3.3
2.3
4.0
A – core inflation excluding administered prices (according to the ECB definition they include the components of the CPI the
final prices of which are fully or to a large extent determined by government units (central, regional, local) and regulating
units);
B – core inflation excluding most changeable prices (prices of goods and services which are particularly susceptible to
different demand and supply shocks and/or vary seasonally by nature);
C – core inflation excluding food and energy prices;
D – 15% trimmed mean (after applying a symmetrical cut by 15% on the left and on the right side of the distribution
curve of indices corresponding to the prices with highest and the lowest rate of change).
Source: National Bank of Poland.
Box 16 New measures of core inflation
From March 2009, the National Bank of Poland started to calculate and publish new measures of core inflation:
- core inflation excluding administered prices (excluding prices which are not determined by markets but are
subject to different forms of regulation, i.e. such goods and services whose final prices are fully or to a large
extent determined by central government and local government institutions and regulatory bodies);
- core inflation excluding the most volatile prices (excluding the effect of the most disturbed prices, i.e. prices of
such goods and services that are particularly susceptible to different types of demand and supply shocks and/or
are characterised by high seasonality changing over time, i.e. generally most food products (especially fresh and
low-processed fruit, vegetables and meat), energy products (fuels, gas, heating), Internet access services, state
administration and legal services);
- core inflation excluding the prices of food and energy (prices of commodities which are particularly susceptible
to internal and external supply shocks, i.e. prices of food, non-alcoholic beverages and energy);
- 15% trimmed mean.
In 2011 – YoY – the price of food rose by 5.6% on average, mainly of sugar, jam, chocolate and sugar
confectionery (14.3%) – caused by the rise in the prices of sugar of 48.2%, as well as bread and cereal
products (9.4%). An increase in prices of energy carriers (rise by 7.4%) was caused by a rise of prices
of heating (of 8.7%) and gas (of 8.3%). The dynamics of price of tobacco products remained high (9.0%
compared to 11.9% in 2010). The prices of clothes and footwear decreased (1.5%), as was the case
with prices of communication services (by 0.8%).
The analysis of the relation of CPI indicators with core inflation confirms the determining effect of the
prices of food and fuels on the price indicators in the economy in 2011 and in the first months of 2012. It
shows that in the period under analysis the core inflation excluding the prices of food and energy
differed significantly from the average prices of consumer commodities and services, which indicates a
high contribution of the excluded factor (here, the changes in the prices of food and energy) to the
aggregated outcome of CPI.
38
Information on social and economic conditions of the country in 2011, Central Statistical Office.
119
MINISTRY OF ECONOMY
7.1.2.
Prices of industrial production and construction/assembly
production39
Average annual prices of industrial output grew by 7.6% in 2011, i.e. faster than in 2010 (2.1%). Prices
increased in all sections. The most dynamic growth was achieved by industrial output in the mining and
quarrying section (16.8% against 17.8% in 2010).
The increase in prices was recorded in 20 out of the 22 manufacturing sectors. In 2011, the highest
growth was observed in the production of coke and refined petroleum products (of 33.6%), the
manufacture of metals (of 14.9%) and the production of chemicals and chemical products (of 11.9%). A
drop in prices was observed only in the production of electrical appliances (of 1.4%) and the
manufacturing of computers, electronic and optical goods (of 4.1% YoY).
Chart 31 Changes of industrial output prices in comparison to the same months of the previous year
%
9.5
10
9.1
8.8
8.4 8.5
8.2
7.9
7.5
8
6.8
6.3
6.2
5.9
6.0
5.6
6
4.4 4.4
5.0 4.4
4
2
0
I
II
III
IV
V
VI
VII VIII
IX
X
XI
XII
I
II
2011
III
IV
V
VI
2012
Source: CSO.
Chart 32 Changes in prices of construction and assembly production in comparison to the same month
of the previous year
%
2.0
1.8
1.6 1.6
1.7
1.5
1.5
1.4
1.4
1.3
1.1
1.1
1.0
0.9
0.8
0.7
0.6 0.6
0.5
0.4
0.4
0.3
0.0
I
II
III
IV
V
VI
VII VIII
IX
X
XI
XII
2011
I
II
III
IV
V
VI
2012
Source: CSO.
39
Production price indicators are provided according to the Polish Classification of Economic Activities 2007 (PKD 2007).
120
Average annual prices of construction and assembly production increased by 1.0% in 2011 (in
2010 a drop of 0.1%). The increased price growth rate in the sector resulted from the increased annual
activity in the construction industry. This can be brought back to the implementation of investment
projects which were postponed from 2010 due to unfavourable atmospheric conditions, to relatively
good weather conditions (mainly in 4Q11) and intensification of public investment projects in relation to
the organisation of 2012 European Football Championship. This resulted in the increased demand for
construction services being the main source of 1.0% rise in prices in this sector.
7.2. Monetary policy
7.2.1.
Basic factors influencing the implementation of monetary policy
In its Monetary Policy Guidelines for 2011, the Monetary Policy Council (MPC) listed external factors
with the most extensive potential impact on the volatility of prices in the Polish economy, one of which is
the weakening inflation pressure in the most developed or developing economies of the World. Among
endogenous factors, in the context of inflation processes, the MPC listed: economic activity in Poland,
situation in the labour market, fiscal policy and the development of bank lending. Persisting high liquidity
in global financial markets was recognised as the most serious risk conductive to higher inflation
pressure.
In Poland 2011 was marked by a higher rate of economic growth than in the previous year. The GDP
grew by 4.3%, as compared to 3.9% in 2010. In the following quarters, the GDP growth rate ranged
from 4.2% to 4.6% YoY. The improvement in the economic situation of the country, along with the
increasing inflation, was accompanied by the progress on the labour market, where an increasing
demand for work translated into employment growth. However, the improvement in the labour market
was not reflected in the decreasing unemployment rate. This mainly resulted from the growing labour
supply, i.e. a growing number of economically active people, who assessing the labour market
perspectives as positive decided to become part of the workforce.
The condition of the state budget proved to be better than assumed in the Budget Act. As a result, the
budget deficit amounted to PLN 25.1 billion instead of the planned PLN 40.2 billion. However, the
balance of the entire public finance sector continued to deteriorate, which led to an increase in the state
debt-to-GDP ratio from 52.8% in 2010 to 53.5% in 2011. The situation in terms of the balance of
payments improved. The ratio of current account deficit to GDP decreased from 4.6% in 2010 to 4.3% in
2011.40 However, the balance of Polish foreign trade slightly deteriorated. The deficit, which in 2010
amounted to EUR 13.8 billion, in 2011 increased to EUR 14.7 billion.4
Favourable tendencies prevailed in the external environment of Poland. Despite the problems of the
specific euro area countries (mainly in the 2nd half of 2011), the EU economy was developing at a rate of
1.5% throughout the entire 2011. In Germany, which is Poland’ main trade partner (around 25% of
Polish exports), the GDP growth in 2011 reached the value of 3.0%. Since the Polish economy is
strongly connected with the economic cycle in Germany, this translated positively into the results of
Polish economy.
40
According to the preliminary data of the Central Statistical Office.
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MINISTRY OF ECONOMY
Throughout 2011 interest rates were changed four times. As a result, they increased and reached the
following levels: the reference rate – 4.50%, the lombard rate – 6.00%, the deposit rate – 3.00%, and
the rediscount rate – 4.75%.
7.2.2.
Monetary policy implementation in 2011
The Consumer Price Index (CPI), calculated as a change in consumer prices in a given month
compared to the same month of the previous year, is the basis for interpretation of the inflation target.
While analysing and explaining inflationary processes, the Monetary Policy Council (MPC) also
extensively applies core inflation measures.
Chart 33 CPI and net inflation indices as compared to the adopted inflation target, and the range of
acceptable fluctuations
%5
4
3
2
1
0
I II III IV V VI VIIVIII IX X XI XII I II III IV V VI VIIVIII IX X XI XII I II III IV V VI
2009
2010
2011
CPI
Net inflation
Inflation target
Upper/lower limit
Source: CSO, NBP.
The main objective set forth in the Monetary Policy Guidelines for 2011 was to keep inflation close to
the mid-term inflation target (2.5 %). Aiming to achieve the objective with persistent inflation pressure, in
the first half of 2011 the Monetary Policy Council raised the basic NBP interest rates four times,
increasing each of them by a total of 1 pp. In the second half of the year the MPC did not change the
interest rates, considering the changes already introduced sufficient and thus conducive to the return of
the Polish economy onto the growth path.
7.2.3.
Instruments of monetary policy implementation
Interest rates
The short-term interest rate was the main instrument used by the National Bank of Poland in 2011 to
implement the DIT strategy. 41
The Monetary Policy Council specifies the NBP interest rates, which determine the interest of monetary
policy instruments, i.e. open market operations, compulsory minimum reserves and standing facilities.42
Direct Inflation Target Strategy followed by the NBP since 1998.
The main NBP rate is the reference rate, which determines the level of open market rates with the maturity date similar to
the maturity of basic open market operations. The NBP deposit and lombard rates set the range of fluctuations for overnight
interbank interest rates.
41
42
122
Following the changes, at the end of 2011 the reference rate amounted to 4.5%, the lombard rate – to
6.0%, the deposit rate – to 3.0%, and the rediscount rate – to 4.75%
As the so-called bill discount facility met with little interest on the part of financial institutions, according
to Monetary Policy Guidelines for 2011, MPC decided to withdraw this instrument and by this the
discount rate as of 1 January 2011.
Chart 34 Interest rates and CPI
% 8
7
6
5
4
3
2
Lombard rate
Rediscount rate
Reference rate
Deposit rate
01/05/2011
01/03/2011
01/01/2011
01/11/2010
01/09/2010
01/07/2010
01/05/2010
01/03/2010
01/01/2010
01/11/2009
01/09/2009
01/07/2009
01/05/2009
01/03/2009
01/01/2009
01/11/2008
01/09/2008
01/07/2008
01/05/2008
01/03/2008
01/01/2008
01/11/2007
01/09/2007
01/07/2007
01/05/2007
01/03/2007
01/01/2007
01/11/2006
01/09/2006
01/07/2006
01/05/2006
01/03/2006
0
01/01/2006
1
CPI
Source: NBP, CSO.
Given the fact that the situation in the economic environment of Poland changes dynamically, in 2011
the MPC used the interest rate instrument to stabilise the level of consumer prices. Taking into account
the medium-term perspective of inflation, in the 1st half of 2011 the MPC increased the main interest
rates four times, each time by 0.25 percentage point. In the 2nd half of 2011 the monetary policy of the
NBP became more neutral. Given the global downturn in economic activities, and thus the potential
deterioration of the economic situation among the main trade partners of Poland, MPC decided to keep
the rates unchanged. Furthermore, the MPC considered that the inflationary pressure was reduced by
the expected decrease in the dynamics of GDP of Poland in the 2nd half of 2011 in relation to the strict
fiscal policy, resulting from the on-going consolidation process in the public finance sector.
Open market operations
Open market operations are the basic instruments allowing for keeping short-term interest rates at a
level consistent with the inflation target set forth by the MPC. The NBP may carry out basic, fine-tuning
and structural operations.
In 2011, the NBP, as a part of its basic open market operations, issued once a week money bills with
the maturity date of 7 days. In this period, the average level of bills issued exceeded significantly that in
2010. In 2011, it reached the level of PLN 95.2 billion while in 2010 it amounted to PLN 73 billion.
123
MINISTRY OF ECONOMY
Additionally, in 2011 the NPB issued money bills under so-called fine-tuning operations with a shorter
maturity date than that of basic operations. They aimed at reducing the impact of changes in the liquidity
conditions in the banking sector at the level of short-term market rates of interest43. Throughout the
year, 27 fine-tuning operations were carried out with the average level of NBP money bills issued
amounting to PLN 1,453 million (compared to PLN 48 million in 2010).
Compulsory minimum reserves
It is the obligation of banks, loan institutions and branches of foreign banks operating in Poland to keep
reserves in the account of the National Bank of Poland. The basis for calculating the value of the
compulsory minimum reserves constituted refundable cash deposited in bank accounts and generated
from the sale of securities. This reserve was calculated and kept in Polish zloty.
In 2011 the main compulsory minimum reserves amounted to 3.5%. At the end of 2011 it amounted to
PLN 28 billion in nominal terms and was higher than in 2010 by PLN 2.1 billion (an increase of 8.1%).
The interest on the funds of the compulsory minimum reserves maintained in the NBP amounted to 0.9
of the discount rate of bills. Following the changes of the main NBP interest rates in 2011, the average
interest on the funds accrued on the NBP accounts under the compulsory minimum reserves amounted
to 4.03% and was higher than in 2010 by 0.65 percentage point.
Standing facilities
Standing facilities contribute to the stability of interbank interest rates. These operations include the
deposit facility and the lombard facility. These operations are initiated by commercial banks and they
are a source of short-term supplementation of the banking sector liquidity and also allow banks to make
overnight deposits of their surplus liquidity with the NBP.
In 2011, the total amount of overnight deposits in the NBP amounted to PLN 261.1 billion and was 31%
lower than in 2010. In 2011, the average level of the deposit facility amounted to PLN 711.4 million, as
compared to PLN 1 billion in the previous year.
The total amount of lombard facility used per year amounted to PLN 173 million, as compared to PLN
182.4 million in 2010. As in 2010, the average overnight level of the facility used amounted to PLN 0.5
million.
Foreign exchange interventions
From September until December 2011 the NBP intervened in the foreign exchange market several
times. This opportunity was provided for in the Monetary Policy Guidelines for 2011.
43
NBP, Report on the implementation of the monetary policy in 2011.
124
8. THE PUBLIC FINANCE
Persistent high deficit in the public finance sector slows down capital accumulation and results in
lowering the pace of growth of GDP because it influences in a negative way national savings, increases
the national risk premium and increases the capital cost and the need of servicing an ever increasing
debt. Public finance discipline is the key element of macroeconomic stability and thus of the state’s
credibility; the latter is particularly important in the present period of turbulence on financial markets and
the accompanying uncertainty combined with the risk of sudden capital flows.
The performance of the public finance sector depends on economic fluctuations to a large extent. As a
rule, during a period of fast economic growth the income from taxes grows dynamically and some
categories of public expenditure decrease due to the improved economic situation of the population.
Similarly, during an economic slowdown tax revenues fall while some categories of public expenditure
rise. This regularity could be observed in Poland recently as an unfavourable macroeconomic situation
translated into the deterioration in public finance, as evidenced by the worse general government deficit
and debt to GDP ratio, as compared to the previous year.
8.1. State budget
On 20 January 2011, the Polish Sejm passed the Budget Act for 2011. The adopted state budget deficit
was no more than PLN 40.2 billion. The GDP growth rate in 2011 was higher than predicted in the
Budget Act (3.5%) and reached the value of 4.3%. The average annual growth in consumer prices in
2011 amounted to 4.3%, as compared to 2.3% assumed in the Act. These factors were among the
reasons why the actual budget deficit at the end of 2011 was lower than initially planned and amounted
to PLN 25.1 billion.
State budget revenue
The state budget revenue amounted to PLN 277.6 billion in 2011. It was higher than predicted in the
Budget Act by PLN 4.5 billion, which represented 101.6% of the amount initially planned. In comparison
to 2010, the revenue increased by PLN 27.3 billion, i.e. by 10.9% in nominal terms and by 6.3% in real
terms. The budget revenue to GDP ratio in 2011 was 18.2%.
The temporary (2008–2010) downward trend of the tax revenue to GDP ratio resulted not only from the
economic slowdown in the recent period but also from the systemic changes introduced in the years
2008-2009. The most important among them that had an impact on the decrease in tax revenues
included:
− Introduction of a child tax relief in the personal income tax (PIT);
− Reduction in PIT rates, which resulted in the decrease in the PIT revenues in 2009 and partially in
2010 (through an annual tax return mechanism);
− Shortening in 2009 the VAT return date from 180 to 60 days and introducing a possibility of settling
VAT on imports in an income statement with respect to certain simplified procedures;
125
MINISTRY OF ECONOMY
− Elimination of legal restrictions on deducting VAT on cars with cargo compartments and on fuel
used in these vehicles.
In 2011, VAT revenues amounted to PLN 120.8 billion and were PLN 1.5 billion (1.3%) higher than
predicted in the Budget Act. Higher execution of VAT revenues as compared to the amount assumed in
the Budget Act was mainly determined by a better than predicted development of the macroeconomic
situation. In particular, a significantly higher growth rate of individual consumption and inflation was
observed, which had a direct positive influence on the VAT revenue level.
Excise tax revenues amounted to PLN 58.0 billion and constituted 98.7% of the forecast presented in
the Budget Act. As compared to 2010; they grew by 4.1% in nominal terms and fell by 0.2% in real
terms.
In 2011, the state budget revenue from corporate income tax was executed in the amount of PLN 24.9
billion, constituting 100.2% of the amount assumed in the Budget Act. As compared to 2010, the
revenue was higher by PLN 3.1 billion, that is by 14.2% in nominal terms and by 9.5% in real terms. The
revenue to GDP ratio amounted to 1.6% in 2011, as compared to 1.5% in 2010.
In 2011, the state budget revenue from personal income tax amounted to PLN 38.1 billion and was
0.3% lower than the forecast presented in the Budget Act; at the same time, it was higher than the year
before by 7.0% in nominal terms and by 2.6% in real terms. The revenue to GDP ratio amounted to
2.5% and was at the same level as in 2010.
Table 43 Budget receipts and expenditure in 2010-2011*
Plan
PLN billion
TOTAL RECEIPTS
1. Tax receipts
1.1. Indirect tax
1.2. Corporate income tax (CIT)
1.3. Personal income tax (PIT)
2. Non-tax receipts
3. Foreign receipts
4. Payments from the EU
TOTAL EXPENDITURE
Fixed expenditure
1. Subsidies to local government authorities
2. Public debt servicing
3. Subsidies to the Social Insurance Fund (FUS)
4. Subsidies to the Agricultural Social Insurance
Fund (KRUS)
5. Subsidies on national defence
6. EU budget contributions (projects financed
partly with EU funds)
7. Other fixed expenditure
Flexible expenditure
Balance*
*Percentage data are based on amounts in PLN million
Source: Ministry of Finance.
249.0
223.2
160.8
26.3
36.1
22.4
0.2
3.4
301.2
47.2
34.9
38.1
15.3
2010
Execution
PLN
%
billion
250.3
100.5
222.6
99.7
165.2
102.7
21.8
82.8
35.6
98.6
24.5
109.3
0.1
44.2
3.2
96.4
294.9
97.9
221.2
100.0
47.2
100.0
34.1
97.9
38.1
100.0
14.9
97.4
Plan
PLN
billion
273.1
242.7
179.7
24.8
38.2
28.0
0.1
2.4
313.3
48.4
38.4
37.1
15.1
2011
Execution
PLN
%
billion
277.6
101.6
243.2
100.2
180.3
100.3
24.9
100.2
38.1
99.7
32.3
115.1
0.3
401.5
2.1
85.4
302.7
96.6
225.8
100.0
48.1
99.4
36.0
93.6
37.5
101.1
15.1
100.0
18.8
13.9
18.5
10.9
98.5
78.5
20.2
15.0
19.2
11.4
95.1
76.0
-52.2
57.5
73.7
-44.6
100.0
85.4
-40.2
58.5
76.9
-25.1
100.0
62.5
126
Planned non-tax revenues were exceeded by PLN 4.3 billion (115.1%). Non-tax revenue was executed
at a higher level due to, among others, higher revenue from dividends. In 2011, proceeds from
dividends and profit payments were executed in the amount of PLN 6.1 billion and accounted for
170.5% of the amount predicted in the Budget Act. As compared to 2010, they increased by 23.0% in
nominal terms and by 17.9% in real terms.
In 2011, the EU funds, including EU contributions to the state budget, amounted to PLN 2.1 billion and
were lower by PLN 0.3 billion, i.e. by 14.6%, than the forecast in the Budget Act for 2011.
State budget expenditure
The Budget Act of 20 January 2011 provided for state budget expenditure in the amount of PLN 313.3
billion. The real executed expenditure amounted to PLN 302.7 billion. Comparing to 2010, the
expenditure was higher by PLN 7.8 billion, which amounts to an increase by 2.6% in nominal terms and
decrease by 1.6% in real terms. The share of state budget expenditure executed in 2011 in GDP
amounted to 19.9%.
When analysing the share of expenditure from the specific sections in the general expenditure, it can be
observed that largest share is represented by:
− Grants and subsidies (49.0%), including mandatory social insurance with the largest expenditure
allocated to subsidies to the Social Insurance Fund, Pension Fund and Agricultural Social Insurance
Fund;
− Public debt servicing (11.9%);
− National defence (6.3%).
As in the previous years, most of budget expenditure was fixed expenditure, i.e. expenditure required
under statutory provisions or legally binding commitments made earlier. Its share in total expenditure in
2011 amounted to 74.6% and was 0.4 pp higher than in 2010.
Table 44 Structure of budgetary expenditure (%)
2005
Fixed expenditure
Flexible expenditure
72.5
27.5
2006
74.3
25.7
2007
2008
2009
2010
2011
73.1
26.9
72.7
27.3
74.4
25.6
75.0
25.0
74.6
25.4
The current structure of budget expenditure, which has been marked by the dominance of fixed
expenditures for many years, limits the possibilities of the government to determine the level of budget
deficit. Statutory provisions and earlier legal commitments require that the following categories of fixed
expenditures be made: public debt servicing, subventions to local self-government entities, and support
for the institutions administrating the specific purpose funds.
Budget deficit
The state budget deficit in 2011 reached the value of PLN 25.1 billion, which represents 62.5% of the
amount planned in the Budget Act and 1.6% of GDP. The EU budget deficit amounted to PLN 12.2
billion, as compared to the statutory amount of PLN 15.4 billion. The negative balance of proceeds from
privatisation and their allocation amounting to PLN 9.2 billion and the negative balance of pre-financing
of tasks implemented with the use of funds from the EU budget amounting to PLN 0.1 billion (negative
balance of PLN 0.4 billion in the Act) were to be financed. As a consequence, the total amount to be
financed was PLN 46.6 billion, as compared to PLN 72.1 billion predicted in the Budget Act.
127
MINISTRY OF ECONOMY
As at the end of June 2012, the state budget revenue amounted to PLN 141.9 billion, which accounts
for 48.3% of the annual revenue planned in the Budget Act for 2012. The execution of expenditure is
higher and amounts to 49.5% (PLN 162.8 billion). After the first six months, the budget deficit was PLN
20.9 billion, i.e. 59.8% of the deficit planned in the Budget Act for 2012.
8.2. Public finance
The improvement in public finance is the major challenge for the current economic policy of Poland. The
key objective is to cut the public finance sector spending and reduce its deficit. The poor condition of
public finance adversely affects the state budget. Long-lasting budget deficit increases public debt and
has a negative effect on the country's economic situation.
PLN bln
Chart 35 Budget deficit and general government sector deficit
9 %
120
8
100
7
80
6
5
60
4
40
3
2
20
1
0
0
2005
2006
2007
2008
2009
2010
2011
Budget deficit (PLN billion)
General government sector deficit (PLN billion)
General government sector deficit (% GDP)
Budget deficit (% GDP)
Source: Strategy and Analyses Department, Ministry of Economy, based on Ministry of Finance data.
Therefore, the permanent high deficit of the Polish public finance sector, which exceeded 4% of GDP in
2001-2005 and went beyond 6% in 2003, is alarming. In 2006-2007, the public finance sector deficit
was reduced due to a faster economic growth and a lower budget deficit. However, in the following
years the fiscal imbalance deepened significantly as a result of a slower GDP growth and implemented
structural reforms, which led to the decrease in revenues of the general government sector (including
the reduction of the disability pension contributions and the decrease in the PIT rate since 2009). The
deficit of the general government sector in 2009 amounted to 7.4% of GDP, which means that it
increased by 3.7 pp, as compared to the previous year; one year later, the value was 7.8% GDP. 2011
saw an improvement and the deficit amounted to PLN 78.0 billion, i.e. 5.1% of developed GDP44.
The public debt-to-revenue ration (after consolidation) amounted to 52.8% in 2010. In 2011 it increased
to 53.5%. This means that the prudential threshold provided for in the Public Finance Act (50%) remains
exceeded. General government debt increased from 55.0% to 56.4%.
According to the communication of the Central Statistical Office on deficit and general government debt in 2011 (the socalled fiscal notification) of 23 April 2012.
44
128
According to 2012 forecasts adopted by the Ministry of Finance, the general government deficit and
public debt will amount to 2.9% and 53.7% of GDP, respectively45. At the end of April 2012, the State
Treasury debt stood at PLN 772.6 billion and increased by 0.2% as compared to the end of 2011.
Box 17 Measures aimed at public finance consolidation
In line with the European Commission’s recommendations, in 2012 Poland should eliminate the excessive
general government deficit in a reliable and sustainable way. Convergence Programme – 2012 Update contains a
list of activities aimed at facilitating the fiscal consolidation:
− Limiting the opportunity to deduct VAT calculated for the purchase of passenger cars with truck homologation
and fuel used for their propagation;
− Removing the excise discount for bio-components;
− Increasing excise tax for cigarettes;
− Increasing excise tax for diesel oil and fuel duty;
− Freezing the PIT scale;
− Changes in the tax on profits from bank deposits;
− Negative effect of increasing the disability pension contribution on income taxes;
− Increasing income from dividends;
− Introduction of payments for the use of some natural deposits (tax on the excavation of copper and silver);
− Higher disability pension contribution paid by employers (increase by 2 pp);
− Changes in the pension system (limiting the contributions to Open Pension Funds);
− Proceeds from fines from the new system of speed cameras;
− Disciplinary expenditure rule (including the result of freezing the nominal wage fund) with the result of
imposing the rule on new legally determined expenditure and flexible expenditure;
− Lowering direct state subsidies for farmers;
− Limiting entitlements to early retirement;
− Lowering the level of funeral payments;
− Limiting the cost of debt servicing as a result of changes in pension system.
Table 45 State Treasury debt and general government sector debt* (PLN billion and % of GDP)
2005
2006
2007
2008
2009
2010
2011
PLN billion
440.2
478.5
501.5
569.9
631.5
701.9
771.1
State Treasury debt
% of GDP
44.8
45.1
43.1
44.7
47.0
49.6
50.6
General government sector debt % of GDP
47.1
47.7
45.2
46.9
49.8
55.0
56.4
* The State Treasury debt includes domestic and foreign liabilities of the State Treasury (securities issued on the domestic
and foreign markets), credits and loans obtained and matured liabilities of budgetary units. The debt of the sector of
government and self-government authorities (pubic debt, public finance sector debt) includes the State Treasury debt and
the remaining debt of the sector of government bodies (including the debt of the social insurance sector) and debt of the selfgovernment sector.
45
Source: Convergence Programme Update 2012.
129
MINISTRY OF ECONOMY
Box 18 Fiscal rules46
The main aim of fiscal rules is to ensure fiscal and macroeconomic stability and maintain (or possibly limit) the
size of public finance sector at a specified level. National fiscal framework in Poland are based on several rules.
The most important one is the rule of debt, provided for in two legal acts – Constitution of the Republic of Poland
and Public Finance Act; the main aim of this principle is to prevent the overdraft of certain limits (as % of GDP) of
state public debt (calculated with the use of Polish methodology).
A new rule is the disciplinary expenditure rule, in force since 2011. It limits the pace of increase in discretionary
spending and the so-called new fixed spending that include also the fixed spending made so far if the legal act
determining them is modified. A possible draft act resulting in an increase in the above-mentioned spending
would need to be taken into account in the total amount of discretionary spending and new fixed spending, which
in real terms may not rise more than by 1% per year. The disciplinary expenditure rule will stay in force until the
Ecofin Council issues a decision waiving the excessive deficit procedure against Poland.
At the same time, analytic work is being carried out with reference to a stabilising (permanent) expenditure rule
which – after the deficit is lowered to MTO level – is to ensure the stabilisation of general government account in
the medium term at the level of -1% of GDP47. This path will ensure the a decrease in the deficit of the sector to
the level of medium-term budgetary objective in 2015.
Since 2009, changes have also been introduced in the rules of financial management of local government units.
The aim of such changes is to increase financial discipline, including to make the debt-raising capacity of these
units conditional on their economic potential and individual financial situation. In accordance with the presently
binding regulations (Public Finance Act), changes will be introduced in 2014 in the rules of raising debts by local
government units. The limits of liability and debt servicing costs that are in force at present will be replaced by
individual debt ratios mirroring the economic capability of local government units to pay off debts. The new limit
will depend on the capacity of a unit to generate appropriate surplus in the current part of the budget, as well as
on the level of income from the sale of assets. Since 2011, local government units have also been obliged to
balance the current part of the budget.
8.3. Meeting the Treaty of Maastricht criteria
Poland, like the majority of new EU Member States, has not adopted the common currency48 yet. The
necessary requirement for accession to the euro area is to meet the convergence criteria set out in
Article 121(1) of the Maastricht Treaty on the European Union. The convergence criteria are
macroeconomic indicators whose fulfilment means that a country is prepared to join the common
currency area. The convergence criteria can be divided into fiscal and monetary criteria (inflation,
exchange rates and interest rates).
Fiscal criterion
The fiscal criterion concerns the percentage ratio of the deficit and general government debt to GDP.
The general government deficit to GDP ratio measured in market prices should not exceed 3% in the
year preceding the evaluation of criteria fulfilment. The public debt to GDP ratio measured in market
prices should not exceed 60% in the year preceding the evaluation.
Convergence Programme Update 2012, document adopted by the Council of Ministers on 25 April 2012.
In the case of change in the MTO level, the level of deficit whose meeting in medium term would be ensured by a
stabilising expenditure rule would also be changed accordingly.
48 From amongst new EU Member States, the following countries joined the euro zone: Slovenia (1 January 2007), Malta and
Cyprus (1 January 2008), Slovakia (1 January 2009) and Estonia (1 January 2011).
46
47
130
At the end of 2008, the share of general government deficit in GDP exceeded the reference threshold of
3% and amounted to 3.7%. In 2009–2010, this trend continued, which resulted in the deficit reaching
the value of over 7% of GDP. Although in 2011 the deficit was limited to almost 5% of GDP, the level
meeting this sub-criterion was still not reached. As regards the general government debt to GDP
criterion, in 2011 Poland remained substantially below the acceptable threshold (60%), i.e. at the level
of 56.3%49.
Taking into account the results of public finance sector in 2008, the European Commission opened on
24 June 2009 an excessive deficit procedure against Poland. At the same time, the Commission
recommended that Poland should reduce its public finance deficit by 2012 to 3% of GDP required under
the Maastricht Treaty. According to the recommendations issued by the Ecofin Council in July 2009,
Poland should reduce its excessive deficit in a credible and sustainable manner. To this end, Poland
should ensure an average annual reduction in the fiscal deficit (for the structural deficit) of at least
1.25% of GDP starting in 2010, define the detailed measures which are necessary to reduce the
excessive deficit and strengthen its medium-term budgetary framework.
According to the European Commission’s economic forecasts from May50, this year’s deficit in Poland is
to decrease to 3.0% of GDP and amount to 2.5% in the following year. The general government debt
will amount to 55.0% and 53.7%, respectively
Inflation rate criterion
The inflation criterion sets a limit for the permissible inflation rate. The average inflation rate in the year
preceding the evaluation should not exceed by more than 1.5 pp the arithmetic average for the three
best performing EU Member States in terms of price stability51. According to the methodology adopted,
inflation should be measured using the Harmonised Index of Consumer Prices (HICP).
According to the data for May 2012, the criterion for that period was 3.1% and the HICP (12M average)
in Poland reached the level of 4.0%52. This means that Poland has not met the price stability criterion.
The reference value was established on the basis of three countries with the most stable prices:
Greece, Ireland and Sweden.
Exchange rate criterion
The exchange rate criterion is a requirement for participation in the ERM II mechanism. According to
this criterion, a Member State should respect the normal fluctuation margins provided for by the
exchange rate mechanism without severe tensions for at least the last two years before the evaluation
of compliance with convergence criteria. This criterion is considered fulfilled when a Member State has
kept its currency exchange rate within the fluctuation margins (+/- 15%) under the European Monetary
System for at least two years before the evaluation. In 2011, Poland did not fulfil the exchange rate
criterion.
According to the ESA'95 methodology - General Government (GG).
European Commission DG-ECFIN, Economic Forecast – Spring 2012.
51 According to the previous practice of calculating the reference value for the price stability criterion, the value was
estimated with the assumption that a country with deflation cannot be deemed one of the three best performing EU Member
States in terms of price stability. This assumption was made on the basis of the ECB’s definition of price stability and the
interpretation of the Treaty provisions made in the 2004 Convergence Reports. The 2010 Convergence Reports include new
information on calculating the reference value of the price stability criterion in exceptional circumstances.
52 Source: Nominal Convergence Monitor – July 2012, Ministry of Finance.
49
50
131
MINISTRY OF ECONOMY
Interest rate criterion
This criterion is fulfilled when the average nominal long-term interest rate in the evaluated country does
not exceed the reference value. The reference value is determined on the basis of the arithmetic
average of interest rates in the three best performing EU Member States in terms of price stability and
by adding 2.0 pp to the average. Interest rates are measured on the basis of long-term government
bonds or comparable securities, and the average nominal long-term interest rate is calculated as an
arithmetic average over the latest 12 months.
In May 2012, the yield on Polish 10-year bonds exceeded the reference value of 4.0% in force at that
time and amounted to 5.7%. As a result of changed methodology of identifying the reference group for
long-term interest rate criterion, the reference value was calculated on the basis of data for only one
state, i.e. Sweden53. On the basis of the contents of Convergence Report 2012, published by the
European Commission in May 2012, countries covered with EU/IMF aid programme, i.e., Greece and
Ireland, were excluded from the reference group.
Table 46 Meeting the Maastricht criteria by Poland
2011
2012*
Criterion
Poland
Criterion
Poland
General government sector deficit-GDP ratio * (in%)
3.0
5.1
3.0
3.0 (2.9)
General government sector debt-GDP ratio ** (in%)
60.0
56.4
60.0
55.0 (53.7)
Inflation (HICP – in %)
3.1
3.9
3.1
4.0 (4.0)
Interest rates
7.7
6.0
4.0
5.7 (5.6)
* According to the data available in May 2012 and European Commission’s forecast (in brackets – data from Convergence
Programme – Update 2011 of April 25, 2012).
** Using ESA'95 methodology - General Government (GG).
Source: Strategy and Analyses Department, Ministry of Economy.
53
Source: Nominal Convergence Monitor – July 2012, Ministry of Finance.
132
9. INDUSTRY
9.1. Dynamics and structure of industrial output
9.1.1.
Industrial output dynamics
In 2009, the decline in industrial output in the first three quarters of the year was the effect of the global
economic crisis affecting the Polish economy. From the 4th quarter onwards, economic activity started to
recover. The favourable situation in industry was observed in 2010 and 2011, when output increased by
9.0% and 7.5%, respectively. In 2012, Polish industry suffered the consequences of yet another wave of
economic crisis in Europe. Output growth rate weakened considerably to less than 5% in the 1st and ca.
3% in the 2nd quarter.54
The industrial output sold, measured in current prices, exceeded in 2011 for the first time in history the
level of PLN one thousand billion and amounted to PLN 1,166 billion (in 2010: PLN 986 billion)
Chart 36 Industrial output changes in each quarter of 2009-2012 (in %, compared to the same quarters of
the previous year, current prices)*
%
15
11.6
9.5
10
10.8
9.7
9.1
7.5
5.8
5.5
6.1
4.9
5
2.8
0
-1.3
-5
-6.7
-10
-10.0
-15
I
II
III
2009
IV
I
II
III
IV
I
2010
II
III
2011
IV
I
II
2012
*Enterprises with more than 9 employees
Source: Central Statistical Office, Statistical Bulletins.
The manufacturing section, which accounts for over 80% of total output, determines the
industrial output growth rate. In 2011, output increased by 8.2% in this section. Growth was also
observed in the other industry sections: mining and quarrying – by 3.7% (this section was the only one
where output fell in 2010); electricity, gas, steam and hot water supply – by 1.7%, and water supply,
sewage and waste management – by 5.6%.
Remarks concerning 2012 and data comparisons for 2012 involving earlier years refer to entities employing more than 9
employees.
54
133
MINISTRY OF ECONOMY
In the 1st quarter of 2012, industrial output increased by 3.8%, and in the 1st quarter of 2011 by
7.4%. Mining and quarrying was the only section where production fell by 7.8%, while a year before it
grew by 5.5%. In the remaining sections, output increased: in manufacturing by 4.4% (a year before by
8.1%), in electricity, gas, steam and hot water supply by 3.0% (a year before by 0.2%), and in water
supply, sewage and waste management by 2.1% (a year before by 6.2%).
Chart 37 Changes in industrial output by sections in 2009-2010-2011 (compared to the previous year)
% 15
10
9.9
9.0
9.5
8.2
7.5
5.6
5
3.7
3.0
1.7
0
-1.2
-5
Industry
Section B
Section C
2010
Section D
Section E
2011
Section B – mining and quarrying,
Section C – manufacturing,
Section D – electricity, gas, steam and hot waterair conditioning supply,
Section E – water supply, sewage andsewerage, waste management and remediation activities
Source: Statistical Yearbook of the Central Statistical Office 2012, calculation of Strategy and Analyses Department, Ministry
of Economy.
The trends observed in Poland as regards industrial output dynamics across the sections in the long run
reflect the trends observed in the developed countries. Output growth was the fastest in the
manufacturing sector which determines the dynamics of the whole industry. In 2011, as compared to
2005, total industrial output grew by 43.1%, with the increase of 52.0% in the manufacturing output and
the decline of 8.4% in the mining and quarrying output. At the same time, the electricity, gas and hot
water supply section output declined by 3.3%. Water supply, sewage and waste management recorded
a growth of 43.7%.
In 2011, 19 out of 22 examined sections of the manufacturing recorded the output growth (in 2010
fifteen). The highest increase was observed in manufacturing of other transport equipment (by 39.1%),
the manufacturing of metal products and of furniture (18.2% each). Declines were observed in the
manufacturing of pharmaceutical products (of 12.2%), manufacturing of computers, electronic and
optical products (by 7.0%) and manufacturing of machinery and equipment (by 2.9%).
In the 1st half of 2012, output growth was recorded in 17 out of 22 examined sections, so the same as in
the previous year. The fastest growth was recorded in the manufacture of tobacco products (by 23.7%).
Growth by 10%-20% occurred in the manufacture of: other transport equipment, chemicals and
chemical products, metal products and machinery and equipment. Five sections recorded decline:
manufacture of clothing and of other non-metallic raw material products (below 1%), manufacture of
motor vehicles and of furniture (ca. 5%) and manufacture of pharmaceutical products (by 8.0%).
134
The output dynamics across the branches of the manufacturing section is diversified inover long
runtime. In 2011, as compared with 2005, the highest growth was recorded in manufacture of computer,
electronic and optic products (almost threefold), manufacture of electric equipment (almost 2.5-fold),
manufacture of metal products (by over 80%) and manufacture of motor vehicles (by over 70%). The
output declined in two sections, namely in the manufacture of tobacco products (by over 30%) and
clothing (by ca. 10%).
The dynamics of the industrial output by main industrial groups in 2011 was slightly diversified. Output
grew in all five groups of goods. In the group of capital goods it grew by 10.9% (a year before by 9.8%),
and in the group of intermediate goods by 10.3% (as compared to 17.6% a year before). The
manufacture of non-durable consumer goods increased by 5.0% (a year before by 3.7%) and durable
consumer goods by 0.1% (a year before by 12.5%). In the group of energy-related goods the growth
amounted to 2.1%, as compared to a decrease by 1.1% a year before.
In 2011, the average employment in the industry amounted to 2,720 thousand people and was higher
by 0.9% than a year before. The decline in employment was observed in the mining and quarrying
section and in the electricity, gas, steam and hot water supply section (by 0.6% and 2.5%, respectively).
The other two sections recorded the employment growth.
Labour productivity measured by output sold per one employed person grew in 2011 by 6.5% (by 10.2%
in 2010). The decrease in productivity growth rate resulted on the one hand from decreased production
dynamics, and on the other hand from increased employment compared to its decrease in 2010.
Productivity grew in all sections, most notably in industrial manufacturing (by 6.9%), where a relatively
high production growth rate was accompanied by a relatively low employment growth; next were the
sections mentioned above which recorded employment decline in 2011.
Chart 38 Changes in labour efficiency by sections of industry in 2010 and 2011 (in comparison
to the previous year)
%
15
11.5
10.2
10
6.9
6.5
4.6
5
6.5
4.3
4.3
3.3
0
-2.7
-5
Industry
Section B
Section C
2010
Section D
Section E
2011
Section E – water supply, sewage andsewerage, waste management, and remediation activities
of Economy.
135
MINISTRY OF ECONOMY
In 2011, the average gross monthly salary in industry amounted to PLN 3,471 and increased by 6.5%
in nominal terms, as compared to the growth by 5.3 the previous year. Real wages grew by 2.1% (by
2.6% in 2010the year before).
Table 47 Dynamics of output, employment, efficiencyeffieciency and salaries in industrial sections in
2010-2011
Industry
2010
Output dynamics
Avarage employment
%
thous.
persons
%
2011
B
2010
C
2011
2010
D
2011
2010
E
2011
2010
2011
109.0 107.5
98.8 103.7 109.9 108.2 103.0 101.7 109.5 105.6
2,696 2,720
173
172 2,230 2,256
159
155
134
137
Employment dynamics
98.9 100.9 94.5 99.4 98.6 101.2 105.9 97.5 102.8 102.2
Labour efficiency
%
110.2 106.5 104.6 104.3 111.5 106.9 97.3 104.3 106.5 103.3
dynamics
Avarage salary
thous. PLN 3,258 3,471 5,818 6,637 2,917 3,088 5,252 5,614 3,228 3,352
Salary dynamics (nominal)
%
105.3 106.5 101.9 114.1 105.5 105.9 107.8 106.9 105.3 103.9
CPI
%
102.6 104.3 102.6 104.3 102.6 104.3 102.6 104.3 102.6 104.3
Salary dynamics (real
%
102.6 102.1 99.3 109.4 102.8 101.5 105.1 102.5 102.6 99.6
terms)
Change of unit labour cost
%
-6.9 -4.2
-5.0
4.9
-7.7
-5.0
8.0
-1.7
-3.6 -3.6
Section C -– manufacturing,
Section E – water supply, sewage andsewerage, waste management, and remediation activities
of Economy.
In 2011, just like in 2010, the labour productivity growth rate was higher than the growth rate of
remunerations in real terms, which resulted in lower unit labour costs. In 2011, these costs
decreased at a slower pace than in the previous year, by 4.2% and 6.9%, respectively. The more
favourable indicator for 2010 is the result of a much higher growth rate of labour productivity. In 2011,
similar as in 2010, the labour productivity growth rate was higher than the growth rate of
remunerations in real terms, which resulted in lower unit labour costs. In 2011, these costs
decreased at a slower pace than in the previous year, by 4.2% and 6.9%, respectively. The more
favourable indicator for 2010 is the result of a much higher growth rate of labour productivity than in
2011. The only section to see an increase in unit labour costs in 2011 (by 4.9%) was mining and
quarrying, where remunerations in real terms grew by over 9%. The greatest reduction in labour costs
(by 5.0%) was posted by the manufacturing industry.
In the 1st half of 2012, the output growth rate decreased (from 7.4% to 3.8%), as compared to the
same period in 2011. At the same time, employment decreased (by 0.7%, while in the 1st half of 2011 in
grew by 2.6%). Under such circumstances the rate of labour productivity growth declined only slightly
(from 4.7% to 4.5%), mainly due to the decrease in employment in 2012. Real wages increased in the
1st half of 2012 in a pace similar to that in the last year – by 1.1% and 1.3%, respectively. The decrease
in unit labour costs in the same time amounted to 3.3%, as compared to 3.2% the year before.
136
Chart 39 Changes in labour efficiency and salaries in industrial sections in 2010 and 2011 (in comparison
to the previous year)
%
10
8.0
4.9
5
0
-1.7
-5
-4.2
-3.6
-5.0
-6.9
-3.6
-5.0
-7.7
-10
Industry
Section B
Section C
2010
Section D
Section E
2011
Section D – electricity, gas steam and air conditioning supply,
Section E – water supply, sewerage, waste management and remediation activities
of Economy.
9.1.2.
Structure of output sold in various sections and divisions of
industry
The diversified dynamics of industrial output across sections and branches results in the change of its
structure. In current prices, the mining and quarrying as well as manufacturing sections in 2011
recorded a growth of its share in the industrial output. In the case of the first section, the growth resulted
mainly from a high increase in prices (by 16.8%), because the real output growth was not significant
(3.7%) and twice lower than the output growth rate in the entire industry. In the case of the latter
section, the growth was due to both a high output growth rate (8.2%) and the increase in prices (by
7.5%), with both these factors close to the levels for the whole industry. The share of the remaining
sections in the industrial output decreased.
Changes in the structure of output in current prices are determined by price fluctuations and output
dynamics. Price changes occurring at various rates distort the analysis of the output structure. A correct
analysis of output structure, its changes and underlying trends, should be based on real figures.
137
MINISTRY OF ECONOMY
Table 48 Share of industry branches in output in current prices and constant prices
Industrial output
bln PLN
1
Output
structure
(current
prices) %
2010
2011
2010
2011
2
3
4
5
Output
dynamics
PPI 2011
in 2011
%
(constant
prices) %
6
2011
2011
industrial
output
output
in bln PLN structure
in 2010
(constant
prices of constant
2010) prices (%)
(3x7)
7
8
9
50.8
61.5
5.2
5.3
103.7
116.8
52.7
4.9
Manufacturing
815.0
978.9 82.7 84.0
108.2
107.5
910.6
84.0
Electricity, gas steam and air
94.1
98.7
9.5
8.5
101.7
103.5
95.4
8.8
conditioning supply
Water supply, sewerage, waste
management and remediation
25.8
26.6
2.6
2.3
105.6
105.5
25.2
2.3
activities
Industry, total
985.7 1,165.7 100.0 100.0
107.5
107.6
1,083.8
100.0
of Economy.
Table 49 Output value, output dynamics and prices in selected branches of the manufacturing industry
Output dynamics
Specification
2010/
2009
2011/
2010
2011/
2009
Output value
in PLN bln
Structure %
Price index
%
2010
2010
2010/
2009
2011
2011
2011/
2010
Manufacturing
109.9 108.2 118.9 815.0 978.9 100.0 100.0 100.8 107.5
Manufacture of food products
104.6 105.8 110.7 141.1 178.5 17.3 18.2
99.6 109.5
Manufacture of beverages
91.5 103.6 94.79 17.9
20.0
2.2
2.0 100.0 102.8
Manufacture of tobacco products
98.5 103.9 102.3
3.3
3.3
0.4
0.3 104.3 103.7
Manufacture of textiles
100.6 109.7 110.4
8.2
9.1
1.0
0.9
99.6 103.4
Manufacture of wearing apparel
99.6 106.7 106.3
7.6
8.5
0.9
0.9
92.8 100.8
Manufacture of leather and related products
105.2 115.2 121.2
3.2
3.8
0.4
0.4 100.2 104.4
Manufacture of wood and of products of wood
107.6 100.9 108.6 25.5
29.1
3.1
3.0 100.0 107.5
and cork
Manufacture of paper and paper products
118.3 107.2 126.8 24.1
29.3
3.0
3.0 101.7 109.6
Printing and reproduction of recorded media
109.8 105.2 115.5 10.3
11.4
1.3
1.2
98.3 102.7
Manufacture of coke and refined petroleum
97.9 105.5 103.3 59.5
86.2
7.3
8.8 131.2 133.6
products
ManufacturingManufacture of chemicals and
53.9
5.4
5.5 102.5 111.9
113.1 111.3 125.9 44.0
chemical products
Manufacture of basic pharmaceutical products
103.9 87.8 91.22 11.6
10.9
1.4
1.1 103.0 105.6
and pharmaceutical preparations
Manufacture of rubber and plastic products
115.7 111.7 129.2 52.2
65.5
6.4
6.7 100.1 107.2
Manufacture of other non-metallic mineral
112.4 114.2 128.4 39.8
47.8
4.9
4.9
93.8 102.1
products
Manufacture of basic metals
119.3 112.0 133.6 35.6
47.0
4.4
4.8 108.9 114.9
Manufacture of fabricated metal products
113.3 118.2 133.9 61.1
76.0
7.5
7.8
96.7 103.1
Manufacture of computer, electronic and
134.9 93.0 125.5 38.9
35.5
4.8
3.6
93.1 95.9
optical products
Manufacture of electrical equipment
116.2 108.9 126.5 38.1
41.6
4.7
4.2
95.7 98.6
Manufacture of machinery and equipment
96.8 97.1 93.99 34.6
35.3
4.3
3.6
95.9 101.9
n.e.c.
Manufacture of motor vehicles, trailers and
116.8 113.6 132.7 91.9 108.3 11.3 11.1
94.8 103.3
semi-trailers
Manufacture of other transport equipment
90.0 139.1 125.2 11.3
15.4
1.4
1.6
98.4 100.9
Manufacture of furniture
94.2 118.2 111.3 25.7
31.7
3.2
3.2
98.5 101.6
of Economy.
138
Including only the real figures in the analysis of output structure changes the situation fundamentally.
Such analysis shows that the increase of share in industrial output in 2011 applies only to the
manufacturing (from 82.7% to 84.0%). This was the only section where the real output dynamics was
higher than that of the entire industry.
In 2011, the manufacture of food products (18.2%), motor vehicles (11.1%), coke and refined petroleum
products (8.8%) and metal products (7.8%) had the highest share in the manufacturing output structure
in current prices. These four divisions accounted for the highest share also in 2009 and 2010, and
generated altogether 45.9% of the manufacturing industry output in 2011.
The greatest positive changes in the structure (in current prices) in comparison with 2010 were recorded
in the manufacture of: coke and refined petroleum products (increase in share from 7.3% to 8.8%), food
products (increase from 17.3% to 18.2%) and basic metals (increase from 4.4% to 4.8%). The most
negative changes, on the other hand, occurred in the manufacture of: computer, electronic and optic
products (decrease in its share from 4.8% to 3.6%), machinery and equipment (decrease from 4.3% to
3.6%), and electric equipment (decrease from 4.7% to 4.2%).
Price indices in the manufacturing sections in 2011 varied significantly – from 95.9% in the manufacture
of computer, electronic and optic products and 98.3% in the manufacture of electric equipment to
133.6% in the manufacture of coke and refined petroleum products and 114.9% in the manufacture of
metals.
9.1.3.
Manufacture of selected products
The information below concerns the output volume of industrial products according to the Polish
Classification of Products and Services introduced in 2008. The data applies to the entities of the
national economy which employ more than 49 people.
In 2011, decrease was recorded in the case of eleven of the presented 29 products. Particularly
significant declines were recorded in the production of woman’s suits and apparel sets for women and
girls (by 64.2%), primary aluminium (by 39.6%) and TV sets (by 20.8%). The manufacture of cement, in
turn, increased significantly (by 22.7%). Moreover, an increase of over 10% was recorded in the
manufacture of lignite, diesel oil, phosphatic fertilizers, lime and hot-rolled products.
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MINISTRY OF ECONOMY
Table 50 Manufacture of selected products in the years 2009-2011
Unit
2009
2010
2011
2010/
2009
98.3
99.1
Dynamics
2011/
2010
99.5
111.3
2011/
2009
97.8
110.4
76.6
76.2
Hard coal
mln tonnes
77.9
Lignite
mln tonnes
56.9
56.4
62.8
Oils from crude oil and oils from
thous. tonnes
677
683
615
100.9
90.0
90.8
bituminous minerals
Natural gas in liquid or gas state
hm3
5,479 5,666 5,823
103.4
102.8
106.3
Copper ores and concentrates
thous. tonnes 33,183 32,648 33,117
98.4
101.4
99.8
Men’s or boys’ suits and ensembles
thous. units
1,463 1,364 1,298
93.2
95.2
88.7
Women’s or girls’ suits and ensembles
thous. units
495
438
157
88.5
35.8
31.7
Footwear (including rubber)
mln pairs
29.7
30.4
31.8
102.4
104.6
107.1
Coke and semi-coke obtained from
mln tonnes
7.0
9.6
9.2
137.1
95.8
131.4
coal, lignite or peat; retort carbon
Motor gasoline
thous. tonnes
4,283 4,222 3 ,925
98.6
93.0
91.6
Diesel oils
thous. tonnes
8,891 9,739 10,739
109.5
110.3
120.8
Nitrogenous fertilizers
thous. tonnes
1,503 1,630 1,762
108.4
108.1
117.2
Phosphatic fertilizers
thous. tonnes
242
478
530
197.5
110.9
219.0
Potassic fertilizers
thous. tonnes
173
314
314
181.5
100.0
181.5
Cement
mln tonnes
15.3
15.4
18.9
100.7
122.7
123.5
Lime
thous. tonnes
1,663 1,756 1,982
105.6
112.9
119.2
Crude steel
thous. tonnes
7,128 7,993 8,776
112.1
109.8
123.1
Hot rolled products
thous. tonnes
6,232 6,658 7,504
106.8
112.7
120.4
Hot rolled products
thous. tonnes
347
384
408
110.7
106.3
117.6
Aluminium technically pure
thous. tonnes
10.3
10.1
6.1
98.1
60.4
59.2
Unwrought, unalloyed refined copper
thous. tonnes
520
568
594
109.2
104.6
114.2
Television receivers
thous. units
23,418 26,094 20,674
111.4
79.2
88.3
Electric motors and generators
thous. units
15,816 21,358 22,774
135.0
106.6
144.0
Household refrigerators and freezer
thous. units
1,886 1,867 1,746
99.0
93.5
92.6
Household automatic washing
thous. units
3,251 4,025 4,036
123.8
100.3
124.1
machines
agricultural tractors
thous. units
3.6
3.4
3.4
94.4
100.0
94.4
Passenger cars
thous. units
819
785
740
95.8
94.3
90.4
Maritime ships
thous. GT
231.0
23.9
22.0
10.3
92.1
9.5
Electricity
TWh
152
157
163
103.3
103.8
107.2
of Economy.
9.2. Essential problems of industry. Situation in selected
sectors
9.2.1.
Hard coal mining
In the recent years the situation on the market of hard coal, both steam coal and coking coal, was
characterised by considerable changeability, determined mainly by the global economic crisis. In 2010,
the use of hard coal amounted to 84.6 million tonnes and was lower than in 2006 by 2.7%, but higher
than coal use in 2009 by almost 9 million tonnes. In 2011, the use of coal increased further to the level
of 85.2 million tonnes, including 12.7 million tonnes of coking coal.
At the same time, coal output was constantly decreasing – from 94.4 million tonnes in 2006 to 75.7
million tonnes in 2011 (by 19.8%). It should be noted, however, that in 2011 the decline in output was
140
stopped. One of the main reasons for this decline was the limitation of enabling works that provide
access to new coal deposits.
Since 2008, coal companies have spent each year higher amounts on investment, including for enabling
works. Capital expenditures oscillated around PLN 2 billion per year on average. In 2011 they amounted
to over PLN 3.3 billion and were PLN 0.7 billion higher than in 2010. PLN 1.0 billion was spent on the
implementation of tasks associated with mined out voids. PLN 1.5 billion was spent on the purchase of
machinery and equipment. Capital expenditures on coal cleaning plants amounted in 2011 to PLN 0.2
billion, for environmental protection PLN 0.03 billion, and for the remaining investments PLN 0.6 billion.
Own resources of entrepreneurs (PLN 2.9 billion) and financial leasing (PLN 0.4 billion) was spent for
the realisation of investment tasks.
Coal sale in domestic market grew in 2011 in comparison to previous years and amounted to 70.5
million tonnes (in 2010 – 64.8 million tonnes and in 2009 64.2 million tonnes).
In the context of growing demand for coal in Poland and limited possibilities of meeting it by national
mines in the recent two years, in 2011 the sale for exports declined significantly, from 10.6 million
tonnes in 2010 to 5.8. million tonnes in 2011. At the same time, coal imports inclined sharply – from 5.3
million tonnes in 2006 to 10.9 million tonnes in 2009, 14.2 million tonnes in 2010 and 14.8 million tonnes
in 2011. It should be stressed that utility energy industry, the main recipient of coal, uses relatively small
volumes of imported coal and almost all demand of this segment is met by national coal producers.
The maintenance of competitiveness of Polish hard coal requires constant efforts aimed at limiting
production costs. However, such costs of coal products are largely determined by specific conditions in
which the mines operate (mainly by natural threats and deteriorating geological and mining conditions).
Nevertheless, 2011 saw a lower dynamics of costs of sold coal than coal sale prices. The average cost
of sold coal increased in comparison with 2010 by 10.0% (to the level of ca. 290 PLN/t), while the hard
coal sale price increased in total by 16.6% (up to ca. PLN 341/t).
The following occurred in coal companies with majority stake of the Treasury in 2011, as compared with
2010:
− Coal output amounted to 75.7 million tonnes and was lower by 0.6%;
− Coal sale grew by 1.1% and amounted to 76.2 million tonnes;
− Total sale price of coal increased by 16.6%;
− The increase in the amount of the sold coal, with simultaneous growth of its average sale price, resulted
in growth of revenues from coal sales by PLN 3.9 billion (to PLN 26 billion);
− As a result of sales increase and with declined production, coal stocks in mining storage sites decreased
by ca. 47% (to 2.1 million tonnes of coal at the end of 2011);
− Average output unit cost increased by 10.2%;
− Employment increased to 114.2 thousand persons (by 0.1%).
− Net financial result amounted to PLN 3 billion (twofold increase)
− Capital expenditures of PLN 3.3 billion were made (higher by 25.2%).
In the 1st quarter of 2012, a growth in coal output by over 5% was recorded (to 19.9 million tonnes from
18.9 million tonnes in the 1st quarter of 2011); the output of steam coal increased by 5.0% (by 0.9 million
tonnes) and of coking coal by 5.7% (by 0.1 million tonnes). The total sale of hard coal amounted to 17.9
million tonnes and was lower by 9.6% than a year before; a decrease in coking coal was more
significant – by 11.7%. The decrease in the total sale volume for energy purposes resulted mainly from
a lower sale to domestic market (by 8.7%).
141
MINISTRY OF ECONOMY
The total sale price in 1st quarter of 2012 amounted to PLN 351.98/tonne and increased in comparison
with the same period the year before by 8.8%.
Table 51 Production and financial results of the hard coal mining companies with majority stateownedsector
1
2
3
4
5
6
Tech.-econ. indicators
Unit
8
9
10
thous. t.
thous. t.
PLN/t
76,154.8
296.9
260.1
2011
2010=100
75,667.8
99.4
296.2
99.8
286.7
110.2
thous. t.
thous. t.
thous. t.
PLN/t
thous. t.
75,404.1
64,781.0
10,623.1
292.4
4.1
76,214.8
70,459.2
5,755.6
341.0
2.2
101.1
108.8
54.2
116.6
52.9
thous. per.
114.1
114.2
100.1
thous. per.
t/work/year
PLN thous./
per capita
-4.8
671
6.0
-0.1
684
6.4
101.9
107.9
Total revenues
mln PLN
25,375.3
29,526.8
Total costs
mln PLN
23,579.0
25,606.2
Net result
mln PLN
1,412.0
2,897.8
Claims
mln PLN
1,988.8
2,819.2
Liabilities
8,594.2
8,467.6
in which: long term
thous. t.
1,420.1
1,241.3
16
Liquidity ratio (3rd grade)
thous. t.
1.22
1.34
17
Net profitability indicator
PLN/t
6.0
11.3
Tech.- econ. Indicators cover KW S.A., KGK, JSW S.A., PKW S.A., LW Bogdanka S.A., ZG Siltech Sp. z o.o.,
Sp. z o.o., PG Silesia Sp. z o.o., while other data for KW S.A., KGK, JSW S.A., PKW S.A., LW Bogdanka S.A.
Source: Mining Department, Ministry of Economy.
Financial results
11
12
13
14
15
Employment
results
7
Coal production, total
Daily coal production, daily
Average unit cost of coal
production
Coal sales, in which:
- domestic market
- exports
Average coal price
Coal stocks in the end of the
period
Employment in the end of the
period
Employment change
Efficiency
Compensation of employees of
mine host
2010
116.4
108.6
205.2
141.8
98.5
87.4
109.8
188.3
EKO-PLUS
Following an agreement with the social party, in July 2011 Jastrzębska Spółka Węglowa S.A. was
privatised by way of listing on Warsaw Stock Exchange. The Treasury disposed of almost 39.5 million
shares of Jastrzębska Spółka Węglowa S.A. for PLN 5.37 billion, but retained majority share. On 1 May
1, 2012, Treasury share in equity amounted to 57.03%. In 2011, the process of creating Grupa
Węglowo-Koksowa on the basis of Jastrzębska Spółka Węglowa S.A. was completed.
9.2.2.
Automotive sector
Automotive industry plays a significant role in the Polish economy, as it introduces a wide range of
innovative solutions to the production organisation and particular products, intended mainly for
exportsexport.
The number of registered passenger cars in Poland reached 17.2 million (the real volume of vehiclecar
fleet can be ca. 2 million smaller). The average vehicle exploitation period in Poland is 14 years. The
number of registered passenger cars per 1000 inhabitants is ca. 450 (slightly lower than EU average).
In general, 2011 saw declines in both passenger car production and in the sale of new cars and imports
of second-hand vehiclescars. The structure of the Polish automotive market and automobile fleet that
142
has been maintained for the last few years does not imply growth of demand for new, well equipped
vehicles. Over twice more second-hand vehicles than new ones are still introduced to the national
market. In 201155, 275 thousand new passenger cars were sold in Poland, a decrease by 12.5% in
comparison with 2010. In the same period, 654 thousand imported second-hand cars were imported to
Poland, i.e. 9.4% less than in 2010. 825 thousand passenger cars and vans were manufactured in
Poland, i.e. 7% less than in 2010.
Poland remains one of the biggest vehicle producers in the region of Central and Eastern Europe.
Among 40 plants carrying out vehicle and engine assembly, as many as 16 are located in Poland.
Despite a still low level of sales of new vehicles on the domestic market, in the period 2001-2010 the
production of passenger cars and light goods vehicles in Poland was dynamically developing. The
production was carried out by four companies: Fiat Auto Poland, General Motors Manufacturing Poland
(previously Opel Polska), Volkswagen Poznań and Fabryka Samochodów Osobowych (FSO). The
products of Polish automotive industry have become the specialty of Polish exports. AboutAround 98%
of passenger cars produced in Poland were intended for exports, among others to Germany, Italy and
France. A breakdown of sales in these markets has therefore had a negative influence on the size of
domestic production. Various incentives – such as scrapping subsidies – introduced among others in
some European countries were an important factor leading to the maintenance, or even increase of
production in passenger car factories in Poland in the period of crisis; it was particularly visible in the
years 2009-2010. A source of positive influence on this situation was also the structure of cars produced
in Poland – small and medium-sized, relatively cheap and requested by customers from Western
Europe. As a result, in comparison with other EU Member States, the Polish automotive industry has
been affected by the World crisis only to a limited extent.
In 2011, 722 thousand passenger cars were produced in Poland (decrease by 9.6% as compared to
2010), and 103 commercial vehicles (significant increase of 17% as compared to 2010). The leader of
Polish producers is still Fiat Auto Poland with production exceeding 467 thousand vehicles and a 56.7%
market share. Subsequent places are held by: Volkswagen Poznań with the production of 177 thousand
vehicles and a 21.4% market share and GMMP (Opel) with the production of 174 thousand and a 21.1%
market share. The biggest production growth, compared to 2010, was reported by Volkswagen Poznań
– by 18.6%. The production of GMMP (Opel) grew by 9.6%. Fiat Auto Poland reported decrease in
production by 12.3%.
Poland is also a significant European producer of buses. MAN Bus, Scania Production Słupsk, Solaris
Bus & Coach, Volvo Polska, Autosan, Jelcz, Solbus and AMZ Kutno produce city and intercity buses as
well as tourist coaches. 4632 buses were produced in 2011, which presents an 11% increase compared
to 2010. MAN Bus remains the largest manufacturer, with its production of 1566 buses (increase by
23.6%). Next places are held by: Solaris Bus & Coach, with the production of 1140 buses and 65
trolleybuses and Volvo Polska with the production of 922 buses (increase by 7.8%).
Poland has also become a European centre of production of automotive components and spare parts
for many World companies. Car engines, 1.9 million of which were produced in Poland in 2011, are also
a Polish specialty.
By the end of 2011 the automotive industry in Poland accounted for 433 entities employing more than 9
employees (by 12 less than by the end of 2010), including 129 entities employing more than 250
people. Producers of parts and accessories for motor vehicles, carrying out activities in 316 entities
(including 110 entities employing over 250 people) were the strongest group. There were 39 entities,
including 15 ones employing more than 250 people, classified among the vehicle producers.
55
IBRM Samar
143
MINISTRY OF ECONOMY
More than 146 thousand people were employed in the automotive industry56 in Poland by the end of
2011, which constitutes about 8.2% of all the employed in the industrial manufacturing sector (5.9%
increase compared to the previous year). Employment in groups of vehicle producers and bodyshell,
trailer and semitrailer producers fell by 2.9% and 4.7% respectively. Employment in the group of parts
and accessories producers grew by 9.5%. The fact that these statistics include enterprises classified in
other industries but producing their products for the automotive sector, such as producers of tires, seats,
wire harnesses and windscreens, makes the number of people employed in companies manufacturing
vehicles and their parts grow up to about 170–180 thousand people.
Despite the crisis, the sector still generated high revenues from the entirety of activities, which by the
end of 2011 reached about PLN 117 billion (in 2010 PLN 98 billion) and were higher by 19.3% than in
2010. It should be highlighted that this sector has almost 11.5% of share in the revenues of industrial
manufacturing companies. Capital expenditures increased significantly at the end of 2011, reaching the
level of PLN 4.6 billion, which accounted for about 12.5% of the total amount spent for investments in
the industrial processing. The yield rate of the net sales for the entire sector stayed at practically the
same level, amounting to 3.6%.
Automotive industry plays a major role in the Polish economy, also as a key exporter, introducing a wide
range of innovative solutions to organisation of production and individual products. The share of
revenue from exports in general revenue was at the level of 71%. The share in the sales of motor
vehicles and engines amounted to 80%. The value of the Polish automotive industry exports in 201157
grew by 10% up to EUR 19.1 billion. The biggest share in Polish exports was held by the group of
manufacturers of passenger cars and vans – value of EUR 6.8 billion, growth by 2.6% compared to
2010, and the group of parts and accessories producers – EUR 6.4 billion, growth by 7.6%. Products of
the Polish automotive industry by the value of EUR 16.1 billion were exported to EU Member States;
this amount is higher by 7.2% than in 2010, but its share fell from 87.1% to 84.6%. Germany was the
largest recipient (12.6% increase with the share of 29.3%), Italy (2% decrease with the share of 13.2%),
Great Britain (35.3% increase with the share of 8.9%) and France (7.5% decrease with the share of
6.6%). Most cars were sold to Italy (25.2%), Germany (19.9%) and Great Britain (12.5%). EU Member
States received 89.1% of the value of automotive parts and components exported from Poland; the
main recipients were Germany (39.5%), France (8.4%) and the Czech Republic (7.7%). Diesel engines
were a strong exports position – their exports grew by 25.2% to EUR 2.5 billion.
Taking into account the present economic situation, in order for Poland to maintain its position on the
global market of automotive industry it is necessary to at least maintain the level of production from
some previous years, i.e. 800-900 thousand cars annually. At the same time, the scheme of this sector
needs to be changed. When constructing their development plans, companies cannot forget about
modern car constructions or innovative technologies, which in the future can become a quality incentive
for new and environmentally friendly concepts of developing road transport. Cars produced in Poland
have to become more attractive for consumers, from the perspective of both economy and technologic
point of view. The improvement of vehicle parameters is also necessary to obtain a competitive
advantage in foreign markets. Automotive industry is a global one. As the Polish automotive industry is
to a large extent globalised, numerous external circumstances, should be currently taken into account,
including those related to the World economy crisis:
− considerable dependence on the economic situation on foreign markets,
− reduction of the European automotive market,
− the necessity to change production plans, also by concerns having production plants in Poland,
56
57
Division – Manufacture of motor cars, trailers and semi-trailers, without motorcycles.
AutomotiveSuppliers.pl
144
− suspension of planned investments and the necessity to restructure production plants,
− danger of production off-shoring (e.g., to Asia or Latin America),
− necessity to introduce ecological and energy efficient technologies,
9.2.3.
Chemical industry sector (including pharmaceuticals)
Chemical industry is one of the stable developing branches of the Polish economy. In 2010 there were
1,751 enterprises operating in the chemical industry58, including 1,400 profitable ones, while in 2011
there were 1,831 entities, including 1,438 profitable ones. The number of employees grew from 220.9
thousand persons in 2010 to almost 225.4 thousand in 2011.
Total revenues in the chemical industry amounted to over PLN 130.6 billion in 2011. The yield rate of
gross sales in the production of chemicals (PKD 20) in 2011 increased to 7.6% from 6.3% in 2010. The
manufacture of rubber products and plastic products (PKD 22) recorded further decrease in yield rate of
gross sales (from 6.0% to 5.3%). Total capital expenditures in the chemical industry increased from PLN
5.3 billion in 2010 to PLN 5.9 billion in 2011.
Chart 40 Employment in branches by each chemical industry sector
Basic chemicals
Plastic products
Pesticides
Paints and
lacquers
Soap and cleaning
products
Fertilizers
Other products
Pharmaceutical
preparations
Ruber products
Pharmaceutical
products
Source: MoE Insigos database, based on CSO data.
Chemical industry develops in a fast and dynamic way. It is a resource base for all sectors of economy
sectors. Chemical products is displacing products made from metal, wooden, glass and natural fibre
products. The machine and metal, automotive, electrotechnical and electronic, construction, paper and
printing, textile and clothing, agricultural sectors are the biggest recipients of the chemical industry
products. Domestic production is not sufficient to cover the demand for chemicals. As a result, negative
balance of exchange with foreign countries gets larger, and the general balance of trade is affected. In
2010, exports in the chemical industry amounted to EUR 15.7 billion, and imports to EUR 23.3 billion; in
2011, exports amounted to EUR 18.9 billion, and imports to EUR 26.7 billion. As a result, the negative
trade balance deepened to EUR -7.8 billion.
According to the Polish Classification of Activities (PKD 2007) the chemical industry is classified in the following sections:
20. Chemicals and chemical products; 21. Basic pharmaceutical substances and medicines and 22. Rubber and plastic
products. The data relate to economic entities employing more than 9 people.
58
145
MINISTRY OF ECONOMY
Chart 41 Gross profitability indices of the branches of chemical sectors
% 15
2009
2010
2011
12
9
6
3
Plastic
products
Ruber products
Pharmaceutical
products
Pharmaceutical
preparations
Other products
Fertilizers
Soap and
cleaning
products
Paints and
lacquers
Pesticides
Basic
chemicals
0
Since 1992, the domestic chemical industry has been implementing the international “Responsible
Care” programme. It is a voluntary initiative of the World chemical industry aimed at establishing the
bases of sustainable development. The programme originates from Canada and consists in
implementation of actions improving activities in the scope of the environment protection, process safety
and the employees' health protection.
Participants in the Responsible Care Programme manufacture over 85% of the World chemical
production. In Poland the programme is implemented at the initiative of the Polish Chamber of Chemical
Industry in 38 economic entities.
tousand PLN
Chart 42 Efficiency indices of chemical sector branches (per 1 employee, thous. PLN)
1,400
2009
2010
2011
1,200
1,000
800
600
400
200
146
Plastic
products
Ruber products
Pharmaceutical
products
Pharmaceutical
preparations
Other products
Fertilizers
Paints and
lacquers
Soap and
cleaning
products
Pesticides
Basic
chemicals
0
9.2.4.
Iron and steel metallurgy sector
In 2011, the iron and steel metallurgy sector59 included 89 business units (3 more than the year before),
which employed 32.4 thousand people on the average during the year (less by 1.4%). Net revenue from
the sale of products exceeded PLN 31.5 billion (28.2% increase), and total capital expenditure
amounted to PLN 873 million (43.8% increase). Gross financial result amounted to almost PLN 960
billion (in 2010 losses exceeded PLN 132 million); 65 enterprises were profitable (14 more than a year
before). In all three groups of the sector, the number of profitable enterprises increased, but gross
financial results varied from group to group. The manufacture of crude iron, ferroalloys, cast iron and
steel and metallurgical products turned the previous year’s loss into profit. A reverse situation was
recorded in the group for the manufacture of steel pipes, lines, structural sections and fasteners.
According to the Polish Steel Association, in 2011 the production of crude steel in Poland amounted to
8.8 million tonnes (with 68% use of production capacity), which constitutes a 9.8% increase compared
to 2010. The share of converter steel (50.4% and 4.42 million tonnes) exceeded for the first time in 3
years the share of electric steel (49.6%). Increase in production in comparison with 2010 was 8.9% for
electric steel and 11.7% for converter steel. Domestic apparent steel consumption (production + imports
– exports) amounted to 11 million tonnes in 2011 (increase of nearly 11%), of which flat products
constituted 55%, long products – 34%, and pipes and sections – 11%. Poland’s share in EU steel
production remains at the level of ca. 5%.
According to the Polish Steel Association, only slight changes occurred in 2011 in the structure of crude
steel production divided into groups – mainly drops in the manufacture of cold processing products. The
manufacture of finished hot processed products amounted to 7.5 million tonnes (9.1% more than in
2010), of which flat products constituted 2.6 million tonnes (34.4%) and long products 4.9 million tonnes
(65.6%). Among cold processing products, slight decline in the manufacture of all types of products
were recorded: 823 thousand tonnes of cold-rolled sheets and strips were produced (3.4% decline), 453
thousand tonnes of galvanised sheets and strips (0.4% decline), 240 thousand tonnes organic-coated
sheets and strips (1.1% decline). The production of steel pipes and sections amounted to 912 thousand
tonnes (8.8% increase), including 505 thousand tonnes of cold-formed closed shapes (11% increase),
242 thousand tonnes of welded pipes and 165 thousand tonnes of weldless pipes.
In 2011, Polish imports of steel amounted to 7.9 million tonnes (15% increase, including a 38% increase
in imports from outside the EU; the largest growth was recorded in imports from China and Ukraine),
and exports from Poland to 4.9 million tonnes (15% increase as well), of which over 88% to the EU. The
deficit amounted to 3 million tonnes of the value of EUR 3 billion (in both cases, 20% increase). The
structure of imports was as follows: flat products 67%, long products 20%, pipes 7% and runners 4%;
the structure of exports: long products 55%, flat products 20%, runners 17% and pipes 6%.
The economic and financial situation of steel sector entities in Poland improved in 2011owing to a
growth in domestic use that resulted from increasing orders from sectors that use steel products.
According to PKD 2007: 24.1 Manufacture of crude iron, ferroalloys, cast iron, steel and metallurgical products; 24.1
Manufacture of steel pipes, lines, structural sections and fasteners; 24.3 Manufacture of other pre-processed metallurgical
products. Entities employing more than 9 people.
59
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MINISTRY OF ECONOMY
In the 1st quarter of 2012 (according to the Polish Steel Association), crude steel production totalled 2.4
million tonnes and was 15% higher than the production in the same period in 2011. Imports of steel
products amounted to 1.9 million tonnes (decrease of 9%), and exports 1.35 million tonnes (increase of
25%). Despite production growth, the sector recorded a negative financial result, due among others to:
high prices of raw materials and energy, weakening demand for steel products (not only in domestic
market), unfair competition and market pressure on prices. If such conditions continue for a longer
period of time, investors may decide to limit production significantly.
The development of the sector, the production volume as well as economic and financial results of
enterprises are related mainly to the situation in the sectors using steel to produce investment goods
(construction – 50% of the share in global steel consumption; manufacture of machinery and
equipment) and consumption goods (manufacture of cars and household appliances). The expected
large domestic consumption of steel due to investments, mainly infrastructural investments in the power
sector, railways and construction is a great chance for Polish metallurgy in the coming years. It is
however not certain that this steel will be manufactured in Poland.
In the recent years, the iron and steel metallurgy sectors in Poland have spent significant financial
resources to modernize existing installations, close excess manufacturing capacity and adjust to the
global market and requirements concerning environmental protection. Despite the fact the sector itself
meets high standards, the approach of the European Commission which does not take into
consideration the Polish specificity of electricity production (almost entirely on the basis of coal)
constitutes a risk for the further development, or even existence of the sector. Installations in other EU
Member States, characterised by much worse parameters, but supplied with electricity generated from
different sources than in Poland, are in a much better situation, e.g. with respect to greenhouse gas
emissions. Moreover, enterprises from the sector are influenced by high and quickly rising prices of
electricity. This can result in global companies moving production from Poland to third countries where
emission limits are less strict or even absent (so-called carbon leakage).
On the basis of information from World Steel Association, OECD estimates that the use of finished steel
products will increase in 2011 by 5.6% and in the years 2012 and 2013 by 3.6% and 4.5%, respectively.
Demand in the EU in 2012 is to decrease by 1.2%, but these forecasts – formulated at the turn of 2011
and 2012 – seem too optimistic today. World production capacity of the steel sector was estimated in
2011 at over 1,963 million tonnes, and is expected to grow by 2014 to 2,130 million tonnes, mainly in
China and India. World apparent steel consumption in 2012 is expected to reach the level of 1,507
million tonnes, which means an increase of only 1% compared to 2011. The diminishing dynamics is
mainly related to slower demand growth in China.
9.2.5.
Electronic sector
The electronic sector60 is one of the fastest developing areas of global economy. It stimulates the
technical, technological and organizational progress and, to a large degree, determines the civilisation
development. It has an impact on economy’s ability to meet the requirements of the global competition
and makes other high potential sectors of the economy develop.
The electronic sector has shown high dynamics of growth for many years and it was the least affected
by the last crisis (even though many entities suffer its effects).
60
Section 26 of PKD 2007 – Manufacture of computer, electronic and optic products.
148
In 2011, there were 318 enterprises employing over 9 people in the electronic sector (10 fewer than in
2010). Their revenues from total activity amounted to PLN 37.6 billion (decrease by 13.1%), and
average employment to 52.5 thousand persons (fall by 4.2%). The gross turnover profitability rate
amounted to 2.6% (close to the year before) and there were 253 profitable entities (4 more than in
2010). Net revenue from the sale of products exceeded PLN 32.5 billion (increase by 11.3% in
comparison with 2010), and total capital expenditures exceeded PLN 825 million (decrease by 2.8%).
In 2011, net revenues from sales of exportable products of the electronic sector (without
microenterprises) exceeded PLN 21.1 billion (10.7% increase compared to 2010), and the purchase
value of imported products reached almost PLN 20.4 billion (9.5% decrease).
In 2011, the electronic sector (without micro-enterprises) had a 3.9% share in net revenues from the
sale of products from the whole industrial manufacturing (in 2010 as much as 5.1%) and 3% in average
employment (in 2010 almost 3.2%).
Although in 2010, the electronic sector was high in the ranking of industrial processing sections both in
terms of increase in sold production and of work efficiency, this result was not repeated in 2011. In 2011
the electronic sector experienced decrease in production, worsening of efficiency indicators and
increase of unit labour costs, even in the situation of decrease in real wages. It can be partly explained
with the so-called high base effect in 2010.
An exports specialty of the sector and one of the specialties of the whole Polish industry are TV sets;
24.0 million were manufactured in 2011 (7.9% less than in 2010). As a result of numerous foreign
investments completed in the recent years, Poland has become a leader in the production of TV sets in
the European Union. Almost the whole production volume is exported, mainly to EU Member States. In
2011, the exports value of TV sets (HS heading 8528 of PCN) amounted to PLN 18.4 billion (decrease
by 16.3% in comparison to 2010) and after four months of 2012 it amounted to almost PLN 5.7 billion
(decrease by 11.5%, as compared to the same month of 2011).
The most important investors in the area of production include: Jabil Kwidzyń (TV sets, electronic
components – until 2004 Philips’ plant), LG Electronics (TV sets and other consumer products) and
three producers of telecommunications equipment: Siemens, Alcatel, and Lucent Technologies. Also,
other companies producing flat TV sets (LCD) invested in Poland, e.g. Sharp, Funai, Humax, JVC,
Orion, Pronox, Toshiba and TPV.
The computer equipment production in Poland is very fragmented and dominated by so called small
assembly enterprises. Small and medium-sized enterprises prevail in the market. Apart from well-known
global makes such as IBM, HP or Dell, there is also a number of recognised domestic trademarks. They
include in particular the following companies: NTT System, Optimus, Action, DTK Computer and Vobis.
Computers, software, telecommunications, electronic office equipment and different types of
subassemblies and electronic technologies are, to an increasing extent, present in other products, thus
offering their users completely new or extended possibilities. Therefore, the significance of electronics
and electronic products for the economy and the society significantly exceeds the share of electronic
goods in the manufacturing output.
149
MINISTRY OF ECONOMY
9.2.6.
Light industry sectors
At the end 2011, 985 enterprises61 operated within light industry sectors62 in Poland (i.e. 4% less than in
the previous year), employing almost 93.5 thousand people (i.e. approx. 4% less than in 2010 [99.8
thousand]). All subsectors faced the decrease in the number of enterprises and employment, and the
largest decrease was recorded in the textile industry, where the number of enterprises decreased by
around 31, and the employment by over 3.8 thousand people, i.e. by 8%.
In comparison to the previous year, in 2011 the number of profitable enterprises fell from 699 to 690, i.e.
70% of all enterprises in the light industry sectors. Only in the textile industry an increase in the number
of profitable enterprises was recorded: from 335 to 342 out of the total number of 498. The gross
turnover profitability rates remained almost unchanged and amounted to 4-5% in individual divisions.
PLN thous.
Chart 43 Labour efficiency per 1 person employed in light industry sectors (in thous. PLN)
250
2010
2011
200
150
100
50
0
Manufacture of textiles
Manufacture of wearing
apparel
Manufacture of leather
Source: MoE Insigos, based on CSO data.
In 2011, labour efficiency per one person employed in the textile industry amounted to PLN 231.25
thousand, and in the leather and clothing industries PLN 199.72 thousand and PLN 103.1 thousand,
respectively. In comparison with 2010, the largest efficiency growth was recorded in the leather industry
(20.9%), and the smallest in the clothing industry (1%).
In 2011, the position of the light industry improved slightly. Total revenues increased from PLN 14.1
billion in 2010 to PLN 15.4 billion in 2011 (8.9% increase); the highest growth was recorded in the
leather and textile industries (21% and 14%, respectively), while the clothing industry recorded a 5%
decrease. Total revenues of the light industry constituted ca. 1.7% of revenues of the whole
manufacturing industry.
In 2011, a slight growth of the share of revenues from exports was recorded. The largest growth was
noted in the textile industry. The share from the sale to foreign partners constituted 49% of the general
revenues (42% the year before). The value for the clothing industry was 39% (35% the year before),
and for the leather industry 47% (44% the year before).
Economic and financial data concern entities employing more than 9 people.
According to the Polish Classification of Activities (PKD 2007) the light industry is classified in the following sections:
13. Manufacture of textile products, 14. Manufacture of clothing, 15. Manufacture of leather and leather products.
61
62
150
Capital expenditures in the light industry in 2011 amounted to PLN 531 million, thus fell by 6%
comparing to the year before. Textile industry enterprises invested much more (26% increase) than
those from the leather industry (9% decrease).
Foreign trade turnover of the light industry in 2011 was the following:
Light industry exports in 2011 amounted to EUR 4,915 million:
- textile
– EUR 1,072 million (12% increase),
- clothing
- leather
– EUR 540 million
(11% increase), including shoes – EUR 472 million (18%
increase).
Light industry imports in 2011 amounted to EUR 7,451 million:
- textile
- clothing
- leather
– EUR 860 million
(17% increase), including shoes – EUR 829 million (15%
increase).
Different aspects of the EU trade policy are still significant in the context of the functioning of the light
industry, with special emphasis placed on trade liberalization, trade barriers and instruments of
promotion. A major problem is limited access to the markets of third countries on the reciprocity basis,
where tariff and non-tariff barriers can be found. For many years there have been attempts to find an
effective way to monitor the flow of “sensitive” light industry goods, which would let anticipate the
dynamics of phenomena and intervene at the right time and place. Another important issue under
discussion in many EU countries concerns the rules of origin and the rules governing the labelling of
products.
At the same time, one cannot forget that it is the European light industry which is the World leader with
respect to the use of technologies, fashion and innovation, which are developing particularly strongly in
the field of technical and industrial textile articles, as well as a high quality of clothing.
Box 19 Task schedule for light industry sectors 2008–2013
In the second half of 2011, a summary of task implementation for the years 2008-2010, resulting from the Task
schedule for light industry sectors 2008-2013, was carried out. The document contains information about
activities taken up in such areas as: research and development, innovation, human capital, simplification and
improvement of the system of legal regulations, environmental protection – sustainable development, access to
capital, sales markets and protection of industrial property. The implementation of assumed tasks improves the
industry's image, which is an important element of the industry's development strategy and its perception
outside.
9.2.7.
Wood-based sectors
Polish wood industry plays a significant role in the development of the entire economy. The most
important wood-based sectors include: sawmill industry, production of furniture, cellulose-paper industry
and production of wood-based panels. The wood industry is scattered and focuses on small and
medium-sized enterprises; there are only a few big entities.
At the end of 2011, there were 1,800 enterprises operating in the wood-based sector and employing
217 thousand people. As compared to 2010, employment decreased by 2 thousand people, and as
compared to 2008 – by 20 thousand people. As a result of a significant number of micro enterprises in
the sector (ca. 30%), data availability is limited. It is however estimated that micro enterprises employ
ca. 40 thousand people, which means that the whole wood industry employs ca. 260 thousand people.
151
MINISTRY OF ECONOMY
The wood industry processes on average over 34 million m3 of round timber purchased from National
Forest Holding (PGL Lasy Państwowe). Despite a difficult situation on the market resulting from a crisis
in World economy, the volume of output sold of the Polish wood industry in 2011 grew in comparison
with 2010 by 15%. The share of this industry in the output of the whole Polish manufacturing industry
amounted in 2011 to 8%.
The overall revenue from business activity in 2011 amounted to almost PLN 77 billion (including:
furniture section PLN 27 billion, paper sector PLN 27.5 billion), which constitutes a 16% increase
compared to 2010. The wood industry’s companies allocated ca. PLN 3.5 billion annually for
investment, including: development of manufacturing capacity and purchase of fixed assets for the
environmental protection.
Compared to other countries, competitive position of Polish wood-based sectors is relatively strong due
to forest and wood resources, as well as the position of Polish furniture and wood-based panels in
global production and trade exchange. Furniture production is a leader in exports (Poland is the 4th
biggest furniture exporter in the World after China, Italy and Germany).
The development of wood-based sectors is also determined by significant conditions on the supply side.
Above all, the availability of domestic wood is important, as well as the prospects to increase
manufacturing capacities of the raw material base.
A rapid growth in demand for wood observed recently has been determined mostly by the extension of
wood raw material market onto EU Member States, i.e. foreign enterprises’ demand and the emergence
of the energy sector on the market. The dynamic demand growth observed recently, alongside with
limited supply growth capacities, results in market imbalance in the form of a deficit in wood raw
material, which should be considered as a permanent situation. This, in turn, influences the
competitiveness of the sector. The imports of wood could only be a partial solution to delivery problems
faced by wood-based sectors due to, first, high transport costs and, second, barriers in the imports of
wood raw material (and wood materials).
The demand on the market of wooden products is increasing due to the development of production
capacity. Transfer of foreign capital in the form of foreign direct investments plays a vital role in this
process. Production of wood-based panels, cellulose and paper, as well as furniture, enjoys the greatest
interest among investors.
The prospects for development of the wood market in Poland in the next years are relatively good.
Generally, a regular growth in demand for most wood materials and final wood products is to be
expected, which is going to cause a slight production growth. It needs to be emphasized that the
development of wood-based sector’s enterprises will be possible only after the stabilization of the wood
raw material market.
The diverse production of the wood industry allows for its significant flexibility, suitable for market
conditions. Such features as basing the production on a natural and renewable raw material, possibility
of recovery and utilisation of wood waste, environmental friendliness make the wood industry products
environmentally friendly, which increases the importance of the sector in the context of implementation
of a sustainable development strategy.
Availability of wood raw material and stability of its prices are main conditions influencing the
competitiveness of the wood industry. Based on them, investors take investment decisions, at the same
time creating new workplaces in the sector. Deficit of the wood raw material on the market and its
increasing price have a strong negative influence on the competitive position of wood-based sectors.
152
10. POLAND'S ENERGY SECURITY
10.1. Situation on the fuel and energy market
10.1.1. Security of the Polish power system
The security of the Polish power system is influenced mainly bybe the level of infrastructure
development. The assets of electricity transmission networks are old, therefore it is necessary to
prioritise the development of investment plans in this field.
Plans prepared by PSE Operator S.A. cover more than 270 tasks; the investments planned for the
2012–2025 period amount to PLN 22.9 billion (including PLN 8.2 billion provided under the Projected
Investment Plan for 2012–2016 until 2016). The investments planned by PSE Operator S.A. together
with the investments planned in the production sector will make it possible to satisfy the growing
demand for electricity, to generate power from new sources and to provide the recipients with energy.
As of 24 April 2012, 56 entities applied for connection to electricity transmission grid with a total
connection power of 23,563.7 MW, including 11 coal installations, 10 gasification installations, 1
installation fuelled with biomass and 34 wind farms – most of these entities agreed on or signed
connection contracts with PSE Operator S.A.
The most important investments of PSE Operator S.A. cover the northern, north-eastern and western
regions of Poland and focus primarily on investments in the field of connecting and generating power
from new generation units, including conventional power plants and RES.
Investments related to the safe operation of the network and its development aim at changing the
voltage of the network from 220 to 400 kV, closing the rings and expanding the transmission grid around
large agglomerations.
Activities in the field of developing cross-border connections aim at increasing the cross-border
transmission capacity. There are plans to develop connections between the network and the
synchronous system functioning in the European Union on the southern and western border of Poland.
10.1.2. Situation of the energy sector in 2011
In 2011, the basic indicators characterizing the energy sector were as follows:
1. Total installed capacity at the end of the year (MW)
out of which power plants:
- public (including RES)
- industrial
153
37,326.9
35,428.5
1,898.4
MINISTRY OF ECONOMY
37,105.2
2. Achievable power at the end of the year (MW)
- industrial
3. Total electricity production (GWh)
- industrial
4. Supplies to final recipients (GWh)
out of which recipients:
- of high voltage (HV)
- of medium voltage (MV)
- of low voltage (LV)
including households and small agricultural holdings
35,340.3
1,764.9
162,923.5
155,096.1
7,827.4
121,942.9
26,483.1
41,829.8
53,629.8
29,412.3
In 2011 electricity exports amounted to 12,022 GWh and imports to 6,780 GWh.
At the end of 2011 the total length of power lines amounted to 787.7 thousand km.
The lengths on particular voltage levels amounted to, respectively:
Total high voltage (HV)
46.3
including:
- highest voltage (750-220) kV
13.5
- high voltage 110 kV
32.8
Total medium voltage (MV)
305.5
Total low voltage (LV)
435.9
Power of network transformers
143.504
thousand km
thousand km
thousand km
thousand km
thousand km
MVA
10.1.3. Renewable energy sources (RES)
The strategic objective of Polish energy policy as regards the growing use of renewable energy sources
is the implementation of the Climate and Energy Package. Development of renewable energy sources
contributes to satisfying the increasing demand for energy and allows for greater degree of
independence from energy imports, which directly translates into improved energy security. The
promotion of the use of RES makes it possible to increase the degree of diversification of energy
sources and to create the conditions for the development of decentralised power industry based on
locally available raw materials.
Table 52 Renewable energy (RWS) share in gross domestic energy consumption in 2005-2011
Source type
Renewable energy output (TWh)
Energy consumption
Renewable energy in the total energy
consumption (%)
Source: Energy Regulatory Office.
2005
2006
2007
2008
2009
2010
2011
3.761
145.7
4.222
150.8
5.23
154
6.493
153.4
8.604
149.5
10.987
156.1
12.473
157.7
2.6
2.8
3.4
4.2
5.8
7.0
7.9
154
Chart 44 Power of RES in 2005-2012
MW 4000
3,518
3,082
3000
2,556
1,993
2000
1,362
1,523
1,678
1,158
1000
0
2005
2006
2007
2008
2009
2010
2011
2012*
* 1st quarter
Source: The Energy Regulatory Office.
Box 20 System of support for electricity production from renewable energy sources
The system of support for electricity production from renewable energy sources exists in Poland since 1 October
2005. In line with the Act – Energy Law designated entities are obliged to obtain and present for cancellation to
the President of the Energy Regulatory Office guarantees of origin of electricity produced from renewable energy
sources or to incur a substitute payment. The system of support introduced in Poland, which is based on the
model of the so-called green certificates, is a market mechanism conducive to optimal development and
competition. The separation of guarantees of origin of electricity produced from renewable energy sources from
physical energy made it possible to trade economic rights resulting from these guarantees on the power
exchange.
This mechanism is supplemented by the obligation to purchase the entire electricity generated from RES by
energy companies functioning as designated energy suppliers connected to the grid in these suppliers’ operating
area for the average electricity sales price in the previous calendar year, established by the President of the
Energy Regulation Office pursuant to Article 23(2) point 18(b) of the Act – Energy Law, which was introduced as
a consequence of separating physical transmission of electricity from the guarantees of origin.
Additional incentives to develop the use of renewable energy sources include:
− lowering the actual costs of connecting to the RSE grid of less than 5 MW by 50%;
− obligation to give priority to transmission of electricity generated from RSE by the operator of the power
system ;
− exempting energy companies generating electricity from renewable energy sources of less than 5 MW
from licence fees and fees for obtaining and registering certificates of origin confirming the production
of electricity from RES.
Exemption of energy generated from RES from the excise duty constitutes an important element of supporting
renewable energy.
Table 53 Energy output from different specific renewable energy sources in 2005 - -2011 (GWh).
2005
Source type
Hydroelectric power- plants
2,176
Biomass power plants
1,345
Biogas power plants
105
Wind farms
135
Total
3,761
2006
2007
2008
2009
2010
2011
2,030
1,818
117
257
4,222
2,253
2,343
162
472
5,230
2,153
3,313
221
806
6,493
2,376
4,888
295
1,045
8,604
2,922
5,879
363
1,823
10,987
2,316
6,601
431
3125
12,473
155
MINISTRY OF ECONOMY
Dynamic development of technologies utilising renewable energy sources contributed to the fact that
providing equal level of support for all types of RES is no longer justified. The risk of oversupporting has
also emerged, which has negative consequences for the entire RES market and for the stability of the
national power system. This situation stimulates the growth of only some of the RES, and as a result
causes the locally available resources to be used suboptimally, blocks the power of the connection for
other technologies and limits the economic growth and the process of creating new jobs. Each
technology which is used to generate electricity from renewable energy sources has different
characteristics, which results in different prices for one unit of produced energy. Some sources are
characterised by high initial (investment) costs, while fixed costs borne during the operation phase are
small. Other technologies require not only a large amount of investment support, but also support during
the operational phase, but in return offer high degree of flexibility and high yearly productivity.
Box 21 Draft Act on renewable energy sources
The entry of the Act on renewable energy sources into force is linked with an obligation to implement the
provisions of Directive 2009/28/EC with regard to e.g. establishing a system of training and qualification for RES
installers. The work in this field includes also transferring and modifying the support elements provided for in the
Act – Energy Law. The main aim of the drafted Act on RSE is to implement a uniform and transparent system of
support for green electricity producers, which would constitute a sufficient investment incentive to create new
energy generation capacity, in particular decentralised generation based on local RES resources.
Planned modification of the mechanism for certificates of origin provides for the introduction of new rules which
would diversify the support, e.g. by applying the so-called correction ratio depending on the renewable energy
carrier and installed capacity of energy generating equipment. The date of putting the plant into operation will
also be important, as support for new investments will be granted for the period of 15 years. More precisely
defined rules of support will contribute to lowering electricity prices, as well as stimulate interest in investing in
those technologies which previously did not receive support. The proposed system will streamline the method of
calculating the amount of substitute payment and will eliminate the risk of uncontrolled, annual increase in the
amount of this payment, resulting in the increase in prices of electricity. An additional regulation ensuring more
effective use of available resources and removal of a barrier related to investment risk would be the introduction
of support system with regard to minimal guaranteed level of income. Stability and long-term character of the
support system will be especially important from the point of view of renewable energy development, so as to
ensure investment security for entities interested in constructing generating units.
Several new measures were introduced in the draft Act. They can be divided into measures stimulating proconsumer activities and the measures facilitating economic activity. The former include e.g. establishment of the
legal framework for the system of support for decentralised generation. It is expected that micro-sources will
develop gradually and systematically and will generate electricity from locally available resources. It will be also
possible to introduce additional incentives for generating green electricity for one’s own needs. Additionally, it is
planned to provide support for units generating heat from RES. Facilitations in the field of conducting economic
activity include: abolition of the concession system for electricity generation in microsources, preferential
treatment in connecting microsources, introduction of flexible and clear rules of providing support for green
electricity generation and introduction of a possibility to obtain a guarantee of origin with regard to green
electricity.
As a result the market mechanism established to ensure equal level of income for all certified producers
of green electricity no longer serves the purpose of an investment incentive in all circumstances. Taking
into account the current trends in the field of RES sector development, amendments to the current
system of support are being prepared and were included in the draft Act on renewable energy sources.
A dynamic growth in the use of biocomponents in transport, triggered by the entry into force of Acts of
25 August 2006 on biocomponents and liquid fuels and fuel quality monitoring and control system,
constitutes and important element of the growing share of renewable energy sources in the national
156
fuel-energy balance sheet. This was caused in particular by the obligation to ensure from 1 January
2008 a specific share of biocomponents on the transport fuels market (the so-called National Indicative
Target – NIT).
The scale of this growth is confirmed e.g. by the fact that the NIT level specified for 2011 was exceeded
(and amounted to 6.24%). In order to better illustrate this development dynamics, one needs to notice
that the share of biocomponents in the transport fuels market in 2007 amounted to only 0.68%, while
already in the first year after the obligation has been introduced, i.e. in 2008, the share increased to
3.66%.
Table 54 Biocomponents – basic data for 2011
Specification
Biocomponents production by all producers
Volume of biocomponents sold domestically
Volume of biocomponents sold abroad
tonne
tonne
tonne
Total
495,665
442,933
37,164
Bioethanol
131,900
86,834
21,399
Esters
363,766
356,099
15,765
Table 55 Liquid biofuels – basic data for 2011
tonne
tonne
140,713
399,427
0
9
2,545
3,376
Esters
(fuelsfuel
by itself)
138,168
396,043
tonne
5,736
0
0
5,736
Specification
Liquid biofuels production by all producers
Volume of liquid biofuels sold domestically
Volume of liquid biofuels used by specific
fleets and for own purposes
Total
Based on
gasoline
Based on
diesel fuel
Provisions of the Act of 27 May 2011 amending the Act on fuel quality monitoring and control system
and certain other Acts made it possible to use diesel fuel containing up to 7% of methyl esters of fatty
acids (the so-called B7 fuel). The Act is a response to the demands voiced by the representatives of the
fuel industry concerning the necessity to make it possible to add more esters to diesel fuel as soon as
possible in order to minimise the costs of implementing the National Indicative Target (NIT), i.e. a
minimum share of biocomponents and other renewable fuels in the total volume of liquid fuels and liquid
biofuels used in transport during the calendar year, calculated on the basis of their calorific value.
At the same time work on draft guidelines for the draft Act amending the Act on biocomponents and
liquid biofuels and certain other Acts is ongoing. Amendment of the Act is meant to transpose the
provisions of Directive 2009/28/EC on the promotion of the use of energy from renewable sources and
amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC into the Polish legal
order, in particular in part concerning the criteria for sustainable development. Furthermore the
provisions of the guidelines introduce e.g. changes in the method of settling the National Indicative
Targets and the possibility to include new types of biofuels in the implementation of NIT. The draft also
provides for the development of new document modelled on the Multiannual programme for the
promotion of biofuels and other types of renewable fuels. The need to develop new programme stems
from amendments made in the Union law with regard to liquid biofuels, and as a consequence makes it
necessary to modify the national legislation in this field. As a result of these changes the entities
functioning on the biocomponents and liquid biofuels markets will have to conduct their activities in
completely new legal and economic environment.
157
MINISTRY OF ECONOMY
10.1.4. Efficiency of the use of energy in economy
The use of primary energy in 2002 reached the level of 89 Mtoe. This was followed by a period of slow
growth lasting until 2009, when a significant decrease took place. In 2010 the use of primary energy
increased to more than 101 Mtoe, reaching the highest value in this decade. The average growth in the
use primary energy in the 2000–2010 period amounted to 1.1%.
The final energy consumption slowly increased after small fluctuations at the beginning of the decade. The
average growth rate in the 2000–2010 period amounted to 1.9%. In the case of final energy consumption
with climatic correction, i.e. taking into account diverse weather conditions, energy consumption growth
rate in the 2000–2009 period amounted to 0.9%63.
Table 56 Average fluctuations of GDP energy intensity indicators (%/year)
Period
2000-2006 2006-2009 2009-2010 2000-2010
GDP final energy intensity
-2.21
-5.21
2.76
-2.64
GDP primary energy intensity
-2.04
-3.76
4.35
-1.94
Source: Energy efficiency in the years 1999-2009, Central Statistical Office, Warsaw, 2012.
Chart 45 Primary energy and final energy consumption
120
Mteo
100
80
60
Primary energy consumption
Final energy consumption with climatic correction
20
10
20
09
20
08
20
07
20
06
20
05
20
04
20
03
20
02
20
01
20
00
40
Final energy consumption
Changes in the structure of the final energy consumption in major economy sectors reflect the directions
of the economy development. The restructuring of industry and activities of enterprises aiming at
lowering the energy intensity (streamlining of consumption due to growing prices of energy carriers)
resulted in the decline in energy consumption in this sector. A constant development of road traffic and
services sector translates into the growing share of these sectors in the national energy consumption.
Due to the introduction of insulating systems and improved and more efficient heating systems, the
household sector recorded reduced energy consumption.
The lack of data for 2010 is a consequence of Eurostat’s decision to temporarily suspend the publication of data on the
number of degree days.
63
158
Chart 46 Final energy consumption in Poland depending by sectors
% 35
30
25
20
15
10
5
0
Industry
Transport
2000
Households
Agriculture
Services
2010
Household energy consumption
The share of energy consumption in households in final energy consumption in 2010 amounted to 32%.
By particular uses, the consumption does not indicate any significant changes. The declining share of
energy use for heating and food preparation is related to the replacement of low-performance coal
stoves with modern gas and electric devices. The growth in the use of electricity for equipment and
lighting results from equipping households in increasingly more advanced electric devices and from the
changes in user behaviour (e.g. change in intensity of using devices such as washing machines,
dishwashers, TV, computers).
Energy consumption in transport
In Poland, almost 95% of energy consumed in transport is used in road transport and approx. 2% in
railway transport. The remaining 3% is consumed by air transport; inland and coastal navigation
consumes negligible amounts of energy. In the 2000–2010 period an annual average growth rate of fuel
consumption in the road transport sector amounted to 7%, while the value of this indicator decreased
visibly (by 28%) in the railway transport sector. Overall, the average annual growth rate of fuel
consumption in the transport sector (excluding air transport sector) amounted to 6.6% in the 2000–2010
period.
Industrial energy consumption
Final energy consumption in industry in the 2000–2010 period showed irregular fluctuations with a
decreasing trend. After breaking the final energy consumption down by types of energy carriers a
decrease in the use of coal and liquid fuels and an increase in the use of natural gas, electricity and
other carriers becomes noticeable. The heat consumption remained at the same level. Smelting,
chemical and mineral industry use approx. 60% of total amount of energy. The greatest decrease in the
share of energy consumption structure compared to 2000 was observed in the smelting industry – by
almost 10 pp; the share of textiles and machinery industry in the energy consumption structure also
decreased. The share of food, timber, paper, chemical, mineral, means of transport and other industries
in the energy consumption structure increased.
The greatest improvement dynamics with regard to energy efficiency were observed in machinery
industry, as well as food, textiles and means of transport industries. The growth was slowest in paper,
timber and other industries.
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MINISTRY OF ECONOMY
Chart 47 Final industrial energy consumption depending by carriers
Mteo
20
Others
15
Heat
Electricity
10
Coal
Natural gas
Liquid fuels
5
0
2000 2004 2005 2006 2007 2008 2009 2010
Energy consumption in the services sector
Energy intensity of added value64 in the services sector fluctuated slightly and in 2010 amounted to a
little more than 0.05 kgoe/euro. Energy intensity of the services sector increased at the rate of 2.1% per
year. At the same time it is the most efficient national income-generating sector in terms of energy
consumption. Electricity intensity of added value increased by 1.1% annually in the 2000–2010 period.
Chart 48 Changes in the energy intensity rate (left axis) and electricity intensity (right axis) of value added
in the service sector
0.06
270
0.05
260
kgoe/EUR00
240
0.03
230
0.02
kWh/EUR00
250
0.04
220
0.01
210
0
200
2000 2001
2002 2003 2004 2005 2006 2007 2008
Energy intensity of value added
2009 2010
Electricity intensity of value added
The energy used by the transport sector is not taken into account when calculating the value of this indicator, though the
calculations do include the added value of transport. A similar procedure is applied with regard to the indicator of energy
intensity of added value.
64
160
10.1.5. European Union greenhouse gas emissions trading scheme
In 2011 the total allocation of CO2 emission allowances under the European Union greenhouse gas
emission trading scheme amounted to 207.2 million tonnes in Poland, whereas the real emissions
amounted to 203.0 million of tonnes and constituted 98% of the allocation of allowances.
Currently, the key issues for the Polish power system in the context of implementing the Climate and
Energy Package are related to the implementation of the consolidated Directive 2003/87/EC of the
European Parliament and of the Council of 13 October 2003 establishing a scheme of greenhouse gas
emission allowance trading within the Community (the so-called ETS Directive), which regulates the
functioning of the system in the 2013–2020 period, i.e. in the 3rd period of its functioning. The key
issues include:
− developing a mechanism aimed at allocating income from the auctioning of emission allowances in
the 2013–2020 period;
− launching a national auction platform in accordance with Commission Regulation (EU) No
1031/2010 of 12 November 2010 on the timing, administration and other aspects of auctioning of
greenhouse gas emission allowances pursuant to Directive 2003/87/EC;
− preparing and submitting to the European Commission by 30 September 2011 the application for
the allocation of allowances free of charge for electricity producers on the basis of Article 10c of the
ETS Directive;
− implementing the Commission Decision of 27 April 2011 determining transnational Union-wide rules
for harmonised free allocation of emission allowances pursuant to Article 10a of Directive
2003/87/EC (2011/278/EU);
− improving the carbon dioxide capture and storage facilities.
According to the ETS Directive, the Member States shall determine the use of revenues generated from
the auctioning of allowances. At least 50% of the revenues generated from the auctioning of allowances
should be used for one or more of the following:
− to reduce greenhouse gas emissions, including by contributing to the Global Energy Efficiency and
Renewable Energy Fund and to the Adaptation Fund as made operational by the Poznan
Conference on Climate Change (COP 14 and COP/MOP 4), to adapt to the impacts of climate
change and to fund research and development as well as demonstration projects for reducing
emissions and for adaptation to climate change, including participation in initiatives within the
framework of the European Strategic Energy Technology Plan and the European Technology
Platforms;
− to increase the use of energy from renewable sources in order to fulfil the Community’s commitment
to achieve a 20% share of energy from renewable sources by 2020, as well as to develop other
technologies facilitating the transition to a safe and sustainable low-emission economy and to help
meet the Community’s commitment to increase energy efficiency by 20% by 2020;
− measures to avoid deforestation and increase afforestation and reforestation in developing
countries that have ratified the international agreement on climate change, to transfer technologies
and to facilitate adaptation to the adverse effects of climate change in these countries;
− CO2 sequestration by forests in the EU;
− the environmentally safe capture and geological storage of CO2, in particular generated by solid
fossil fuel power stations and by a range of industrial sectors and subsectors, including in third
countries;
− to encourage a shift towards low carbon technology and public forms of transport;
− to finance research and development in energy efficiency and clean technologies in the sectors
covered by this Directive;
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MINISTRY OF ECONOMY
− measures intended to increase energy efficiency and insulation and to provide financial support in
order to address social aspects in lower and middle income households;
− to cover administrative expenses related to the management of the Community scheme.
As a result of changes in the European emission allowance trading scheme introduced by Directive
2009/29/EC of 23 April 2009 amending Directive 2003/87/EC so as to improve and extend the
greenhouse gas emission allowance trading scheme of the Community, auctioning of emission
allowances will constitute the standard means of allocating emission allowances in the 2013–2020
period. Therefore it is necessary to establish an efficient auction system based on the rules presented in
Commission Regulation on the timing, administration and other aspects of auctioning of greenhouse
gas emission allowances pursuant to Directive 2003/87/EC of the European Parliament and of the
Council establishing a scheme for greenhouse gas emission allowances trading in the Community.
The Regulation provides for two ways of conducting auctions: the Member States can sell their emission
allowances via a common platform organised by the European Commission in cooperation with the
interested states, or they can choose to use their own auction platforms to sell allowances. On 15
February 2011, it was decided that Poland will use its own national auction platform.
Even though the provisions of the ETS Directive do not provide for any free allowances to electricity
producers, in practice it is possible to temporarily waive the obligation to buy 100% emission allowances
with regard to electricity producers. Free emission allowances for the production of electricity may be
granted to installations for electricity production which were operational as of 31 December 2008 or to
installations for electricity production with regard to which the investment process was physically
initiated before that date, provided that one of the following conditions is met: the first and the second
condition are related to unsatisfactory degree of integration of the national grid with the grid operated by
the Union for the Coordination of Transmission of Electricity (UCTE, from 1 June 2009 replaced by the
European Network of Transmission System Operators for Electricity – ENTSO-E), while the third
condition introduces a 30% threshold for dependence on a single fossil fuel and a level of the GDP per
capita below 50% of the EU average (Poland fulfils the third condition).
Considering the special conditions which have an impact on our economy, Poland’s Energy Policy until
2030 emphasises the use of coal as a means of ensuring its energy security. Coal is particularly
important e.g. for the Polish energy sector, because almost 90% of the demand for electricity and 77%
of the demand for district heating is satisfied based on coal, which gives Poland one of the highest
levels of stability in terms of energy security among all EU Member States.
However, such a high share of coal in Poland’s energy balance results in high emissions of harmful
substances into the atmosphere, which, in the light of e.g. the Climate and Energy Package, makes it
necessary to invest in low emission technologies for the generation of energy, such as e.g. Clean Coal
Technologies (CCT).
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Box 22 Mechanism of allocating free emission allowances
Precise instructions on the operation of the system are included in the Decision of 29 March 2011 on the
methodology of transnational allocation to installations generating electricity of free emission allowances
pursuant to Article 10c(3) of Directive 2003/87/EC (K(2011) 1983) and the Communication: Guidance document
on the optional application of Article 10c of Directive 2003/87/EC (2011/C 99/03).
The Decision provides a detailed description of the manner of calculating free allowances for installations
generating electricity and allows the Member States to decide if free emission allowances are to be allocated on
the basis of historical data or the earlier adopted indicator. The Communication, on the other hand, provides
guidelines on preparing a derogatory application, the National Investment Plan as well as the interpretation of a
“gradual” transition towards full auctioning in the energy sector by 2020.
In order to be able to apply the derogation with regard to the power industry and use all allowances which can be
allocated to the energy sector, on 30 September 2011 Poland submitted to the European Commission a
derogatory application containing the National Investment Plan with planned investments amounting to approx.
EUR 45 billion. The National Investment Plan may include investments, the execution of which:
− indirectly causes a reduction in emission level,
− does not result in satisfying an increasing demand for electricity and only causes reconstruction of
withdrawn capacity,
− does not result from other legal regulations (EU Directives),
− contributes to changing the fuel structure (energy mix),
− ensures the diversification of energy sources,
− reduces the level of emissions generated during energy production,
− will be profitable after 2020 (without the allocation of free emission allowances).
Box 23 CO2 capture and storage technology
The development of CCS technology is currently at an early stage and therefore solutions must be found to
reduce the high costs of its application and to facilitate the shift from small experimental facilities to industrial
ones. Another problem consists in the lack of sufficient experience in injecting CO2 to storage locations, e.g. in
saline formations or depleted oil or gas reservoirs, or below the seabed. In addition, there is no infrastructure for
CO2 transport or neutralisation. However, it is impossible to carry out a reliable assessment of the CCS
technology without conducting prior commercial-scale tests. To this end, the European Commission plans to
launch a Demonstration Programme and build 10–12 CCS facilities in the EU. The programme concerned
provides for the opening from 2015 of a specific number of full-scale power plants equipped with a process line
ranging from carbon dioxide capture, through transport, to storage. According to Commission’s estimates, the
Demonstration Programme will be conducted in 2015–2020. Only after its results are collected and examined
will it be possible to assess the actual potential of CCS technologies. Poland’s proposal with regard to the
above-mentioned Programme is a project to build an 858 MW Unit with a CO2 capture and storage installation in
Bełchatów Power Plant of PGE Górnictwo i Energetyka Konwencjonalna S.A. This project was supported with
the amount of EUR 180 million granted under the European Economic Recovery Plan (EERP). However, due to
higher investment and operational costs related to the use of CCS technology, it is necessary to search for
additional sources of financing. The European Commission proposed to provide 300 million free allowances from
the reserve for new entities (the so-called New Entrance Reserve – NER 300), in order to implement projects in
the field of CCS technology and innovative RES. Poland entered the Bełachtów project into the contest for
obtaining co-financing under NER 300. The results of the contest are planned to be published before the end of
2012.
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10.1.6. Nuclear Power
The priorities of Polish energy policy in the field of nuclear power were defined in the document entitled
“Poland’s Energy Policy until 2030”, adopted by the Council of Ministers on 10 November 2009. On 13
January 2009 the Council of Ministers adopted the Resolution No 4/2009 on actions undertaken for the
development of nuclear power. According to this resolution, at least two nuclear power plants will be
built in Poland and at least one of them should begin its operation before 2020.
At the same time Government’s Plenipotentiary for Polish Nuclear Power prepared a draft Polish
Nuclear Power Programme, which includes a detailed plan of activities which are to be implemented
before 2020, with a possibility to extend this deadline to 2030, and which are necessary for the
introduction of nuclear power in Poland. The final version of the draft, together with the results of
strategic assessment of the Programme's environmental impact, will be submitted to the Council of
Ministers for adoption in 2nd half of 2012.
On 1 July 2011, the following legal acts entered into force:
− Act of 13 May 2011 amending the Act – Nuclear Law and certain other Acts (Dz. U. No. 132, item
766) and
− Act of 29 June 2011 on preparation and implementation of investments related to nuclear power
facilities and associated investments (Dz. U. No. 135, item 789).
Box 24 “Poznaj atom” (“Get to know the atom”) information campaign
Obtaining public support for the use of nuclear power constitutes one of the most important factors influencing
the probability of successful implementation of nuclear power in Poland. Public opinion polls have shown each
time that the society knowledge about nuclear power is insufficient, which contributes to the fact that support for
or opposition against nuclear power is based on feelings, and not on solid factual data. The public opinion on
nuclear power should be based on knowledge and reliable information. That is why an information campaign,
covering e.g. TV and radio advertisements and an information website dedicated to the campaign –
www.poznajatom.pl – was launched in March 2012. The campaign also made use of opportunities offered by the
social media (Facebook, blogs, Tweeter, YouTube). Measures such as organising meetings and debates with
representatives of local communities, publishing press articles, conducting educational activities aimed at
secondary school children (exemplary lessons, an educational movie, a video game) will continue until May
2014.
The development of nuclear power industry in Poland would be impossible without an adequate
scientific and research base. Acknowledging the key role of science in implementing the nuclear power
the Minister of Science and Higher Education devoted PLN 50 million for the purpose of implementing
the strategic project entitled Technologies supporting the development of safe nuclear power. On 5
January 2012, the relevant contests ended with the selection of 10 research tasks, which will be
implemented during the period of the next 24–36 months. The national research institutes are active in
Poland and abroad and are taking part in all scientific and research initiatives related to nuclear
sciences – mainly in large nuclear research centres, such as CERN or Dubna. At the same time the
establishment of National Nuclear Research Centre65 on 1 September 2011 aimed at integrating and
strengthening the Polish nuclear research centres, which up to this point were characterised by
significant degree of fragmentation.
Ordinance of the Council of Ministers of 5 August 2011 concerning the merger of Andrzej Sułtan’s Institute of Nuclear
Studies with the Institute of Atomic Energy POLATOM (Dz. U. of 2011, No. 173, item 1032).
65
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Furthermore, it is also necessary to take action in the field of developing human resources for the
purposes of nuclear power industry, in order to ensure effective and safe construction and operation of
nuclear power plants, and, in the longer term, also closing them down. In this context the plan covers
not only the opportunities on the higher education level (currently the Polish universities offer between
ten and twenty different fields of studies/specialisations directly related to nuclear power), but also on
the upper secondary level (professions such as nuclear power technician, nuclear chemical technician,
nuclear mechanical technician). It has to be borne in mind that approx. 80% of a nuclear power plant
staff consists in personnel which is not obliged to hold a degree awarded by a higher education
institution.
The next step within the framework of comprehensive policy in the field of nuclear power is the
preparation of a plan concerning handling radioactive waste and depleted fuel. The plan includes e.g.
activities related to creating a new landfill for low- and medium-level radioactive waste (due to the fact
that the previous landfill has been filled) and guidelines on managing high-level radioactive waste (and
depleted fuel).
Poland also participates in the process of exchanging experiences with the World’s most developed
countries in the field of nuclear power and nuclear technologies (cooperation with Euratom, IAEA).
Poland has been a member of the OECD Nuclear Energy Agency since 18 November 2010. Poland is
also involved in other international initiatives, such as IFNEC (the International Framework for Nuclear
Energy Cooperation), GTRI (Global Threat Reduction Initiative – the transport of depleted fuel from
Polish experimental reactors away from Poland to Russia is carried out under this initiative – in 2012 the
entire depleted fuel stored in Poland has been taken away and currently only the fuel utilised in MARIA
reactor will have to be exported), SNETP (Sustainable Nuclear Energy Technology Platform).
10.1.7. Security of the oil sector
Poland’s security is based on stable sources of crude oil and the development of oil companies,
ensuring continuity of fuel supply and the creation of crude oil and liquid fuel reserves. Due to Poland’s
geographic location and its transmission infrastructure, Russia still remains its primary supplier of crude
oil (21.8 million tonnes, 91.8%, 1st quarter of 2012 – 5.7 million tonnes, 96.4%). Supplies of crude oil
from this direction are made through the “Przyjaźń” pipeline, owned and operated by Przedsiębiorstwo
Eksploatacji Rurociągów Naftowych Przyjaźń S.A., a company owned by the State Treasury. Capacity
of the pipeline along its section between the border with Belarus and the city of Płock amounts to 50
million tonnes of crude oil per year. It is expected that the pipeline's third line will be completed under
the PERN “Przyjaźń” S.A. strategy for 2010–2015 to ensure that the capacity of this section will be
sufficient to fully supply the company's clients.
The imports of crude oil in 2011 amounted to 23.7 million tonnes (1st quarter of 2012 – 5.9 million
tonnes), whereas the exports of crude oil amounted to 0.2 million tonnes (1st quarter of 2012 – 0.05
million tonnes). Consumption of crude oil (processed in refineries) in 2011 amounted to 24.0 million
tonnes (1st quarter of 2012 – 5.9 million tonnes), out of which PKN ORLEN S.A. refinery in Płock
processed 14.5 million tonnes (1st quarter of 2012 – 3.6 million tonnes), and LOTOS S.A. Group refinery
in Gdańsk processed 9.1 million tonnes (1st quarter of 2012 – 2.2 million tonnes). Considering the
consumption of crude oil refining products in Poland in 2010, one can assume that present capacities of
Polish refineries are sufficient to meet the demand for petrol, light and heavy heating oil, and more than
80% of the demand for diesel fuels.
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Alternative infrastructure for crude oil supplies is provided by the port in Gdańsk. Its throughput capacity
amounts to 34 million tonnes of crude oil per year, which fully secures the national demand by sea.
When it comes to final products, the transmission and storage infrastructure comprises, among other
things, fuel depots and fuel terminals, product pipelines, railway transport and road tank car transport.
On 10 November 2009 the State Treasury and Przedsiębiorstwo Eksploatacji Rurociągów Naftowych
(PERN) “Przyjaźń” S.A. concluded an agreement on the transfer of State Treasury shares from
“Operator Logistyczny Paliw Płynnych” Sp. z o.o. to PERN “Przyjaźń” S.A. The objective of the transfer
of State Treasury shares from OLPP to PERN was to consolidate key logistic enterprises in liquid fuel
branch. Thus, a capital group Grupa Kapitałowa PERN “Przyjaźń” S.A. was created, which will
contribute to decreasing the operational costs borne by both of these companies. Merging both
enterprises within the capital group is also beneficial for the provision of national energy security (OLPP
was established in 2006 in order to provide access to liquid fuels logistic infrastructure to all oil market
participants and create conditions for the development of the liquid fuel logistic system).
The largest domestic company in the oil sector is Polski Koncern Naftowy ORLEN S.A., which has one
of the newest and most modern refineries and petrochemical complexes in Europe. Orlen also owns,
among others, ORLEN Deutschland, refinery in Mažeikiai in Lithuania - AB Mazeikiu Nafta, and is a
majority shareholder of Kopalnie Solino in Inowrocław and Czech Unipetrol, which comprises, among
others, refineries in Kralupy and Litvinov and a distribution company Benzina. The most important tasks
which contributed to the development of the extraction sector in 2011 included, among others:
− Continuing the implementation of exploratory-reconnaissance project in the Latvian economic zone
of the Baltic Sea shelf (including preparations for the drilling of exploratory hole). At the end of 2011
the technical unit initiated the selection procedure for the future boreholes. Projects of boreholes
were developed and in 2012 ORLEN Upstream will probably conduct the first exploratory drilling.
The project undertaking carried out in the Latvian economic area of the Baltic Sea allows ORLEN
Upstream to increase its competences and gain experience in conducting offshore activities;
− Implementing the first stage of Sieraków project, consisting in preliminary identification of the
deposit and drilling the first borehole (another exploratory drilling is planned for 2012);
− Prospecting for and extracting hydrocarbons at designated concession areas in south-eastern
Poland (“Basen Lubelski” project). Key tasks realised in the framework of this project in 2011
included assessing the integrated data and verifying knowledge about the geological structure of
this region, as well as developing recommendations with regard to potential locations for exploratory
drilling.
Grupa LOTOS S.A. is the second largest entity operating in the oil sector. Rafineria Gdańska (Gdańsk
refinery), which belongs to the group, has a processing capacity of approx. 10.5 million tonnes per year.
On 28 March 2011 the implementation of “Program 10+”, an investment programme which made it
possible to increase the refinery's processing capacity from 6.5 million to 10 million tonnes, ended.
Grupa LOTOS includes the extraction company LOTOS Petrobaltic and LOTOS Exploration and
Production Norge AS. In December 2010 LOTOS Petrobaltic took over AB Geonafta, a company which
extracts crude oil on the territory of the Republic of Lithuania, which will allow LOTOS Petrobaltic to
increase its production capacity (raw material extraction) by approx. 50%. On 3 February 2011
documents concerning the acquisition of 100% of shares in Geonafta by LOTOS Petrobaltic were
signed in Vilnius.
Security of fuel supplies to the market is regulated by the Act of 16 February 2007 on stocks of crude
oil, oil products and natural gas, and the rules of conduct in a situation of potential threat to fuel sector
on a nationwide scale and disruptions in the oil market. The Act, alongside with implementing acts,
specifies measures to counteract disruptions in oil and fuel supplies, enunciating their activation
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procedures and implementation mechanisms. Pursuant to this Act, oil and fuel (including LPG) trading
or manufacturing companies are obliged to create and maintain obligatory stocks. According to data
from 1st quarter of 2012, the level of obligatory stocks of crude oil and liquid fuels amounted to 5.5
million tonnes – this amount, together with state-owned stocks, fully satisfies the European Union’s and
IEA’s requirements with regard to the level of stocks.
On 14 June 2011, PERN “Przyjaźń” S.A. put two oil tanks in the Adamowo fuel depot with capacity of
more than 200 thousand m3 into service. The investment is a part of the company’s strategy to increase
Poland’s energy security. A preparatory procedure for carrying out investments to build fuel tanks in the
following locations has also been triggered:
− In the Gdańsk fuel depot (2 x 100 thousand m3),
− In the Mieszewek Strzałkowski fuel depot (2 x 100 thousand m3).
Furthermore, on 15 June 2011, Grupa LOTOS S.A. and PERN “Przyjaźń” S.A. signed a Letter of intent
concerning joint construction of storage caverns, i.e. underground crude oil and liquid fuel storage
tanks. According to their plan, the caverns will be built in the Pomorze (Pomerania) region. The
construction of crude oil and liquid fuel storage tanks with total capacity of 7 million m3 is planned to be
implemented in two stages by 2020. In September 2011 an Investment Committee was established within
LOTOS S.A. Group – the Committee is responsible primarily for supporting the statutory bodies of GK GL S.A.
companies by issuing opinions and recommendations concerning investments, divestments and
discontinuation of investments in the context of the implementation of the strategy of the LOTOS group.
10.1.8. Security of the gas sector
The level of extractible resources of natural gas from national deposits amounted to 91.9 billion m3
(converted to methane-rich gas). The structure of natural gas supplies on the Polish market in 2011 was
as follows:
− Domestic extraction – 4,447.9 million m3 (converted to methane-rich natural gas), including gas
from coal bed methane extraction;
− Imports from the East – 9,549.1 million m3;
− Other imports (Germany, the Czech Republic) – 1,625.4 million m3.
In 2011, the level of domestic consumption of natural gas amounted to 15,134.8 million m3.
In 2011 the Polish natural gas market was dominated by the “Grupa Kapitałowa Polskiego Górnictwa
Naftowego i Gazownictwa” group. PGNiG S.A. is a market leader in trade in natural gas and the main
importer of natural gas to Poland, as well as the largest Polish company in natural gas prospecting and
extraction sector. The company has a license to trade in gas fuels, licences to trade in foreign natural
gas and a license to store gas fuels. PGNiG S.A. company has 96.4% of shares in natural gas sales on
the domestic market, whereas the remaining 3.6% belongs to from 10 to 20 other entities, which
progressively strive to expand and increase their market share. The largest entities (aside from GK
PGNiNG) in terms of sales volume in 2011 include: EWE Energia Sp. z o.o., G.EN.GAZ ENERGIA S.A.,
KRI S.A., Handen Sp. z.o.o.
Obligatory and marketable stocks
The active capacity of underground methane-rich gas storage facilities amounts to 1,816 million m3
and 230 million m3 in nitrogen-rich gas storage facilities (PMG Daszewo – 30 million m3 and PMG
Bonikowo – 200 million m3), which corresponds to approx. 12% of annual consumption of this gas in
Poland. In 2011, pursuant to Article 24(2) of the Stocks Act, obligatory stocks of natural gas were
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MINISTRY OF ECONOMY
maintained by a single company – PGNiG S.A.; the stocks amounted to 530.1 million m3 in the
period from 1.10.2010 to 30.09.2011 (which corresponded to at least 15 days of average daily
imports) and to 555.8 mln m3 in the period from 1.10.2011 to 30.09.2012 (20 days). Obligatory
stocks are kept in KPMG Mogilno, PMG Husów and PMG Wierzchowice. In 2011 PGNiG S.A.
continued its activities in the field of expanding the existing and creating new storage capacity under the
Programme for developing active PMG capacity, consisting in e.g. expanding the active capacity of
PMG Wierzchowice to 1,200 million m3 (2013) and expanding the active capacity of PMG Husów to 500
mln m3 (2014). Implementation of underground gas storage facilities expansion projects will significantly
contribute to improving the national energy security through the creation of strategic stocks to be used
in emergency situations.
Transmission system operator
In Poland, transmission activities are carried out by OGP Gaz-System S.A, a company wholly owned by
the State Treasury included on the list of companies of special importance for the Polish economy,
which manages the national transmission network and is responsible for the security of natural gas
supplies via transmission networks, as well as further development of this network. The company owns
100% of shares in Polskie LNG S.A., which is responsible for the construction of the LNG terminal in
Świnoujście. In 2011 OGP Gaz-System S.A. operated a network of gas transmission pipelines, whose
total length amounted to approx. 9.853 km.
Furthermore, on 25 October 2010, while implementing the provisions of an inter-governmental
agreement between Poland and Russia, OGP Gaz-System S.A. signed an agreement with System
Gazociągów Tranzytowych EuRoPol Gaz S.A. on entrusting the obligations of operating the Polish
section of the Yamal pipeline. On 17 November 2010, OGP Gaz-System S.A. was entrusted with this
task (until 31 December 2025).
On 8 July 2011 the President of ERO approved the new tariff of SGT EuRoPol GAZ S.A. until the end of
2011. Following the approval of ITGOM SGT on 31 August 2011, the operator launched the procedure
of making the SGT capacities free under the so-called virtual reverse mechanism in October 2011. In
2011 OGP Gaz-System S.A. transmitted approx. 380 million m3 of gas under the reverse principle
transmission service on SGT.
SGT EuRoPol GAZ S.A. is the owner of the Polish section of the gas pipeline running from Russia to
Western Europe through Belarus and Poland. Shareholders in SGT EuRoPol Gaz S.A. include: OAO
“Gazprom Export” (48%), PGNiG S.A. (48%) and Gas-Trading S.A. (4%). The length of the Polish
section of the gas pipeline is 683.9 km; it runs through Poland from the Polish- Belarusian border near
the town of Kondratki to the Polish- German border near the town of Górzyca. In 2011 the Polish section
of this pipeline transmitted approx. 23.1 billion m3 of natural gas for OAO Gazprom Export and approx.
2.66 billion m3 for PGNiG S.A.
Storage system operator
In 2009 PGNiG S.A. was appointed as the operator of the system of gas fuels storage under the name
of PGNiG S.A. OSM Division. On 16 May 2012 an administrative proceedings concerning the issuing of
a license for storage of gas fuels in storage installations to PGNiG S.A. OSM Division ended, and on 22
May 2012 the decision designating the company as a storage system operator for the period from
1.06.2012 to 31.05.2022 was issued. OSM is responsible for ensuring the proper functioning of storage
installations, for implementing the contracts signed with users and for operation, maintenance and
conservation of storage installations and equipment.
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Distribution systems operators
Distribution activities in GK PGNiG are performed by six regional gas companies. These companies are
responsible for supplying gas fuels to home, industrial and wholesale recipients, as well as for operating,
repairing and expanding their gas pipelines. In 2011 the overall length of distribution network managed
by gas companies amounted to 117.77 thousand km, and natural gas was supplied to approx. 6.61
million recipients.
Prospecting for and exploration of unconventional natural gas deposits
According to data contained in the report of the Polish Geological Institute (PGI) published on 21 March
2012, the resources of unconventional natural gas deposits in Poland are estimated to amount to 1.92
trillion m3. Nevertheless, taking the estimation parameters into account, it can be assumed that these
resources amount to between 346 billion and 768 billion m3. In 2011 unconventional gas was
prospected on approx. 12% of the territory of Poland. According to data from the end of the year, the
total number of licences for prospecting and identification of unconventional hydrocarbon deposits
granted by the Minister of Environment amounted to 111 (including 109 licences for shale gas + 2
licences for tight gas). Polish companies hold 30 licences for prospecting for and exploration of
unconventional sources of hydrocarbons: PGNiG S.A. – 15 licences, LOTOS Petrobaltic S.A. – 7
licences, Orlen Upstream Sp. z o.o. – 8 licences. In 2011 drilling of 22 boreholes have started, of which
18 were completed.
Development of interconnections
The primary component of ensuring the energy safety of the country is diversification of sources and
directions of natural gas supplies. In order to increase the level of diversification of sources and
directions of natural gas supplies, following actions were taken in 2011:
− continuation of the construction of the liquefied natural gas (LNG) terminal in Świnoujście. The initial
regasification capacity of the terminal is planned at 5 billion m3 per year, with a possibility of being
increased to 7.5 billion m3 per year.
− establishing a gas connection with Scandinavian deposits – the project of a pipeline is currently at a
pre-investment stage;
− development of the connection with Germany near Lasów. This investment contributed to increasing
the supply of natural gas from the Western direction by approx. 0.5 billion m3 per year, reaching a
total amount of approx. 1.5 billion m3 per year;
− implementation of the so called virtual reverse service on the Polish section of the Yamal gas
pipeline – from November of 2011;
− building a new connection with the Czech Republic near Cieszyn. Implementation of this investment
made it possible to supply Poland with approx. 0.5 billion m3 of gas per year;
− network interconnection: Poland – Lithuania and Poland – Slovakia (analytical stage).
In 2011, owing to implemented investments (new connection in Cieszyn, development of the existing
connection in Lasów) and the launch of the virtual service on the Yamal gas pipeline, technical
capacities for imports of natural gas to Poland from new directions, alternative to the East, increased by
approx. 3.3 billion m3 per year, which amounts to approx. 30% of the gas previously imported to Poland.
Development of the national transmission system
Transmission system is developed by OGP Gaz – System S.A., which carried out investment work in
2011, including modernisation work and repairs which overall amounted to approx. PLN 480 million.
Strategic investment projects include e.g.: building of Świnoujście – Szczecin, Szczecin – Gdańsk and
Szczecin – Lwówek pipelines and finalising the building of Włocławek – Gdynia pipeline.
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MINISTRY OF ECONOMY
10.2. Identifying threats
The situation of the power sector stems from the evaluation of its individual sub-sectors’ condition. Each
of them is characterized by specific operational chances and risks. The following, however, are
considered to be important for the entire sector, and consequently for Poland’s energy security:
− condition of the infrastructure;
− burdens caused by high levels of CO2 emissions.
The main challenge faced by the Polish energy sector is the need to invest in new production and
transmission capacities. Average age of the distribution network infrastructure ranges from 27 to 35
years, and the transmission network infrastructure is even older. The property owned by companies
managing the power transmission system is advanced in years. The 80% of 220 kV power lines, 23% of
400 kV power lines and 38% of all transformers are over 30 years old. Only 1% of 200 kV power lines,
21% of 400 kV power lines and 28% of all transformers are less than 20 years old. Currently the
operability of transmission network components is ensured by conducting regular repair work with
regard to facilities constituting the property of the transmission network and eliminating equipment (and
components) considered to be prone to malfunctioning. At the same time in the coming years it will be
necessary to invest both in the production sector and in network infrastructure.
The companies which currently operate in the energy sector present specific investment plans in the
field of electricity production within the framework of their operational strategies. In light of these
strategies between 2011 and 2025 the quality of transforming from transmission network to distribution
network will be improved and will amount to more than 17,000 MW; it will also be possible to generate
approx. 25,000 MW of power from new production sources which are planned to be constructed. Taking
into consideration the plans presented above and the implementation of the Polish Nuclear Energy
Programme, three Polish energy groups (Polska Grupa Energetyczna – PGE, TAURON, Enea) are
planning to develop nearly 80% of all planned new capacity in the next 15 years.
Another important issue, upon which the development of this sector and, indirectly, also the entire
economy are conditional, is the burden caused by high CO2 emissions. Poland is a country with a
relatively low GDP per capita compared to EU average and for several decades will remain on a fast
track of economic growth in order to compensate for this difference. This trend, however, will result in
increased demand for primary energy, estimated by the International Energy Agency at approx. 20% in
2008–2030.
These conditions, as well as the lack of technological possibilities to significantly change the fuel
structure in Poland in a short-term perspective (Poland's coal-based economy has one of the highest
emission levels in the EU) are the reasons why an additional reduction of emissions in Poland in the
2020 perspective may turn out to be difficult.
Modernisation of power units in power plants and CHP plants, construction of new flue gas
desulphurisation and dedusting facilities, as well as the use of biomass and fossil fuel co-incineration
technology facilitated a reduction in emissions of pollutants, mostly dust and SO2. There are fears
however, that Poland may not fulfil its commitments to the EU in terms of reducing the negative impacts
of the energy sector on the environment. New technological solutions, including Clean Coal
Technologies, and a change in the structure of primary energy carriers to replace the existing ones with
low-emission one, will be necessary.
170
The new (third) trading period under the EU Emissions Trading Scheme will bring many changes in the
EU ETS Directive. In principle, electricity producers will no longer be entitled to free allocation
(allowances will be auctioned). An exception will be made for Member States covered by the so-called
derogation under Article 10c of the Directive. On 30 September 2011 Poland submitted to the European
Commission a derogatory application for allocating free CO2 emission allowances to the Polish energy
sector in the 2013–2020 period. It contains e.g. the list of electricity-generating installations together
with a proposed number of emission allowances for these installations. It also presents proposal relate
to modernisation investments in the energy sector. On 13 July 2012 The European Commission
approved Poland’s application for allocating free emission allowances to the Polish energy sector after
2012 (allowances for more than 404 million tonnes of C02 emissions).
The actual scale of impact of the Climate and Energy Package adopted by the European Council in
December 2008 on the national economy is to the large extent determined not by the provisions of the
Package, but by the means of implementing EU Directives related to the package, as well as guidelines
and decisions of the European Commission. One example is the designation of benchmarks by the
European Commission, according to which free emission allowances are distributed among the
installations. The benchmarks provided for in Commission Decision determining transnational Unionwide rules for harmonised free allocation of emission allowances, published on 17 May 2011, were set
at a too low level, and as a consequence may weaken the competitiveness of companies using fuels
which generate more emissions than natural gas in their production processes, leading to liquidation of
a large part of EU industry, including Polish industry. Therefore on 7 July 2011 Poland, having regard on
the jobs in the Polish industry, among other things, applied to the Court of Justice of the European
Union for the annulment of this decision in whole.
Furthermore, the European Commission in its Communication entitled A roadmap for moving to a
competitive low carbon economy in 2050 proposes to tighten the reduction requirements even further.
The basic risk for energy security in the oil sector in Poland is the low level of crude oil supply
diversification. It is justified to strive to increase crude oil supply from various regions of the World and
from various suppliers using alternative transport routes. One part of reducing the risk consists in the
attempts made by Polish enterprises to gain access to own crude oil deposits abroad and a planned
increase in domestic production. Completion dates for consecutive stages of the “Construction of the
Brody–Płock Oil Pipeline and its possible extension to Gdańsk or westwards” project (which is a part of
the EAKTRN Project), as presented in a timeline attached to the Application for Co-Funding and in the
Feasibility Study for the Brody–Płock Pipeline Construction project are very tight, which may threaten
their timely implementation.
An increase in the exports capacity of crude oil of the largest supplier of this raw material – Russia,
related to the construction of BTS-2 pipeline and aiming at increasing the exports of Russian oil via the
port in Primorsk, may as a consequence lead to limiting the transport capacity of the “Przyjaźń” pipeline.
The system of maintaining intervention stocks of crude oil and fuels (Act of 16 February 2007 and work
on the new act on crude oil and liquid fuels intervention stocks financing), as well as joining the
International Energy Agency by Poland (25 September 2008) contributed to a significant improvement in
Poland's energy security.
In Poland there is no real possibility of fuel switching in case of crisis. Instability of crude oil prices, not
always caused by economic factors, also constitutes a risk factor.
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MINISTRY OF ECONOMY
Strengthening the national refining sector lies in the interest of Poland. As a result of significant
investments in refineries development and modernisation realised in Poland in the recent years, the
situation in that regard is better than in Western Europe, where oversupply of production capacity
resulted in a bankruptcy or close-down of several large refineries. Therefore it is necessary to consult
the position of Poland on proposed EU regulations concerning the refining industry with the
representatives of this sector.
The gas sector is still to a significant extent dependent on supplies of natural gas from the East (more
than 85% of total imports). As a result in order to ensure the energy security of the country it is
necessary to further diversify the sources and directions of natural gas supplies by implementing the
following projects:
− construction of LNG terminal for liquefied gas in Świnoujście;
− implementation of the projects related to inter-system connections (interconnections) allowing for
the possibility of two-directional gas flow;
− development of domestic transmission infrastructure on the previously non-gasified territory;
− expansion of the existing and construction of new storage capacities;
− increase in the level of domestic extraction; and
− prospecting for and extraction of gas from non-conventional deposits.
In October 2010, in line with Regulation (EU) No 994/2010 of the European Parliament and of the
Council concerning measures to safeguard security of gas supply and repealing Council Directive
2004/67/EC, the European Commission introduced the instruments necessary to ensure an adequate
EU response in a crisis situation caused by discontinuation of gas supplies. Meeting the obligation
imposed by the above-mentioned provisions, the Risk assessment related to the security of natural gas
supplies to Poland was prepared. This assessment identified, on the basis of past and possible future
events, the most important threats to the security of natural gas supplies and analysed various
scenarios of gas supply disruption due to infrastructural, political and market-related risks. This analysis
constitutes the basis for the preparation of a Preventive Action Plan and an Emergency Plan.
Box 25 The National Programme for the Development of Low-emission Economy
Regardless of work related to the Climate and Energy Package and Road map 2050 Communication, steps were
taken to prepare the National Programme for the Development of Low-emission Economy, aiming at providing
economic, social and environmental benefits (in line with the principle of sustainable growth) from low-emission
transformation. These benefits will be generated e.g. by increasing innovativeness and implementing new
technologies, reducing energy intensity and creating new jobs – as a consequence they will be conducive to the
improvement of the economy's competitiveness within the 2050 timeframe. Transferring the economy to lowemission economy, and therefore reducing the emissions of greenhouse gases and other substances, is
considered to be not only a crucial step towards environmental stability, but also a component of a long-term
sustainable development strategy. During the work on the programme a mechanism for verifying the global
effectiveness of undertaken activities will be implemented, which will make it possible to ensure that emission
reduction objectives will be met on the territory of Poland by transferring high emission and energy intensive
production to third countries and therefore will not contribute to increasing global emissions.
The guidelines for the above-mentioned Programme were adopted by the Council of Ministers on 16 August
2011. The main aim of the Programme is to develop low-emission economy while ensuring sustainable
development of the country. The guidelines also set out certain specific objectives:
− developing low-emission energy sources;
− improving the energy efficiency;
− improving the efficiency of resources and materials management;
− developing and using low-emission technologies;
− preventing waste generation and improving the efficiency of waste management;
− promoting new models of consumption.
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11. CONSTRUCTION
11.1. Gross value added and sold production of construction
industry
11.1.1. Macroeconomic conditions of sectors’ dynamics and production volume
Construction is one of the basic sections of national economy. Due to its universal character, it is an
inseparable part of economic and social activity. Investment activity of economic entities and the
economic situation of the population are the key factors that create demand for construction services,
and consequently the development of construction as a section of economy.
In general, the value and dynamics of gross fixed capital formation has an impact on gross value added
of construction. In 2011 gross fixed capital formation was by 8.1% higher and the gross added value in
the construction sector by 11.8% higher than in the previous year. Capital expenditures increased by
10.8%, and expenditure for buildings and structures by 3.1%, in the analysed period.
Chart 49 Changes of gross fixed capital formation and gross value added in the construction sector in
the years 2008-2011 (in % compared to the previous year, in constant prices)
% 15
11.8
11.6
10
9.6
8.1
6.4
5.8
5
0
-0.4
-1.2
-5
2008
2009
Gross value added
2010
2011
In the 1st quarter of 2012, an increase of gross fixed capital formation by 6.7% and of gross value added
by 9.6% was recorded in construction.
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MINISTRY OF ECONOMY
11.1.2. Dynamics and structure of construction and assembly output
In 2011, gross value added generated in the construction sector amounted to PLN 105.5 billion, which
accounted for 7.9% of total gross value added (compared to 8.1% in 2010 and 7.5% in 2009). It
increased by 11.8%, compared to a growth of 6.4% in 2010 and 11.6% in 2009.
Following a decline in 1st quarter of 2010, gross value added in construction gradually recovered in
subsequent quarters. The upward trend continued in 2011. In 1st quarter of 2011, the growth amounted
to 14.3% and in 2nd quarter of 2011 to 16.6%. Subsequent quarters of 2011 saw a decrease in the
growth rate of the value added, which amounted to 12.0% in the 2nd quarter of 2011 and 7.0% in the
fourth quarter. In the 1st quarter of 2012 gross value added in the construction sector was 9.6% higher
than in the analogous period of the previous year.
Chart 50 Changes of gross value added in the construction sector in the years 2008-2012 (in % compared
to the corresponding quarter of the previous Lear; in constant prices).
%
20
15
11.6
10.2
11.0
10
16.6
14.3
12.0
14.1
9.2
10.4
9.6
6.0
5
9.6
7.4
7.0
4.4
0
-1.1
-1.2
-5
2008
2009
1q
2010
2q
3q
2011
2012
4q
In 2011, the sales of the construction and assembly output of all construction companies was by over
12% higher compared to the previous year, against an increase of 4.6% in 2010 and of 5.1% in 2009. In
2011 the sale of construction and assembly output (in entities employing more than 9 persons)
amounted to PLN 97.1 billion, which marks a growth of 16.3% compared to 2010. The sales of repair
works increased by 20.5% and of investment works by 14.2%. The share of investment work in
construction and assembly output declined by 1.2 percentage point (to 65.3%) compared to 2010.
A growth of the construction and assembly output was recorded in all its sections. The growth was
particularly high (29.8%) in companies performing mainly specialist construction works and in entities
building civil engineering and hydro-engineering structures (25.9%). In companies performing building
construction the growth amounted to 2.0% (including in companies specialising in the erection of
residential and non-residential buildings – 0.5%). From among companies building civil engineering and
hydro-engineering structures, the growth of production was particularly high (36.1%) in the case of
companies specialising in works related to construction or roads and railways, while among companies
performing specialist construction works, production increased the most in the case of companies
performing other specialist construction works (by 55.9%) and finishing construction works (by 45.6%).
In 2011 the share of civil engineering and hydro-engineering structures, including mainly motorways,
express roads, streets and other roads, in the structure of construction and assembly production has
increased compared to 2010.
174
Table 57 Dynamics and structure of sold construction and assembly production in companies employing
more than 9 people in 2010-2011
Total
in which:
− construction of buildings
− construction of civil engeenering
− special construction works
Source: Central Statistical Office
2010
2011
previous year = 100
103.5
116.3
2011
share (%)
100.0
100.0
102.8
101.8
107.7
43.6
35.1
21.3
102.0
125.9
129.8
2010
38.1
38.1
23.8
11.2. Residential construction
11.2.1. The general situation of residential construction sector
Housing has for many years been one of the most important social and economic issues in Poland,
despite the changes that took place in this area over the last several dozen years. Although the number
of flats built has doubled compared to the situation 15 years ago, the needs of the society are still
cannot be satisfied. In addition, turmoil in the global economy in the last three years also affected the
situation in the sector.
Housing needs of Poles are not directly translated into real demand. This is a result of both a mismatch
of demand and supply on the market, in terms of price and other characteristics of dwellings (area,
location), and the current uncertain macroeconomic situation. In 2011 the trends on the labour market
and the salaries were not conducive to decisions on costly long-term investments, such as purchase of
flats. The lack of certain employment and permanent income not only formally reduces the possibility to
obtain additional financing, e.g. mortgage loans, but also leads to concerns about additional burden for
the domestic budget.
Apart from macroeconomic indices, the situation on the housing market in 2011 was also determined by
regulatory and legal factors. In 2011, the so-called Recommendation S entered into force. It is a set of
good practices on mortgage-secured lending exposure financing real estate. It has a real impact on the
mortgage loan market by tightening the terms and conditions for granting such loans which may result in
reduced demand for flats. The Act on protecting the rights of the buyer of a flat or a single family house
(Dz. U. of 2011 No 232, item 1377), the so-called property developing act, has been in force since 29
April 2012. Its main task is to protect the interests of customers. The new regulations will significantly
reduce the risk for customers who often sign agreements with developers before the flats are handed
over. The Act imposes additional obligations on developers, such as the requirement to keep a trust
account or conclude preliminary agreements in the form of notarial deeds. It also specifies what
happens to the funds of the buyer in the case of the developer's bankruptcy. Uncertainty related to
purchase of a dwelling which is not yet built will be markedly reduced by solutions imposing an
obligation of developers to provide the customers with a prospectus with essential information about the
project and the implementing company and the information about the investments planned within the
radius of one kilometre from the flat. However, the costs of new legal and financial solutions may affect
the final value of transactions and increase charges for customers.
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MINISTRY OF ECONOMY
The government scheme “Rodzina na swoim” [Family in its Own Home] was changed in 2011. The
limits on the prices of flats eligible for the scheme were reduced. An age limit of 35 years was
introduced (however, the limit does not apply to single parents). The possibility to apply for a loan was
offered to persons who are not married and do not have children.
Apart from the available data on the number of completed flats or building permits, the assessment of
the situation in the housing sector should also take account of the situation on the sale market,
increasing requirements for borrowers, incomes of the population and the mismatch between supply
and demand. Due to the financial situation of Polish families, flats are still expensive and the structure of
available flats offered at prices acceptable by customers is not satisfactory. The number of conflicts
between investors, contractors and subcontractors is increasing and the number of disputes, payment
gridlocks and even bankruptcies is on the rise not only in the case of motorway and road construction.
11.2.2. Residential construction in 2011
2011 was the third year in a row to see a decline in the number of new flats. Slightly over 131,000 flats
were commissioned within that period, i.e. ca. 4,600 (or 3.5%) less than in 2010. The decline in the
number of new flats affected the majority of construction sectors: flats for sale or rent, co-operative
housing, social tenement housing and council housing. The only increase was posted by individual
housing.
Table 58 Number of flats commissioned by business type in 2009-2011
2009
Number of
2008=100
flats
Total
160.019
96,9
Individual
72.210
86,6
For sale or rent
72.098
108,1
Cooperative
7.260
84,0
Social
3.600
112,3
Communal
4.202
154,5
Corporate
649
112,5
Source: Residential housing in 2011, Central Statistical Office.
Type
2010
Number of
2009=100
flats
135.818
84,9
70.444
97,9
53.505
74,0
5.052
69,6
3.021
83,9
3.506
83,4
290
45,1
2011
Number of
2010=100
flats
131.148
96,5
73.065
103,7
49.584
92,7
3.864
76,5
1.901
60,8
2.420
70,8
314
108,3
In 2011 over 184,000 of building permits for flats were issued, out of which 175,000 for flats to be built in
93,000 new blocks of flats. The construction of over 162,000 flats started, which marks a growth of over
4,000 compared to 2010.
In 1Q12 36,000 flats were commissioned, i.e. 32.0% more than in 1Q11 and building permits for 38,000
flats were issued, compared to 36,000 in 1Q11. This period saw an increase in the number of flats
under construction – up to 31,365 flats, i.e. 1.3% more than in the analogous period of 2011.
176
11.3. Assessment of the construction industry performance
There is a certain ambiguity as to the overall situation of the construction industry in 2011. The
construction sector in Poland recorded a higher growth of its output than a year before (by 16.3%
compared to 3.5% in 2010), which was one of the best results achieved in the EU. In 2011 the growth of
construction and assembly production was higher than in the previous year. The number of completed
new flats was still declining, but on a lesser scale than in the previous year. The higher number of
construction permits and flats under construction are positive signals for the future.
Business tendency surveys for the construction industry conducted by the Central Statistical Office at
the end of 2011 showed that during the majority of months of 2011 the overall assessment of business
tendencies was negative. Low indicator levels were recorded in the first months of 2011 and, after a
slight improvement of the overall business climate in the middle of the year, in December the indicator
dropped to its lowest level in 2011. This was mainly caused by unfavourable ratings of the present and
future contract portfolio, the construction and assembly output and the financial situation. Small and
medium-sized enterprises (employing up to 249 people) were the most negative in their assessments of
their economic situation. The entrepreneurs declared they would further reduce employment and
expected the prices for construction and assembly works to decline.
Results of the construction industry are strongly influenced by various barriers, which hinder the
completion of contracts. The percentage of enterprises that do not experience any barriers to the
construction and assembly activities amounted to 3.8% in December 2011 (and to 3.1% in December
2010). The greatest barriers reported by enterprises were related to the employment costs (57% in
December 2011, 50% in December 2010) and the competition on the market (55%, compared to 54%).
Compared to December 2010, the barriers whose importance grew the most included uncertain overall
economic situation, costs of materials, high charges for the budget and employment costs.
High growth of construction and assembly output in 2011 was mainly the result of an increase in
enterprises building civil and hydro-engineering structures (construction of motorways and express
roads) and those performing specialist works. The trend continued in 1Q11 and was due to the
construction of roads and facilities related to preparations for the European Football Championship in
Poland in June 2012.
The data analysis shows, however, that in 2012 the growth rate decreases month to month, which may
indicate the deterioration of the results in the 2nd half 2012. The financial standing of construction
companies also deteriorates. At the end of 2011, the construction sector generated the net turnover
profitability rate of 2.3%, while in 1Q11 the rate amounted to minus 1.0%. An increasing number of
construction companies report problems with recovering payments for performed works and services
and delays in payment for subcontractors. In 1Q12, over a half of construction companies did not
generate any profits.
It is important to note that the year 2012 was the period where large road investments related to the
European Football Championship were finalised and settled. This involves not only large infrastructural
projects, such as extension of train stations, airport terminals, railway and road infrastructure, but also
smaller projects carried out by private investors. In the coming years, the sector will have to face new
challenges. The continuation of essential infrastructural projects and plans for construction of new
power blocks provide an opportunity for new contracts. However, 2013 and 2014 may prove difficult for
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MINISTRY OF ECONOMY
many construction companies, in particular small and medium-sized ones, which specialize in
subcontracting of infrastructural projects.
Therefore, the diversification of activity is necessary, as is the identification of segments where the
demand is likely to increase. The lack of new contracts should not affect enterprises specialising in
assembly of steel structures, in construction related to environmental protection and offering specialist
works in energy sector construction. The construction of the so-called small power generation facilities,
i.e. wind farms, biogas plants and biomass installations, is also considered a segment with good
prospects for the future. Moreover, an increased demand may be expected in commercial and industrial
construction, as well as water management construction. Some construction companies, although
probably mainly the large ones, may extend their activity by seeking markets abroad, in particular in the
countries of Central Asia.
The situation on the housing market also has an impact on the condition of the construction sector. In
2011, the criteria for participation in the Rodzina na swoim scheme and for granting mortgage loans
were tightened. The Act on protection of the rights of buyers, which imposes an obligation on property
developers to open trust accounts, was also adopted. However, what remains unchanged is the high
demand for flats and the fact that the offer of developers and housing cooperatives sometimes fails to
meet the expectations in terms of both the prices and other aspects, such as the floor area of flats. The
overall macroeconomic situation, which affects the incomes of potential buyers, is an important
determinant of the situation in the sector.
178
12. SERVICES SECTOR
12.1. Value added (market and non-market services)
The services sector in Poland makes the largest contribution to the gross value added and the GDP
(approx. 63%).66 However, Poland is still below the OECD average which is over 70%. Changes in the
structure of Poland’s services sector maintained their tendency toward the structure observed in OECD
countries, where market services67 participate in around 50% of value added in the economy and nonmarket services68 in around 20% (in Poland in 2010 - 50.1% and 14.7%, respectively, and in 2011 48.1% and 14.6%, respectively).
In 2011, the gross value added in the services sector amounted to PLN 838.5 billion in current prices,
including approx. 76.8% in the market services sector and 23.3% in the non-market services sector. In
constant prices, the increase in gross value added in the market services sector in 2011 amounted to
1.7% (in 2010 to 3.3%), and in the non-market services sector to 0.8% (in 2010 to 3.1%).
12.2. General characteristics of the services sector
In 2011, according to the business breakdown structure (the number of businesses registered in
REGON system), the same percentage of enterprises operated in the services sector as in the previous
year - approx. 76%69.Among them, more than 99% were private companies, mostly operating in: trade
and repair of motor vehicles (more than 1.1 million enterprises), professional, scientific and technical
activity (336,000 enterprises) as well as transport and warehousing (253,000 enterprises).
The services sector70 is dominated by micro-enterprises employing up to 9 persons, which constitute
96.7% of the sector. 3% of enterprises operating in the sector employ between 10 and 49 persons and
large enterprises account for almost 1% of the sector. Micro-enterprises by far outnumber other entities
both in the market services sector (over 97%) and in the non-market services sector (almost 85%).
Central Statistical Office (GUS), Poland - Macroeconomic Indicators (according to the PKD 2007 classification). The data
concern gross value added of the economy in current prices.
67 In sections: (1) Trade; repair of motor vehicles, (2) Transportation and storage, (3) Accommodation and food service
activities, (4) Information and communication, (5) Financial and insurance activities, (6) Real estate activities, (7)
Professional, scientific and technical activities, (8) Administrative and support service activities, (9) Other service activities.
68 In sections: (1) Public administration and defence, compulsory social security; (2) Education; (3) Human health and social
work activities; (4) Arts, entertainment and recreation.
69 Central Statistical Office, Structural changes in groups of entities in the national economy entered into the REGON register
in 2011, Warsaw 2012.
70 According to PKD 2007.
66
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MINISTRY OF ECONOMY
Table 59 Services sector’s economic entities by ownership and section of Polish Classification of
Activities 2007 in 2010-2011*
2010
Public
sector
Market services
Wholesale and retail trade…
Accommodation and food service activities
Real estate, renting…
Professional, scientific and technical activities
Administrative and support service activities
Non-market services
2011
Private
sector
Public
sector
Private
sector
394
601
847
51
123
42,513
2,068
179
1 100,209
264,602
123,367
94,967
131,090
152,871
330,163
93,973
377
586
827
49
118
43,036
2.007
173
1 059,664
252,234
121,472
100,513
127,344
159,635
334,815
95,918
10,664
16,333
10,755
16,319
Public administration and defence…
47,141
68,991
46,567
71,336
Education
7,050
178,958
7,091
186,174
Healthcare
* Concerns companies registered in REGON system.
Source: Central Statistical Office, Structural changes in the groups of entities in the national economy in 2011, Warsaw 2012.
Compared to 2010, the average employment in the services sector grew in most sections (a decrease
was recorded in the non-market services subsector). The highest growth – by 6.3% - was recorded in
professional, scientific and technical activity. The growth of employment in the largest section of market
services, i.e. trade; repair of motor vehicles, amounted to approx. 2% compared to the previous year.
Table 60 Average employment in services sector (thous.)*
Market services
Wholesale and retail trade…
Accommodation and food service activities
Real estate, renting…
Administrative and support service activities
Non-market services
2009
2010
2009=100
2011
2010=100
1,093
469
111
160
262
111
207
269
1,093
470
117
160
259
113
214
304
100,0
102.1
105.4
100
98,8
101.8
103.4
113
1,118
476
124
166
264
119
228
315
102.2
101.3
105.8
103.9
101.6
105.3
106.3
103.8
627
640
102
628
98.1
Public administration and defence…
1,027
1,024
99.7
1,022
99.8
Education
624
632
101.2
630
99.8
Healthcare
* Concerns companies registered in REGON system. Does not concern budgetary entities in national defense and public
security.
Source: Central Statistical Office, Employment and wages in national economy, I-III q of 2011, Warsaw 2012.
180
12.3. Trade and repair
The trade and repair sector is among the most important ones in terms of the share in value added
generated. In 2011, this share grew slightly compared to 2010 (by 1.2 pp) to 20% in the entire
economy71.
Table 61 Economic entities from Trade and repairs section by number of employees and Polish
Classification of Activities divisions in 2009-2011**
Number of
employees
2009
Number of
entities
2010
Number of
entities
2009 = 100
2011
Number of
entities
2010=100
Wholesale and retail
trade, repairs of motor
vehicles, motorcycles
and personal and
household appliances
(Sec. G)
total
1,073,154
1,100,603
102.6
1,060,041
96.3
0-9
1,036,877
1,064,282
102.6
1,024,182
96.2
including:
10-49
32,323
32,408
100.3
31,993
98.7
50-249
3,547
3,508
98.9
3.456
98.5
250-999
342
351
102.6
348
99.1
1000 and more
65
64
98.5
62
96.9
Sales, services and
total
132,188
142,497
107.8
142,710
100.1
repairs of motor vehicles
0-9
128,410
138,635
108.0
13,8860
100.2
and motorcycles; retail
10-49
3,344
3,427
102.5
3,431
100.1
sales of motor fuels.
50-249
411
411
100.0
395
96.1
250-999
21
21
100.0
21
100
2
3
150.0
3
100
1000 and more
wholesale and resale
total
271,319
280,692
103.5
277,174
98.7
trade *
0-9
254,351
263,736
103.7
260,382
98.7
10-49
15,004
15,004
100.0
14,867
99.1
50-249
1,770
1,755
99.2
1,725
98.3
250-999
174
177
101.7
178
100.6
1000 and more
20
20
100.0
22
110
retail trade *
total
669,947
677,414
101.2
640,157
94.5
0-9
654,116
661,901
101.2
624,940
94.4
10-49
13,975
13,977
100.0
13,695
98
50-249
1,366
1,342
98.2
1,336
99.6
250-999
147
153
104.1
149
97.4
1000 and more
43
41
95.3
37
90.2
*Abbreviated name.
**Concerns companies registered in REGON system.
Source: Central Statistical Office, Structural changes in the groups of entities in the national economy in 2011, Warsaw 2012.
In terms of the number of entities, employment and value of exports, the trade and repair section is the
largest subdivision of the services sector in Poland. In 2011, 1,060 thousand enterprises operated in
this area (3.7% less than a year before), which constituted 27.3% of entities in the entire economy
(28.2% in 2010 and 28.7% in 2009).
71
Central Statistical Office (GUS), Poland - Macroeconomic Indicators (PKD 2007).
181
MINISTRY OF ECONOMY
As in the previous year, micro-enterprises employing up to 9 persons are the dominant group in this
section72, accounting for 96.7% of all entities in the section. In terms of ownership this section is
homogenous – private sector entities constitute almost 100% of all entities and these are mainly natural
persons conducting a business activity.
In 2011, the average monthly gross salary in the trade and repairs section grew by 5% to PLN 3,267.34
(from PLN 3,110 at the end of 2010) and constituted approximately 96% of the average monthly gross
salary in the entire economy (excluding annual bonuses). A lower average salary in the section
compared to the entire economy is mainly the result of the salaries in microenterprises operating in retail
trade, where salaries are traditionally among the lowest in the services sector.
Table 62 Employment in Trade and repairs sector (by Polish Classification of Activities divisions) as of
the end of 2011*
Specification
Number of employees
31.12. 2010
31.12. 2011
thous. 31.12. 2009 =100
thous. 31.12. 2010 =100
1,138
102.7
1,158.7
101.8
Trade and repairs In total, including:
sales and repairs of motor vehicles and
motorcycles, sales of motor fuels
97
107.9
100.0
wholesale and resale trade
450
97.2
435.4
retail trade, repairs of personal and household
appliances
591
102.8
582.1
*Concerning companies employing more than 9 people.
Source: Central Statistical Office, Employment and wages in the national economy in 2011, Warsaw 2012.
105.7
98.3
104.7
The trade and repair section maintained its fundamental economic indicators at the level from the
previous year. In 2011, total revenues73 increased by 10.7%, while total costs by approx. 11%,
compared to over 4.3% and approx. 4%, respectively, in the previous year. The net financial result of
the section (PLN 18.8 billion) declined by almost 4% against a growth of almost 6% in the entire
economy. It is worth noting that the overall net financial result for the section in 2011 was higher than in
the years 2008-2009. The sector recorded a slight decrease in average profitability indicators for net
and gross turnover and for sale of products, goods and materials. The same indicators for the entire
economy slightly improved in 2011.
In 2011, the overall debt of economic entities grew by over 15% (compared to 8% in the previous year).
In the same period, the debt of trade and repair companies increased by approx. 11% to over PLN 200
billion (PLN 180 billion in the previous year).
Central Statistical Office, Structural changes in groups of entities in the national economy entered into the REGON
register, Warsaw 2012.
73 Based on information included in the INSIGOS database on enterprises employing more than 9 persons.
72
182
12.4. E-Commerce
E-commerce74 is merely a small segment of the Polish retail and wholesale market, but it is growing
fast. In 2010 the net value of sales revenues, made on-line or through automatic data exchange,
amounted to PLN 324 billion (PLN 87 billion more than in 2009), which constituted almost 11% of total
sales revenues (8.1% in the previous year). 75 According to a comparative analysis of the Centre for
Retail Research, on-line trade in Poland in 2011 accounted for only 3% of retail sales, which gives
Poland the place ahead of only Italy in the rating. Poland is, however, considered to be the most
promising market in this regard with the forecast growth of 24% in 2012.76
The access to Internet is becoming more widespread, as evidenced by the data on access of
households to broadband Internet. Although Poland is catching up fast and is already ahead of such
countries as Italy, Spain and Hungary, it has not yet reached the EU-27 average (according to Eurostat,
in 2011 Poland was still 6 pp behind). The situation among enterprises is better, with 94% of them
having access to Internet in 2011, which is 1 pp below the EU-27 average.
In 2011, 42.3% of employees of enterprises used computers in their work at least once a week (and
35.2% used computers with Internet access), with the percentage of employees using a computer at
least once a week in large companies being almost 9 pp higher than in small enterprises. This leads to
the conclusion that the awareness of advantages of using computers and the Internet is still insufficient
in small companies, especially that the shares of companies which own computers is similar (96.5% of
small, 99.1% of medium-sized and 99.6% of large enterprises). In terms of Internet access, the
indicators are as follows: 94.8%, 99% and 99.5%, respectively.77
According to the data of the Central Statistical Office, in 2011 95.7% of enterprises, i.e. 1.4 pp less than
a year before, owned computers, 93.9% had Internet access, and 78% had access to broadband
Internet. The highest growth of broadband Internet access was recorded among small enterprises (by
21 pp). In 2011, companies most often (81.8%) used the DSL broadband connections, with wireless
connections via computers with 3G modem being less popular (28.9% of enterprises), as were the cable
TV networks (23.8% of enterprises) and handset 3G connections (15.2%).
An own website is an efficient tool for communication with customers. In 2011, 64.7% of analysed
enterprises had their own websites with main purpose to present products and prices. The indicator is
slightly higher than the EU-27 average, which in 2010 amounted to 67%. It should be noted that the
differences among the EU countries are significant, with the highest percentage recorded in Sweden 89% and the lowest in Romania, where only 35% of enterprises had their own websites.
E-commerce, both in B2B (business-to-business) relations and also B2C (business-to-consumers)
relations, is a modern, dynamically expanding market. In 2010, as in 2009, approximately 16% of
enterprises made orders via computer networks, using websites (14.6%) and EDI messages (3.0%).
Those enterprises most often chose suppliers from Poland (84.6%). Despite additional outlays required
74 According to the definition by the Central Statistical Office, electronic trade includes transactions carried out by IP-based
networks and other computer networks, also using the Electronic Data Interchange standard. Goods and services are
ordered electronically but payment and delivery of the ordered goods or services may take place in any form (also outside
the web).
75 ICT usage in enterprises in 2010, Central Statistical Office, Warsaw 2011.
76 Online Retailing: Britain and Europe 2012, Centre for Retail Research, http://www.retailresearch.org/onlineretailing.php
77 ICT usage in enterprises in 2010, Central Statistical Office, Warsaw 2011.
183
MINISTRY OF ECONOMY
to launch on-line sale, an increasing number of companies choose this form of transactions. In 2011,
one in ten enterprises received orders on-line. 78
Electronic invoices are becoming increasingly popular. One in three companies in Poland in 2011 had
dealt with electronic invoices (30.5% of entities). The most popular form was an e-invoice that cannot be
processed (e.g. an e-mail with an attachment). Automatic data exchange is increasingly important for
exchange of information between various entities. In 2011, 66% of enterprises used automatic data
exchange.
Open source software is gaining more and more popularity among enterprises. In 2011, 78.0% of them
used such free software (mainly Internet browsers, office applications).
The bigger an enterprise, the greater its willingness to get involved in e-commerce. Already over 40% of
large enterprises place orders via computer networks, what should be linked to the above-mentioned
high level of Internet access. The value of purchases made by large companies accounts for 49.4% of
the total. The share of revenue of large companies generated by on-line sales and automatic data
exchange in their total sales revenue increased from approx. 14.8% in 2009 to 16.1% in 2010. For small
and medium-sized companies the same indicator amounted to 6.6% and 6.7%, respectively, in 2010.79
E-administration remarkably improves the functioning of enterprises and is an Internet service most
often used by enterprises. In 2010, 92.0% of companies communicated with public administration online.
The development of e-commerce is still hindered by high costs of professional software, i.e. integrated
IT systems, and, from the regulatory angle, by the lack of unambiguous legal regulations with regard to
e-commerce, inter alia those concerning deliveries, payments and tax issues. On the other hand, more
and more often companies try to remedy the situation: as of January 2011, 20.8% used free operating
systems. It is remarkable however, that the share of large companies that use such solutions (65.5%) is
much higher than the share of small (16.5%) and medium-sized ones (32.4%). 80
12.5. Transportation and storage
In 2011, the transportation and storage section81 generated (in current prices) 12% of gross value
added in the market services sector and 6% in the entire economy (14.8% and 7.4%, respectively, in
the previous year).
In 2011, the growth of gross value added (in current prices) in transportation and storage amounted to
7% and was lower than in the previous two years (growth of 9% in 2008 and 11% in 2010). The number
of the employed in the section amounted to almost 482,000 persons at the end of 2011, which is 0.7%
more than a year before.
Concise Statistical Yearbook of Poland 2011, Central Statistical Office, Warsaw 2012.
ICT usage in enterprises in 2010, Central Statistical Office, Warsaw 2011.
80 Ibidem.
81 According to PKD 2007.
78
79
184
Table 63 Important economic and financial data for the section of transportation and storage by Polish
Classification of Activities divisions in 2011*
Number of
entities at
year–end *
Number of
Average
employees employment
(thousand) (thousands)
Revenues
from total
activities
(PLN bln)
103.9
Costs of
total
activities
(PLN bln)
2.5
Net
financial
result
(PLN bln)
1.9
6,267
475.6
106.5
in which:
Land transport and
transport via pipelines
4,940
268.6
62.1
59.8
2.2
1.8
Water transport
49
2.3
0.9**
0.8**
0.0**
0.0**
Air transport
38
2.5
5
5
0.0
0.0
Warehousing and support
activities for transportation
1,174
117.8
30.6
30.5
0.1
0.0
Postal and courier activities
66
3.6
*According to REGON, data on entities with the number of employees exceeding 9 persons
** Data for 2010
Source: Central Statistical Office, Structural changes in the groups of entities in the national economy in 2011, INSIGOS
database Ministry of Economy on the basis of F-01 reports of the Central Statistical Office.
The number of entities operating in the section increased (by 0.9%). The structure according to the size
of entities operating in transportation, storage and communications is similar to the structure in trade
and repair. Micro-enterprises (up to 9 employees) prevail; their share in 2011 amounted to 97.5%.82
In 2011, total revenues generated by the transportation and storage section increased by 11.4%, while
the corresponding costs grew by 12% in the same period.
12.6. General problems of the services sector
Expansion of the services sector, which has been observed in Poland for many years now, is reflected
in figures describing the economic activities of service businesses and a constant growth of their
importance for the entire economy. A significant role in this sector is played by trade, whose forms and
ways of reaching buyers undergo constant and dynamic changes. More and more chain stores start
selling their goods online. This form of commerce is developing mainly in large agglomerations and will
probably become more and more popular in the future.
Turmoil in the global economy affected also the Polish economy, including the services sector. The
uncertain economic situation was reflected differently in the financial results of individual sections of the
services sector. In 2011, the dynamics of the gross value added in market services and non-market
services was similar as in the previous year. In both cases this indicator was lower than the average
growth of gross value added in the economy. In 2011, financial results for most sections of services
increased. The only section to record an almost 20% decline in total operating revenues was
professional, scientific and technical activity.
In 2011, revenues and costs grew at a similar rate for the trade and repair section and for the
transportation and storage section. However, in both cases the increase in costs was higher by approx.
0.4 pp. Gross and net results for the trade and repair section decreased by approx. 3%. This was
caused by an increase in some costs categories and by strong competition in the sector. Both sections
have low profitability ratios.
Central Statistical Office, Structural changes in groups of entities in the national economy entered into the REGON
register, Warsaw 2012.
82
185
MINISTRY OF ECONOMY
In 2011, a marked growth of debt stemming from bank loans was recorded in the following sections:
information and communications (by over 106%), real estate activities (by over 172%), professional,
scientific and technical activities (by over 65%) and other services (by over 40%).83 In other sections,
the increase in debt was no higher than 10% compared to the previous year and the debt has
decreased. The debt of trade and transportation companies increased by 2.7% and 6.9%, respectively,
i.e. significantly less than in the previous year.
It should be noted that some sections significantly reduced their capital expenditures (e.g. education by
38% and administrative and support service activities by 12%) whereas others markedly increased their
expenses (e.g. real estate activities by o 29%).
Poland’s trade sector is characterized by a very large number of retail outlets compared to the majority
of the European Union countries - there are over 350,000 of them in Poland.84 The decline in the
number of entities in 2011 was partly a consequence of the economic crisis (this regards mostly small
retail shops), and party of changes on the market of large-format stores. The ownership structure has
not changed much – it is still dominated by private and domestic companies (in terms of the number of
stores) and by small-format stores. However, the expansion of big retail outlets no longer happens in
cities only, but also in smaller towns where medium-format stores are being opened and attract
customers with good prices and varied product ranges. The structure of the Polish society also offers
good prospects for retail trade. A relatively high percentage of the population aged 20-44 (approx. 37%),
who are characterised by the largest propensity to buy, determines the development potential of the
sector. Apart from changing prices and consumer demand, the transformations in the wholesale trade
sections are also determined by general development processes reflecting rationalisation measures
undertaken by enterprises to cut turnover costs and increase competitiveness.85
Within the last three years, new phenomena have occurred in the trade sector, which are likely to
determine its condition in future. Large investment in shopping malls, as well as mergers and
acquisitions of already existing retail networks, are common phenomena nowadays. Retail outlets are
modernised (e.g. environmentally friendly projects). Consolidation processes are conducive to
investment in new IT technologies, integrating cooperating trade companies. Advanced ICT allow to
optimize management processes and facilitate adaptation to the customers' needs. An increasing
interest of customers in online sale will force the traditional sellers to invest also in e-commerce.
As regards the transport sector, the prevalence of small and medium-sized entities with domestic capital
and specific profile of activity (transport, freight forwarding) is expected to continue, but the process of
internationalisation and globalisation of production and distribution will result in an increased role of
entities providing advanced logistic services. The development of B2B services is expected also in this
sector.86
Knowledge-based economy requires a competitive services sector. In this context, the information
concerning innovation of companies and the use of information and communications technologies and
techniques in companies seems alarming. Like in previous years, the Polish services sector
demonstrates low innovativeness, both compared to EU Member States and the Polish industry. The
services sector spends only 45% of the industrial sector’s spending on innovation. It must be
Data from Insigos MG.
Retail trade in food in Poland 2011 - 2nd edition.
85 Internal trade in Poland 2006-2011, Institute for Market, Consumption and Business Cycles Research, Warsaw 2011.
86 Services in Poland 2008–2010, Institute for Market, Consumption and Business Cycles Research, Warsaw 2011.
83
84
186
emphasized, however, that expenditure on innovation87 in the services sector exceeded PLN 10 billion
in 2010.88 However, the expenditure for R&D accounted for only 12.5% of total expenditure on
innovation, i.e. approx. PLN 1.2 billion.
Only 10.3% of small entities operating in services sector, employing between 10 and 49 persons,
conducted innovation-related activities in 2010. Among medium-sized entities employing 50–249
persons and those employing more than 249 persons, such activities were conducted by 22.6% and
41.7% of entities, respectively. It should be noted that as many as 61.6% of entities from the services
sector employing more than 499 persons conduct innovative activities (for entities operating in industry,
the figure is 69.4%).
In 2010, small entities operating in the services sector accounted for only 8.1% of total expenditure on
innovation in the sector. Medium-sized entities employing 50-249 persons and those employing more
than 249 persons accounted for 8.5% and 7.92%, respectively, of total expenditures. The entities from
the services sector that employ more than 499 persons accounted for as much as 74.6% of total
expenditure on innovation.
The main sources of financing expenditure on innovation in 2010 were companies’ own funds. In the
services sector, they constituted 85.7% of all expenditure (75.2% in the industrial enterprises sector).
For many years, the least popular source of financing expenditure on innovation has been venture
capital. No expenditure was financed from this source in the services sector in 2010, as in the years
2006-2009.
Some chance to increase innovation is in the use of new forms of communication in trade and other
services. Despite the fact that the e-commerce and e-services market in Poland is very dynamic, its
further development requires investments on technical infrastructure as well as its greater presence in
the public administration, both centrally and locally.
Insufficient level of innovation in service companies negatively affects their competitive position. As
regards acquiring foreign clients by Polish service providers, price competitiveness remains the
dominant method, which is best visible e.g. on the medical services market.
Equally important for the entire services sector is the dynamic development of services consisting in
supporting business activities, the so called business services, which include IT services, legal services,
accounting services, management services, engineering and architectural services or advertising
services, etc. It is, among others, the result of outsourcing consisting in companies focusing their efforts
on their core business, which gives them a comparative advantage, and commissioning external
companies to provide services supporting their business. A correlation between the business services
sector and other sectors of the economy can be observed. Business services are becoming a factor of
production influencing the efficiency of business activities. At the same time, demand for these services
depends on the global economic growth. Furthermore, due to a considerable development potential of
business services, Central and Eastern European countries, most notably Poland, are an attractive
location for international business service centres.
87 Innovation activities consist in enterprises’ involvement in various scientific, technical, organisational, financial and
commercial activities, which lead or are to lead to implementation of innovation. Some of those activities are innovative, while
others are not new but are necessary to implement innovation. Innovation activities include also R&D activity which is not
directly related to creation of a specific innovation.
88 Innovative activity of enterprises in 2008–2010, Central Statistical Office, Warsaw 2012.
187
MINISTRY OF ECONOMY
Poland attracts investors, who establish Business Process Outsourcing and Business Process
Offshoring centres in Special Economic Zones or, increasingly often, outside such zones, thanks to
active policies of local governments. They constitute a very narrow segment of the entire services
market, but during economic downturn such investments are extremely valuable, not only in terms of
innovation transfer. The business services market has reached a certain level of maturity, with some
centres relocating to new places outside the Special Economic Zones. Furthermore, the sectoral
organisation for companies from the BPO sector89, which both represents the entire sector in contacts
with the Polish authorities and act for attracting new centre operators to Poland, is very active.
89
Association of Business Service Leaders (ABSL).
188
13. ENTERPRISES
13.1. Ownership structure and transformation of state-owned
enterprises
The aim of an economic transformation process initiated at the beginning of 1990s was to adjust the
economy to market conditions, with the dominating role played by the private sector, being more
efficient, flexible and able to live up to tough competition conditions more easily. Changes in the
economic structure took place via privatization of state enterprises and creation of new private economic
entities. The growth in the number of private entities in the overall number of enterprises was
accompanied by an increasing share of the private sector in the national economy. In mid 1990s this
sector got the upper hand in the economy and its share keeps growing every year.
Chart 51 Share of the private sector in total gross value added in the selected sectors of the economy in
2000 and 2009 (in %)
%
100
80
95.5
99.6
81.0
80.9
77.5
71.0
98.4
97.6
68.5
60
48.0
40
20
0
20001
2009
Source: Statistical Yearbook of Poland, the Central Statistical Office, calculations by the Strategy and Analyses Department,
Ministry of Economy.
Table 64 Share of the private sector in the basic economic categories (in %)
2000 2005
71.0
75.5
Gross value added
x
73.6
Employees (annual average)
65.2
65.1
Investment expenditures
48.6
58.6
Gross fixed assets
83.6
87.4
Exports
84.2
90.3
Imports
Source: Concise Statistical Yearbook of Poland, the
Department, Ministry of Economy.
2006
2007
2008
2009
2010
2011
76.3
74.2
66.2
58.6
86.8
87.8
77.3
75.2
68.0
59.6
87.3
87.6
77.4
76.2
65.5
60.3
83.5
84.7
77.5
76.1
59.6
60.5
82.2
83.9
77.5
76.3
56.5
60.4
80.6
83.7
x
77.0
x
x
81.2
82.1
Central Statistical Office, calculations by the Strategy and Analyses
189
MINISTRY OF ECONOMY
13.1.1. Ownership transformation in state-owned enterprises90
A significant condition for a faster and stable economic growth is the development of the private sector.
It is achieved by way of consistent implementation of privatisation processes, which contribute efficiently
to investment growth, improved financial condition of entities, optimization of manufacturing processes
and gaining durable ability to compete on the global market, as well as influence state budget stability.
The economic situation of Polish and foreign partners has a significant impact on efficiency of
privatisation processes, as it has a direct impact on the interest of potential investors in the privatisation
offer. Effective privatisation processes are also influenced by the situation on capital markets, which
reflect the condition of the economy, indicate investors’ moods and are the place where the response to
changes in the economic situation is the most visible.
Privatisation can open new opportunities for Polish enterprises as well as create favourable conditions
for their development. Effective privatisation processes offer a chance to maintain economic growth and
improve competiveness of the economy. By changing the ownership structure, implemented
privatisation processes provide access to know-how and offer better chances to obtain funds for
investment. Privatisation lays the foundation for accelerated expansion and modernisation of
enterprises, and thus the entire economy. It contributes to improved competitiveness of operators and in
consequence – to improved management efficiency.
Box 26 Privatisation plans
On 22 April 2008, the Council of Ministers adopted a Privatisation Plan for the years 2008-2011, which included
the projects for 740 companies. On 10 February 2009, the updated version of the Plan was adopted and the list
of companies was extended to 802 items. Moreover, on 11 August 2009 the Council of Ministers adopted a
document entitled Key Companies to be Privatised in the years 2009–2010 – Revised Privatisation Plan for the
years 2008–2011, where 54 key entities were selected for privatisation within 18 months, i.e. in the second half of
2009 and in 2010.
In 2011, the GDP in Poland grew by 4.3%. Despite the weakening EU and global economy, the growth
rate of the Polish economy remained stable. As a result, Poland was considered an attractive and
reliable economic partner.
The 2011 was an extraordinary year for the Warsaw Stock Exchange. The first full year of the operation
of the Warsaw Stock Exchange as a public company was the year of the economic downturn in almost
the entire Europe. Despite uncertainty prevailing on the global financial markets, the Warsaw bourse
had a record number of IPOs with over 210 new listings on the main market and the New Connect
market, which gave the WSE the third place among European bourses in terms of IPO value in 2011.
Interest from foreign issuers has increased as well. Out of 46 of foreign companies listed on the WSE,
15 made their debut in 2011. At the end of 2011, 39 foreign companies were listed on the main and the
parallel market. The capitalisation of the Polish companies listed on the WSE at the end of 2011
amounted to PLN 446 billion.
Privatisation through stock exchange is one of the main ownership transformation strategies. One of
their key objectives is to develop the capital market in Poland and to strengthen the role of Warsaw as a
regional financial centre of the Central and Eastern Europe.
Fragments of documents by the Ministry of State Treasury, “Evaluation of the Progress in Privatisation of State Treasury
Property in 2010’ and “Directions of Privatisation of State Treasury Property in 2011,’’ and a study by the Central Statistical
Office “Privatisation of State-Owned Enterprises in 2010’ have been used in this Chapter.
90
190
The basic source of privatisation revenue was funds obtained on the stock exchange. In 2011 two
companies partly owned by the State Treasury, namely Jastrzębska Spółka Węglowa S.A. and Bank
Gospodarki śywnościowej S.A., were floated on the stock exchange. The value of debuts on the WSE
exceeded PLN 8.5 billion. Public offering of companies partly owned by the State Treasury accounted
for over 66% (PLN 5.7 billion) of the total value of debuts on the Warsaw Stock Exchange in 2011.
13.1.1.1.
Ownership transformation process
Ownership transformation in the state-owned enterprises can happen in three ways:
− commercialisation, i.e. transformation of an enterprise into a company wholly owned by the State
Treasury. The next phase of transformation is an indirect (capital) privatisation;
− direct privatisation,
− liquidation for economic reasons.
The choice of ownership transformation method depends on the size of enterprise, its economic
situation, type of activity, as well as the strategic importance of the enterprise to state economy.
Commercialisation is the preferred form of ownership transformation for mining and extraction
companies, manufacturing businesses as well as companies that supply electricity, gas, steam and hot
water. Construction companies, companies active in the field of trade and repair of motor vehicles and
transport companies would in most cases be privatised directly.
In Poland, privatization processes have been carried out since the beginning of the transformation
period. Until the end of 2011, 5 897 state enterprises had been subject to ownership transformation.
Most enterprises underwent ownership transformation in the initial transformation period (1 258
enterprises in the years 1990-1991 and 1 402 in 1992). In 2011, 12 enterprises underwent ownership
transformation.
Until the end of 2011, manufacturing entities were the largest group (43.6%) among enterprises covered
by ownership transformation. Construction enterprises (17.2 %) and trade and repair enterprises
(11.7%) formed far less numerous groups.
Entities subject to direct privatisation amounted to 37.2%, subject to liquidation – 32.9%, and
commercialized – 29.9%.
Since 1990, most enterprises undergoing transformation processes were from Śląskie (824),
Mazowieckie (724), Dolnośląskie (519) and Wielkopolskie (507) Voivodeships.
Commercialisation and indirect (capital) privatisation
Commercialisation consists in transforming an enterprise into a joint stock company or a limited liability
company, the next stage is the disposal of shares or stocks by the State Treasury. This stage is referred
to as ‘indirect privatisation’.
Until the end of 2011, 1 761 state enterprises had been commercialised (including 6 in 2011). 572 of
them were privatised indirectly (including 67 in 2011).
The revenues from indirect privatisation amounted to PLN 13.002 billion, compared to PLN 21.607
billion in 2010.
191
MINISTRY OF ECONOMY
Direct privatisation
This type of privatisation is characterized by a far greater efficiency than indirect privatisation. Direct
privatisation may be threefold: selling an enterprise, putting assets of the enterprise into a business
partnership or leasing of the enterprise.
In the years 1990-2011, 2 195 state enterprises were subject to direct privatization (including 2 in 2011),
and privatisation processes were completed in 2 117 enterprises, i.e. in 96.4% of those undergoing this
type of privatization (in the case of indirect privatisation the efficiency is far lower and amounts to
32.5%).
Until end-2011, 62.4% of privatised entities were leased and 24.1% were privatized in the form of asset
sale. The revenues from direct privatisation amounted to PLN 54 million in 2011 (PLN 71 million in
2010).
Table 65 Number of companies subject to ownership transformation*
1. State-owned companies subject to ownership transformation
a - 2010, b - from the beginning of privatisation
Total
Total
processes
Commercialisation Commercialisation
Winding up
a
12
6
2
4
Total
1,761
2,195
1,941
b
5,897
2. Effects of ownership transformation
Total
a - 2010, b from the beginning of privatisation
Indirect
Total
Direct
processes
commercialisation
Winding up
commercialisation
(capital)
a
81
67
2
12
Total in absolute figures
b
3,811
572
2,117
1,122
Efficiency (in %) (2b : 1b)
64.6
32.5
96.4
57.8
* excluding state-owned companies of the agricultural economy incorporated into the Resource of Agricultural Property of the
State Treasury.
Source: Privatisation of state-owned enterprises in 2011, Central Statistical Office.
Liquidation of companies for economic reasons
This is a procedure used in the case of poor economic situation of enterprises which is unlikely to
improve. Liquidation is a time-consuming process. Liquidation procedures in enterprises whose
liquidation was completed in 2011 took 7 years on average. In the years 1990-2011, out of 1 941
companies in liquidation, the process was completed in 1 122 (57.8%). In 2011, 4 enterprises were put
into liquidation.
13.1.1.2.
Revenues from privatisation and budgetary revenues from dividends
2011 was the last year of operation of the "Privatisation plan for 2008-2011” adopted on 22 April 2008
by the Council of Ministers. The Directions of State Treasury assets privatisation for 2011 stipulated that
the privatisation revenue should reach the amount of PLN 15 billion. In actual revenues amounted to
PLN 13 059 million, i.e. 87.1% of revenues planned and slightly over 60% of revenues generated in
2010.
Revenues generated in 2011 were allocated as follows:
− PLN 6,268 million - state budget,
− PLN 392 million - Enterprise Restructuring Fund,
− PLN 415 million - Reprivatisation Fund,
− PLN 5,058 million - Demographic Reserve Fund,
192
−
−
−
−
−
PLN 261 million - State Treasury Fund,
PLN 261 million - Polish Science and Technology Fund,
PLN 125 million - Labour Fund,
PLN 176 million - guarantees and warranty provisions of the State Treasury,
PLN 103 million - restructuring of the industrial defence potential.
Revenues from dividends, which had been planned at the level of PLN 3,300 million, were generated in
the amount of PLN 5,148 million (plan exceeded by 56.0%).
13.1.1.3.
Ownership transformations in 2012
Pursuant to Poland’s Multiannual Financial Plan 2010-2013 adopted by the Council of Ministers on 3
August 2010, revenues from privatisation of property held by the State Treasury in 2010-2013 will
amount to approx. PLN 55 billion in total, out of which PLN 30 billion will be made in 2011–2013. In
2010, revenues amounting to PLN 21.7 billion were generated, while in 2011 they totalled PLN 13.1
billion, which means the revenues planned for 2012-2013 slightly exceeded PLN 22 billion.
Box 27 Privatisation directions in 2012
With a view to efficient and effective implementation of privatisation projects, legislative steps are being taken,
among others, to rationalise and set standards for procedures, as well as develop transparent and easy to
understand mechanisms of transforming companies that are often uncompetitive into private companies.
The privatisation-related activities of the Ministry of State Treasury in 2012 will depend on the completion of
privatisation processes covered by the "Privatisation plan for 2008-2011”, adopted by the Council of Ministers on
22 April 2008, and also on the number of companies that were added to the privatisation resources during the
Plan implementation, as a result of e.g. commercialisation.
The Ministry of State Treasury will elaborate the privatisation plan for 2012-2013 which will cover entities that for
various reasons had not been privatised by the end of 2011.
Public offering of companies partly owned by the State Treasury is conducive to development and strengthening
of the capital market. The market involves the development of economical, effective and secure mechanism of
converting the domestic savings into financing and investment of domestic companies, in particular small and
medium-sized enterprises.
Privatisation processes and planned privatisation revenues are influenced by provisions of strategies and
industry-specific schemes adopted by the Council of Ministers, which, taking into account the state’s objectives
for the industry concerned, lay down rules and methods for privatisation of companies that are relevant to a
given sector.
In December 2011, the Minister of State Treasury signed the document entitled Directions of
Privatisation of State Treasury Property in 2012. Privatisation revenues were estimated at PLN 10.0
billion, budget revenues at PLN 3.6 billion and revenues from dividends obtained from State Treasury
supervised companies at PLN 8.0 billion.
In line with the provisions of Directions of Privatisation in 2012, the Ministry of State Treasury has drawn
up the Privatisation plan for 2012-2013. The document was adopted by the Council of Ministers on 27
March 2012. It defines the main assumptions of the privatisation policy and the list of entities partly
owned by the State Treasury which were selected for ownership transformation.
193
MINISTRY OF ECONOMY
In the years 2012-2013, 300 companies will be privatised, including:
− 279 companies supervised by the Minister of State Treasury,
− 15 companies supervised by the Minister of National Defence,
− 4 companies supervised by the Minister of Economy,
− 2 companies supervised by the Minister of Transport, Construction and Maritime Economy,
The document focuses on the following issues:
− Ownership transformations form one of the foundations of the economy and social changes and
have a significant impact on entrepreneurship development. Privatisation also contributes to a good
condition of the Polish economy. Development challenges of Poland (including the necessity to
improve the competitiveness of the economy and effectiveness of enterprises, as well as innovation
and competitive advantages) require the privatisation to be continued and placed in a new context.
− Privatisation develops the capital market and strengthens the role of Warsaw as a regional capital
centre. Privatisation through stock exchange facilitates the access to global capital for companies
interested in obtaining the funds and increases the capitalisation of the stock exchange. Support for
the role of Warsaw as a regional financial centre increases the access of Polish companies to
capital which enables their development on a regional and supra-regional scale.
− Promoting the active participation of Poles in stock exchange transactions, i.e. the development of
the concept of the Citizen Stockholder. Other forms of privatisation promotion, including the socalled Employee Stock Ownership Plans, will also receive support in the form of warranties and
guarantees granted to companies with shares owned by employees and local government units
(companies of civic activity).
− Entities to be privatised were selected to rationalize the assets of the State Treasury, i.e. to secure
the economic interests of the state and effectively influence the economic operators by carrying out
ownership transformations. The measures are intended to gradually reduce the role of the state in
those areas of the economy where the ownership supervision by public administration authorities is
not necessary.
13.1.2. Small business development
In 2011, the number of new enterprises registered in the REGON system amounted to 346,000 (14%
less than in 2010). Sole traders constituted the largest group among the newly established entities (86%
of the total). The number of entities removed from the REGON register amounted to 383,600 in 2011,
i.e. over half more than in the previous year.
The largest decline of the number of newly registered entities was recorded in such sectors as
manufacturing and other service activities. The highest percentage growth was recorded in the following
sectors: public administration and national defence, mandatory social insurance (of 82.4% and mining
and quarrying (of 12.7%). The decrease in the number of newly registered entities resulted from the
reduced number of natural persons conducting business activity. The number of commercial companies
and partnerships grew by 6.4%, with the number of companies increasing by 6.3% and of partnerships
by 6.8%. Within the group of partnerships, the highest growth was recorded in the number of limited
joint-stock partnerships (by 44.1%) and limited partnerships (by 28.6%). As regards companies, the
number of limited liability companies increased by 6.4% and of joint-stock companies by 5.1%.
Significant differences were recorded between individual voivodeships. The decrease was the largest in
Śląskie Voivodeship (20.2%), and very high also in Opolskie (19.0%) and Warmińsko-Mazurskie
Voivodeship (18.5%).
194
thousand
Chart 52 New registered and deregistered entities in the national economy under the REGON
450
400
Units:
new registered
deregistered
350
300
250
200
150
100
50
0
2005
2006
2007
2008
2009
2010
2011
Source: Structural changes in the groups of enterprises in the national economy in 2011, Central Statistical Office Warsaw.
Situation of micro-enterprises in 2010
In 2010, the number of operating enterprises increased compared to 2009 from 1,674 thousand to 1,727
thousand (as a result of the increase in the number of operating micro-enterprises to 1,655 thousand).
Enterprises in total increased their revenues to PLN 3,297 billion in 2010, which marks a growth of
almost PLN 220 billion compared to 2009. Micro-enterprises accounted for PLN 20 billion of the total.
Costs of enterprises grew by PLN 174 billion, i.e. less than revenues, and therefore gross profit in
enterprises in 2010 was PLN 46 billion higher than in 2009.
Since revenues of enterprises grew faster than their number, the value of revenues per enterprise
increased from PLN 1.8 million to PLN 1.9 million. A significant disproportion is observed between
micro-enterprises and larger companies in terms of generated revenues. Micro-enterprises generated
only PLN 0.4 million, medium-sized enterprises PLN 43.5 million, while large companies PLN 454.5
million.
As it was registered in 2009, also in 2010 investment expenditure increased only in the group of the
smallest companies (from PLN 22 billion to PLN 25 billion).
In 2010, the number of people employed by enterprises was 30,000 higher than in 2009. The increase
was observed in all groups of companies, except for micro-enterprises which recorded a decline in this
respect. In terms of average number of employees, a growth was recorded only in the group of large
companies (by almost 40,000). Among micro-enterprises the number of the employed was almost
80,000 lower than in 2009, in the group of medium-sized companies it was 20,000 lower, while small
enterprises maintained their employment level from 2009.
Table 66 Basic features of micro-enterprises sector
2008
Number of enterprises (in thous.)
1,714.8
Number of employees (in thous.)
3.606
Average number of employees (in thous.)
1,365
Average monthly payment per 1 employee (in PLN)
1,729
Investment expenditures (in PLN million)
20.0
Total revenues (in PLN million)
662.3
Total costs (in PLN million)
577.9
Source: Activity of non-financial enterprises in 2010, Central Statistical Office.
195
2009
1,604.4
3,464
1,361
1,879
21.9
699.1
614.8
2010
1,655.0
3,399
1,282
2,006
24.8
719.9
618.2
MINISTRY OF ECONOMY
In 2010, the average monthly salary was PLN 3,300 and was over PLN 150 higher than in 2009. The
salary growth rate was similar in all groups of companies, though it was slightly higher in large
enterprises.
Situation of micro-enterprises established in 201091
In 2010, 286,200 new enterprises employing up to 49 persons were registered in REGON. The figure
was around a dozen thousands higher than in 2009. The highest percentage of new enterprises were
companies from the trade sector (30% of the total) and the construction sector (17%). One in ten
companies came from the section of professional, scientific and technical activity and a similar
percentage from the industry sector.
It must be emphasized that the survival rate of newly established enterprises increased every year.
From among the companies established in 2010, 77.8% still operated in 2011. The success rate was
the highest among companies from the section of professional, scientific and technical activity where
88.3% of enterprises still functioned a year after starting their activity. Other well-performing sections in
this regard included real estate activities (86.2% of enterprises) and health care and social assistance
(85.6%). The companies experiencing the greatest difficulties with remaining on the market were mainly
from the following sections: administrative and support service activities and finance and insurance,
where survival rates amounted to 63% and 69%, respectively.
Chart 53 Structure of newly established small enterprises in 2010
Industry
5.0%
4.4% 0.7%
2.8%
9.2%
Construction
Trade and repairs
4.2%
17.2%
Transport
Accomodation
10.1%
1.0%
1.5%
4.5%
Real estate, renting
3.9%
Professional, scientific and technical
activities
Administrative and support service
activities
Source: Conditions for establishment and operation of PolishEducation
companies set up in 2006–2010. Central Statistical Office.
5.5%
30.0%
Table 67 Newly established enterprises in Poland in the years 2005-2010
Number of newly established
Number of enterprises active
Survival rate
enterprises
in the following year
2005
211.1
142.8
67.6
2006
241.4
160.6
66.5
2007
273.6
193.3
70.7
2008
294.3
224.8
76.4
2009
275.3
212.0
77.0
2010
286.2
222.5
77.8
Source: Conditions for establishment and operation of Polish companies set up in 2006–2010. Central Statistical Office.
Year
Conditions for establishment and operation, as well as development perspectives for Polish enterprises established in the
years 2006-2010. Warsaw, Central Statistical Office.
91
196
The enterprises established in 2010 and still operating in 2011 employed 476 300 persons, out of which
31.1% were employed by trade companies, 16.0% by enterprises from the industry sector and 13.2% by
construction companies.
Persons below 30 years of age established 36.4% enterprises, slightly more than a half of new
enterprises were established by persons aged 30–49 years, while 12.3% by persons older than 50
years. In two sections, namely, information and communication and other service activities
approximately half of enterprises were established by persons below 30 years of age, while the highest
percentage of companies established by persons over 50 years of age was recorded in accommodation
and food service activities and real estate activities.
13.2.
Financial standing of enterprises92
13.2.1. Revenues, costs and results on individual types of activities
Total operating revenues amounted to PLN 2 791 billion and were higher by 13.9% compared to 2010.
The cost of revenues (PLN 2 650 billion) grew by 14.3 %, i.e. 0.4 pp more than the revenues. The
financial result on business activities amounted to PLN 140.9 billion, i.e. was by 6.7% higher than in
2010.
Revenues from sales of products, goods and materials are the dominating element of total
revenues. In 2011 they amounted to PLN 2 675 billion and grew by 13.3%. Costs of revenues increased
by 13.2%. The result on sales (PLN 140.7 billion) grew by 14.8%.
Other operating revenues (PLN 52.2 billion) increased by 8.1% and their cost by 21.9%. As a result
the result dropped from PLN 8.2 billion to PLN 3.3 billion (by 59.8%).
Revenues from financial activities (PLN 64.4 billion) increased by 55.6% and their costs (PLN 67.5
billion) by 67.9%. Financial activities recorded a loss of PLN 3.1 billion, compared to a profit (PLN 1.2
billion) generated in the previous year.
Table 68 Revenues, costs and results by types of activities (PLN billion)
2010
Revenues
Costs Result
Sales of goods and materials
2,361.9 2,239.3 122.6
Other operating activities
48.3
40.1
8.2
41.4
40.2
1.2
TOTAL BUSINESS ACTIVITIES
2,451.6 2,319.6 132.0
Extraordinary events result
x
x
-0.2
Gross financial result
x
x 131.8
Net financial result
x
x 109.9
Source: Financial statements F-01, Insigos database, calculations of SAD of MoE.
Revenues
2,674.7
52.2
64.4
2,791.3
X
x
x
2011
Costs Result
2,534.0 140,7
48.9
3,3
67.5
-3,1
2,650.4 140,9
x
0,1
x 141,0
x 116,6
The increase in total operating revenues in 2010 resulted mainly from increased revenues from core
business (sales) of enterprises and partly from financial activities.
92
Information presented in this Chapter refers to economic operators employing more than 9 persons.
197
MINISTRY OF ECONOMY
The increased financial result on economic activity was solely the result of core business. Other
types of activity generated worse results than in 2010.
Gross financial result (PLN 141.0 billion) rose by 7.0% and the charges amounted to PLN 24.4 billion.
The share of charges in the gross result decreased from 16.6% in 2010 to 17.3%.
Net financial result amounted to PLN 116.6 billion, thus growing by 6.1%.
Table 69 Changes of revenues and results in 2011 (in comparison with 2010)
2010
Change
PLN bln
%
2011
Revenues
2,361.9
2,674.7
48.3
52.2
41.4
64.4
2,451.6
2,791.3
Results
122.6
140.7
8.2
3.3
1.2
-3.1
132.0
140.9
Extraordinary events result
-0.2
0.1
131.8
141.0
Net financial result
109.9
116.6
312.8
3.9
23.0
339.7
18.1
-4.9
-4.3
8.9
0.3
9.2
6.7
13.2
8.1
55.6
13.9
14.8
x
x
6.7
x
7.0
6.1
Chart 54 Financial results on business activities in 2010 and 2011 (PLN bln)
bn PLN
160
140
132.0
140.9
141.0
131.8
120
116.6
109.9
100
80
60
40
20
0
total activity
gross
net
2010
2011
Gross and net profitability rates decreased to 5.1% and 4.2%, respectively. Sale profitability increased
from 5.2% to 5.3%.
198
Chart 55 Financial profitability indices in 2010 and 2011 (%)
%
6
5.4
5.3
5.2
5.1
5
4.5
4.2
4
3
2
1
0
sales
2010
gross
net
2011
13.2.2. Investment expenditures93 and possibilities of their self-financing
‘Investment expenditure’ is the most sensitive of all macroeconomic indicators. The global economic
crisis and its negative impact on the Polish economy resulted in a considerable reduction in
investments.
In 2006 and 2007, i.e. in the years before the economic crisis, investment expenditure grew at a rate of
more than 20%. In 2008, the Polish economy started experiencing the negative impact of the global
crisis, the rate of growth in investments slowed down to 5.3%, and in 2009 a 10.8% decline of
investments was recorded. In 2010, that negative trend continued, and investment expenditure dropped
again (by 4.0%). The downward trend was reversed in 2011 when an 11.9% growth of investments was
recorded.
Chart 56 Investment expenditures in the years 2006-2011 (PLN bln, % change)
bn PLN 150
126.4
100
133.1
127.5
118.7
113.9
2009
2010
99.3
50
0
2006
2007
2008
2011
In this Chapter, investment expenditure is presented in current prices, including expenditure for the purchase of used fixed
assets.
93
199
MINISTRY OF ECONOMY
Despite a significant increase in investments, the possibilities of their self-financing remained almost
unchanged, since the increase in investments was accompanied by a growth of investment surplus94,
on the one hand, and by an increase in disposable funds of economic operators, on the other hand.
Investment surplus grew to PLN 230.2 billion (by 12.8%) and its relation to incurred expenditure
amounted to 1.81, compared to 1.79 in 2010. Disposable funds of enterprises (short-term investment)
grew to PLN 256.6 billion (by 8.1%) and their relation to incurred expenditure slightly decreased (from
2.08 in 2010 to 2.01 in 2011).
13.2.3. Debt, receivables, financial liquidity
As of end-2011, the debt of enterprises amounted to PLN 961.0 billion, which marks a growth of 15.2%
compared to end-2010. The share of long-term debt grew from 31.5% to 33.0%.
Long-term debt amounted to PLN 317.0 billion, i.e. grew by 20.5%. Credit and loan liabilities dominated
in this debt (PLN 148.5 billion), constituting 46.8% of the total long-term debt (the share amounted to
50.3% a year before).
Short-term debt (PLN 644.0 billion) increased by 12.8%. Supply and services liabilities dominated in this
debt (PLN 335.4 billion), i.e. constituted 52.1% of the short-term debt, compared to 51.5% in the
previous year. Taxes, duties and insurance liabilities amounted to PLN 48.9 billion and were 6.9%
higher than in the previous year.
The possibility to repay the debt with sales revenues decreased because the revenue growth rate
(13.3%) lagged behind the debt growth rate (15.2%). In 2010, the debt could have been repaid with
sales revenues made in 127.1 days. In 2011, it would have been as many as 129.3 days.
Short-term liabilities as of end-2011 amounted to PLN 421.4 billion, thus growing by 10.5%. Short-term
supply and services liabilities (PLN 350.2 billion) increased by 11.7%. Their share in total short-term
liabilities grew from 82.1% to 83.1%.
Financial liquidity ratios decreased: 1st degree from 42% to 40%, 2nd degree from 108% to 105%,
and 3rd degree from 149% to 148%. Financial liquidity ratios exceeded the bottom-line of the
recommended bracket.95
13.2.4. Financial situation in economy sections
Total industry
Industry consists of four sectors: mining and quarrying, manufacturing, electricity, gas, steam and hot
water supply, water supply and waste management. Total results for this aggregation are as follows.
Total operating revenues amounted to PLN 1 308.1 billion in 2011, thus growing by 16.7%. Costs of
revenues increased by 15.9%. Result on business activity amounted to PLN 92.5 billion and grew by
27.9%.
For the purposes of this Report, investment surplus is defined as the total of net profit (profit, not result) and depreciation.
Reference values for liquidity ratio of the first degree are values exceeding 20%, for the second degree – between 100%
and 120%, and for the third degree – between 120% and 200%. Depending on specificity of individual sectors, these ratios
may be different than defined by general rules.
94
95
200
Revenues from the sales of products, goods and materials (PLN 1 258.7 billion) increased by 16.2%
and their costs by 15.7%. Sales result increased to PLN 86.5 billion (by 22.9%).
Financial result on other operations was positive and amounted to PLN 1.2 billion as in the previous
year. Result on financial activities was also positive (PLN 4.8 billion) and almost seven-fold higher than
in the previous year. Total absolute improvement of the result on business activities amounted to PLN
20.2 billion, which is divided between growth in: sales by 79.7% (PLN 16.1 billion) and financial activities
by 20.3% (PLN 4.1 billion). The main growth factor as regards the result on business activities, as well
as gross and net results, was an increased result on core business (sales) of enterprises. Gross
financial result (PLN 92.5 billion) grew by 27.9% and net financial result (PLN 77.5 billion) by 28.1%.
Profitability indices grew: sales profitability from 6.5% to 6.9%, gross profitability from 6.5% to 7.1% and
net profitability from 5.4% to 5.9%.
Investment expenditure (PLN 66.3 billion) increased by 7.3%, while investment surplus grew to PLN
129.6 billion (by 18.5%). The possibilities of investments’ self-financing increased: the surplusexpenditure ratio grew from 1.77 to 1.95.
Debt grew to PLN 408.9 billion (by 16.2%). At the same time, its structure improved: the share of longterm liabilities increased from 27.4% to 29.3%. The period of possible debt repayment with sales
revenues shortened slightly (from 117.0 days to 116.9 days). Short-term receivables (PLN 196.5 billion)
grew by 10.1% and short-term investments (PLN 111.4 billion) by 17.6%.
Industry sections
A growth of revenues from total activities was recorded in all sections and was the highest in mining and
quarrying (almost 31%). The revenues in manufacturing increased by 17.3%, in electricity, gas, steam
and hot water generation and supply by 10.8% and in water supply, sewage and waste management by
9.2%.
In two industry sections, total revenue dynamics was higher than revenue cost dynamics rate: in mining
and quarrying by over 19 pp and in electricity, gas, steam and hot water generation and supply by 1.5
pp. In the other two sections, the situation was reversed and costs grew approx. 1 pp faster than
revenues.
The result on business activity increased in three sections. The highest (more than twofold) increase
was recorded in mining and quarrying. The growth exceeded 20% in electricity, gas, steam and hot
water generation and supply and amounted to 10% in manufacturing. A decline of approx. 5% was
recorded only in water supply, sewage and waste management.
Changes similar to those in total operating revenues and costs took place in individual sections in terms
of their core business. Revenues grew in all sections, with the highest increase recorded in mining and
quarrying (by over 22%) and in manufacturing (by over 17%). The only section where costs grew faster
than revenues was water supply, sewage and waste management, which as the only one recorded a
decrease in the result on sales.
As regards other operating activities, positive financial results were recorded in manufacturing and in
water supply, sewage and waste management. The first of those sections generated the same result as
a year before, whereas the latter doubled its result from the previous year. In two other sections, the
results were negative, as a year before, and their amount similar to the one recorded in the previous
year.
201
MINISTRY OF ECONOMY
Results on financial activities improved in two sections. Mining and quarrying generated a positive result
(PLN 4.5 billion) compared to a loss (PLN 1.3 billion) in the previous year, while the positive result in
electricity, gas, steam and hot water generation and supply (PLN 7.7 billion) almost doubled the one
from a year before. The situation was the worst in manufacturing where the loss generated (PLN 7.3
billion) was almost four times higher than in the previous year. Water supply, sewage and waste
management recorded a loss (PLN 0.1 billion), compared to a profit a year before (PLN 0.1 billion).
Three industry sections closed the year 2011 with better gross and net financial results than in the
previous year. In the case of mining and quarrying, the improvement resulted from better performance in
both core business and financial activity. In manufacturing, the improvement resulted only from core
business performance, whereas in the electricity, gas, steam and hot water generation and supply the
main factor contributing to the improvement was financial activity and, to a much lesser extent, core
business. Only in the case of water supply, sewage and waste management gross and net results
decreased, due to core business and financial activity.
Investment expenditure increased by over 30% in mining and quarrying and by approximately 10% in
manufacturing and electricity, gas, steam and hot water generation and supply. Water supply, sewage
and waste management recorded a decline of investments by almost 30%. Possibilities of investments’
self-financing with investment surplus decreased only in manufacturing.
Total debt grew in all sections and possibilities of its repayment with sales revenues decreased only in
the case of electricity, gas, steam and hot water generation and supply.
All financial liquidity ratios increased in mining and quarrying and decreased in water supply, sewage
and waste management. In the remaining sections, individual liquidity ratios varied significantly. In all
industry sections, liquidity ratios exceeded reference values, expect for liquidity ratio of the second
degree in manufacturing.
Non-industrial sections
All three analysed non-industrial sections recorded a growth of total operating revenues and sales
revenues.
In construction, total revenues and sales revenues increased at a lower rate than costs which resulted
in a decline of both gross and net result by approximately 22% and of result on sales (by 9.0%).The
positive result on other operating activities improved (almost doubled), while the loss on financial
activities grew almost four-fold. All profitability ratios decreased.
A similar situation to the one observed in construction was also recorded in trade and repairs. Revenues
grew less than costs. Gross and net results declined by approx. 4% and the result on sales by approx.
1%.The result on other operating activities grew by approx. 10%, while the loss on financial activities
increased further by over 33%. All profitability ratios declined.
In transport and storage, total revenues grew at a lower rate than costs, which resulted in a decrease in
gross and net result by over 15% and 5%, respectively. Sales revenues grew faster than costs. In effect,
the result on sales increased by over 60%. The positive result on other operating activities dropped by
approx. 18%, while the loss on financial activities grew almost three-fold. Sales profitability increased,
while the other two profitability ratios declined.
202
Investment expenditures increased in all three sections, with the highest growth recorded in transport
and storage (by over 35%). In the remaining two sections expenditures grew by approximately 8%.
Possibilities of financing the expenditure with investment surplus were reduced in all analysed sections.
In 2011, debt of construction companies increased by over 22%, of trade companies by over 10% and
of transportation companies by over 16%. The potential period of debt repayment with sales revenues
was significantly extended in trade and transportation companies, and remained virtually unchanged in
trade companies.
Financial liquidity ratios varied. In construction all three of them decreased. In trade and repairs the first
degree liquidity ratio slightly decreased, while the remaining two remained at the level from the previous
year. The first degree liquidity improved in transport and storage, while the other two ratios declined. In
all non-industrial sections, liquidity ratios exceeded reference values, with the exception of second
degree liquidity in trade and repairs.
Table 70 Revenues, results, profitability – economy sections in 2010 and 2011
a - 2011
b - 2010
Revenues in
Financial results in PLN billion
Profitability in %
PLN bilion
total
sales sales total
sales sales total sales sales total
2,791.3 2 674.7 140.7
3.3
-3.1 141.0 116.6
5.3
5.1
4.2
2,451.6 2.361.9 122.6
8.2
1.2 131.8 109.9
5.2
5.4
4.5
1,308.1 1 258.7
86.5
1.2
4.8 92.5 77.5
6.9
7.1
5.9
1,120.8 1.083.4
70.4
1.2
0.7 72.3 60.5
6.5
6.5
5.4
66.1
58.4
14.8
-0.4
4.5 18.9 15.4
25.3 28.6 23.4
50.5
47.6
9.8
-0.3
-1.3
8.2
6.6
20.6 16.2 13.0
1,020.4 993.1
54.8
2.3
-7.3 49.8 42.0
5.5
4.9
4.1
870.0 845.6
44.1
2.3
-1.9 44.5 37.4
5.2
5.1
4.3
193.2 180.2
15.6
-1.1
7.7 22.2 18.9
8.6 11.5
9.8
174.3 165.4
15.1
-1.0
3.8 17.9 15.2
9.1 10.3
8.7
28.4
27.0
1.3
0.4
-0.1
1.6
1.2
4.9
5.6
4.3
a
b
a
Industry, in which:
b
a
- mining
b
a
- manufacturing
b
- electricity, gas, steam and a
air conditioning supply
b
- water supply; sewerage,
a
waste management and
b
26.0
24.8
1.4
0.2
0.1
remediation activities
Non-industry sections ,
a 1,483.2 1 416.0
54.2
2.1
-7.9
including:
b 1,330.8 1 278.5
52.2
7.0
0.5
a
157.2 152.0
7.1
0.9
-1.7
Constructions
b
133.1 128.7
7.8
0.5
-0.4
a
892.3 876.7
23.6
2.0
-2.8
Trade and repair
b
806.3 792.3
23.8
1.8
-2.1
a
106.5 101.1
2.9
1.4
-1.8
Transport and storage
b
95.6
91.0
1.8
1.7
-0.6
TOTAL
1.7
1.3
5.7
6.4
5.1
48.5
59.5
6.2
7.9
22.8
23.5
2.5
2.9
39.1
49.4
5.1
6.5
18.8
19.5
1.9
2.0
3.8
4.1
4.7
6.1
2.7
3.0
2.9
2.0
3.3
4.5
4.0
5.9
2.6
2.9
2.4
3.0
2.6
3.7
3.2
4.9
2.1
2.4
1.8
2.1
13.2.5. Financial situation in ownership sectors
Total operating revenues in the private sector increased by 14.9% to PLN 2,479.7 billion. The revenue
costs grew at a faster rate. The share of revenues of the private sector in total revenues increased from
88.0% to 88.8%. The result on business activity amounted to PLN 112.9 billion (3.0% increase). The
public sector recorded a 5.8% growth of total operating revenues to PLN 311.6 billion. The result on
business activity increased by 25.0% to PLN 28.0 billion.
Good performance of core business was the only reason for improvement of the result on business
activity and of gross and net results in the private sector, since other operating activities recorded an
over 70% decline of the positive result and in financial activities the negative result increased 2.5 times.
203
MINISTRY OF ECONOMY
The increase of the result on business activity and of gross and net results was due to the performance
of core business and financial activities. The profit from core business grew by over 30% and from
financial activities by over 36%. Other operating activities had a negative impact on the results since the
profit from such activities fell by 36%.
Both sectors recorded an improvement of gross and net results. In the private sector gross result grew
by 3.2% and net result by 2.2%, whereas in the public sector they amounted to 25.4% and 25.1%,
respectively. All profitability ratios declined in the private sector and increased in the public sector.
Investment expenditures in both sectors increased, by 15.3% in the private sector and by 3.9% in the
public sector. The share of the private sector in investment expenditure grew from 70.8% in 2010 to
72.9% in 2011. Possibilities of self-financing of investments decreased in the private sector and
increased in the public sector.
Debt in the private sector grew much faster than in the public sector, by 17.2% and 2.9%, respectively.
In the private the potential time for debt repayment time with sales revenues increased to 126.9 days
and in the public sector it decreased to 149.6 days. All liquidity ratios declined in the private sector and
increased in the public sector. In both sectors all liquidity ratios exceed their reference values.
Chart 57 Basic financial features by ownership sectors in 2011 (w%)
Debt
Investments
Revenues
0%
20%
40%
60%
Private sector
80%
100%
Public sector
13.2.6. Financial situation in enterprises according to their size96
The financial situation of enterprises according to their size varied, despite the fact that all groups of
enterprises recorded an increase in total revenues and in sales revenues.
In small enterprises total revenues increased by 17.7%, at a lower rate than costs which grew by 21.5%.
The result on business activities amounted to PLN 11.4 billion, i.e. was 47.6% lower than in the previous
year. Sales revenues and costs grew by 16.3%. The result on sales (PLN 20.2 billion) increased by
15.4%. The result on other operating activities was negative (PLN 3.7 billion), while in the previous year
it was a profit of PLN 3.1 billion. Similar results were obtained in the case of financial activities, where a
loss (PLN 5.1 billion) was recorded in 2011, compared to a profit (PLN 1.0 billion) in the previous year.
The gross result was lower by 47.5% and the net result by 54.4% than in the previous year. Sales
In small enterprises the number of employees ranges between 10 and 49, in medium-sized enterprises – between 50 and
249, large ones employ more than 249 persons.
96
204
profitability remained at the level from the previous year, while gross and net profitability ratios dropped
dramatically.
The situation was slightly better in medium-sized enterprises. Total revenues grew by 12.1% and their
costs by 12.6%. The result on business activities remained virtually unchanged compared to 2010.
Revenues from core business increased by 12.1% and their costs by 12.4%. The result on sales grew
by 4.8% as a result of a relatively high sales growth rate. The profit from other operating activities
increased (by 13.6%), while the loss on financial activities increased further (by 81.0%). Gross and net
financial results grew by 1.8%. All profitability ratios declined.
Table 71 Revenues, results, profitability – ownership sectors and in enterprises according to their size in
the years 2010-2011
a - 2011
b - 2010
TOTAL
Revenues bln
Financial results bln PLN
PLN
overall sales
sales
overall sales sales
a 2,791.3 2.674.7 140.7
3.3
-3.1 141.0 116.6
b 2,451.6 2.361.9 122.6
8.2
1.2 131.8 109.9
5.3
5.2
a 2,479.7
b 2,157.2
a 311.6
b 294.4
Profitability %
overall sales
5.1
4.2
5.4
4.5
in which:
-10.6 112.9
-4.3 109.4
7.5 28.1
5.5 22.4
93.2
91.2
23.4
18.7
5.1
5.2
6.6
5.3
4.6
5.1
9.0
7.6
3.8
4.2
7.5
6.4
a 457.3
433.6 20.2
-3.7
-5.1 11.4
b 388.6
372.9 17.5
3.1
1.0 21.7
a 731.2
707.0 26.3
5.0
-3.8 27.6
- medium-sized enterprises
b 652.2
630.6 25.1
4.4
-2.1 27.1
a 1,602.8 1.534.1 94.2
2.0
5.8 102.0
- large enterprises
b 1,410.8 1.358.4 80.0
0.7
2.3 83.0
8.3
18.2
22.8
22.4
85.5
69.3
4.7
4.7
3.7
4.0
6.1
5.9
2.5
5.6
3.8
4.2
6.4
5.9
1.8
4.7
3.1
3.4
5.3
4.9
-
private sector
-
public sector
2.388.3 121.8
2.089.8 108.2
286.4 18.9
272.1 14.4
1.7
5.7
1.6
2.5
-
small enterprises
The situation of large enterprises was the most favourable. Total operating revenues grew by 13.6%,
i.e. faster than their costs. The result on business activities increased by 22.9%. Sales revenues grew
by 12.9% and their growth rate was higher than the growth rate of costs. The result on sales increased
by 17.8%. The profit from other operating activities almost tripled and the profit from financial activities
increased 2.5-fold. Gross and net financial result grew by 22.9% and 23.4%, respectively. All profitability
ratios increased.
Investment expenditures grew in all groups of enterprises at a similar rate, slightly exceeding 10%.
Possibilities of investments’ self-financing increased only in large enterprises.
Total debt grew in all groups of enterprises, with the highest increase recorded in small enterprises (of
22.2%) and the lowest in medium-sized enterprises (of 11.4%). Possibilities of debt repayment with
sales revenues increased only in medium-sized enterprises where the number of days required for
repayment of debt with revenues dropped to 125.9.
All financial liquidity ratios declined in small and medium-sized companies. In large enterprises, 1st and
2nd degree liquidity decreased, while 3rd degree liquidity increased. All liquidity ratios exceed their
reference values in the three groups of analysed entities.
205
MINISTRY OF ECONOMY
Chart 58 Basic financial features by enterprises size in 2011 (in %)
Debt
Investments
Revenues
0%
20%
40%
60%
80%
100%
Small
Medium-sized
Large
Among non-financial companies operating on the Polish market, Polski Koncern Naftowy ORLEN S.A.
has been the dominating one for many years in terms of revenues. The ten largest companies in terms
of revenues in 2011 are the same as in the previous year and two years ago, but in a slightly different
order. Their revenues in 2011 increased by 23.5% compared to 2010, i.e. 10.2 pp more than revenues
of all analysed entities. Their share in sales revenues of all enterprises has increased in recent years. In
2009 it amounted t 9.8%, in 2010 to 10.4% and in 2011 to 11.4%. The share of the ten companies that
reported net profits in the net result of all analysed entities amounted to 23.8% in 2011.
Table 72 The 10 largest company as regards revenues from sales and net financial in 2011 (PLN mln)*
Revenues
Ney
Name
PLN
change
result
mln
%
28.0 1 KGHM Polska Miedź SA GK
11,064
1 Polski Koncern Naftowy ORLEN SA
106,973
2 Grupa Lolos SA GK
29,259
48.8 2 PGE Polska Grupa Energetyczna SA GK 4,973
3 PGE Polska Grupa Energetyczna SA GK 28,571
36.5 3 Jastrzębska Spółka Węglowa SA GK
2,105
4 Jeronimo Martins Dystrybucja SA
25,285
25.1 4 Polski Koncern Naftowy ORLEN SA
2,015
5 PGNiG SA GK
23,004
8.1 5 Telekomunikacja Polska SA GK
1,918
6 KGHM Polska Miedź SA GK
22,107
31.9 6 PGNiG SA GK
1,629
7 Tauron Polska Energia SA GK
20,755
34.5 7 Tauron Polska Energia SA GK
1,239
8 Grupa Metro AG w Polsce
17,200
0.4 8 Polkomtel SA GK
1,042
9 Fiat Auto Poland SA
16,514
0.7 9 Synthos SA GK
961
10 Telekomunikacja Polska SA GK
14,922
-5.0 10 Enea SA GK
800
Razem (1 do 10)
304,590
23.5
Razem (1 do 10)
27,746
Net financial result was not Publisher by all companies. In this table are presented the 10 largest companies which Publisher
such information.
Source: Lista 500, Rzeczpospolita, April 24, 2012,
Name
206
Table 73 Investments (including the purchase of used fixed assets) and the potential for their financing with investment surplus, debt and potential time of its
payment, liabilities and liquidity in the sectors of the economy in the years 2010 and 2011
Net Depreprofit ciation
a - 2011 b - 2010
1
2
3
Investment
surplus Investment
(2+3)
4:5
bln PLN
%
4
5
in which
6
Debt
shortlongterm term
bln PLN
7
8
9
8:7
%
10
Short- Short
Days
term
-term
(repayliabilities invest.
ment)
bln PLN
11
12
13
Financial
liquidity
I
II
III
14
15
16
105
108
x
x
187
122
97
98
148
149
x
x
228
169
148
146
%
a
b
a
b
a
b
a
b
149.5
128.0
85.1
67.7
15.5
6.7
49.2
44.2
80.7
76.0
44.5
41.7
3.4
3.2
29.0
27.4
230.2
204.0
129.6
109.4
18.9
9.9
78.2
71.6
127.5
113.9
66.3
61.8
6.4
4.9
36.9
33.2
1.81
1.79
1.95
1.77
2.95
2.02
2.12
2.16
961.0
834.1
408.9
352.0
17.4
15.1
321.3
277.4
317.0
263.1
120.0
96.4
3.3
3.1
87.7
72.2
644.0
571.0
288.9
255.6
14.1
12.0
233.6
205.2
33.0
31.5
29.3
27.4
19.0
20.5
27.3
26.0
129.3
127.1
116.9
117.0
107.3
114.2
116.5
118.1
421.4
381.3
196.5
178.4
6.5
5.5
163.1
143.9
a
19.0
9.3
28.3
17.5
1.62
55.8
20.7
35.1
37.1
111.5
22.6
24.5
70
134
172
b
15.3
8.7
24.0
15.9
1.51
45.4
12.8
32.6
28.2
98.8
24.9
24.4
75
151
171
a
1.4
2.8
4.2
5.5
0.76
14.4
8.3
6.1
57.6
192.0
4.3
4.7
76
146
164
b
1.5
2.4
3.9
7.8 0.50 14.1
8.3
5.8 58.9 204.7
4.1
a
64.4
36.2
100.6
61.2 1.64 552.1 197.0 355.1 35.7 140.4
224.9
b
60.3
34.3
94.6
52.1 1.82 482.1 166.7 315.4 34.6 135.7
202.9
Constructions
a
7.9
2.8
10.7
6.8 1.57 71.5
19.9
51.6 27.8 169.3
34.7
b
8.0
2.6
10.6
6.3 1.68 58.3
16.9
41.4 29.0 163.1
28.1
Trade and repair
a
23.3
8.9
32.2
14.9 2.16 199.0
31.0 168.0 15.6
81.7
103.0
b
22.7
8.7
31.4
13.8 2.28 180.3
26.4 153.9 14.6
81.9
91.5
a
4.6
5.9
10.5
12.9 0.81 52.1
28.0
24.1 53.7 185.5
16.0
b
4.1
5.7
9.8
9.5 1.03 44.6
22.5
22.1 50.4 176.4
16.0
Source: INSIGOS database, Ministry of Economy based on Central Statistical Office data, calculations of Strategy and Analyses Department, Ministry of Economy.
4.8
145.2
142.7
20.6
22.5
37.3
36.0
13.5
11.7
83
x
x
40
54
22
23
56
53
154
x
x
107
122
83
83
122
125
171
x
x
161
179
132
132
135
139
TOTAL
Industry, in which:
-
mining
manufacturing
electricity, gas, steam and air
conditioning supply
water supply; sewerage, waste
management and remediation activities
Non-industry sections , including:
256.6 40
237.4 42
111.4 x
94.7 x
19.8 141
9.2 76
62.4 27
56.3 27
Table 74 Investments (including the purchase of used fixed assets) and the potential for their financing with investment surplus, debt and potential time of its
payment, liabilities and liquidity by size of enterprise in the years 2010 and 2011
a - 2011 b - 2010
Net
profit
1
2
Depre- Investment
surplus Investment
ciation
(2+3)
bln PLN
%
15
16
1.81
1.79
961.0
834.1
317.0
263.1
644.0
571.0
33.0
31.5
129.3
127.1
421.4
381.3
256.6
237.4
40
42
105
108
148
149
a
b
a
b
123.8
107.4
25.7
20.6
63.9
59.6
16.8
16.4
187.7
167.0
42.5
37.0
92.9
80.6
34.6
33.3
2.02
2.07
1.23
1.11
842.0
718.5
119.0
115.6
263.7
219.5
53.3
43.6
578.3
499.0
65.7
72.0
31.3
30.5
44.8
37.7
126.9
123.8
149.6
152.9
383.1
340.4
38.3
40.9
204.9
187.4
51.7
50.0
35
38
79
69
102
106
137
126
144
148
178
159
a
23.8
7.6
31.4
17.0 1.85 176.9
58.9 118.0 33.3 146.9
78.5
b
22.1
7.0
29.1
15.3 1.90 144.8
47.8
97.0 33.0 139.8
68.8
- Medium-sized enterprises
a
30.5
17.2
47.7
28.7 1.66 247.2
75.1 172.1 30.4 125.9
120.0
b
29.2
16.2
45.4
25.3 1.79 221.9
70.6 151.3 31.8 126.7
108.1
- Large enterprises
a
95.2
55.9
151.1
81.8 1.85 536.9 183.0 353.9 34.1 126.0
222.9
b
76.7
52.8
129.5
73.3 1.77 467.4 144.7 322.7 31.0 123.9
204.4
Source: INSIGOS database, Ministry of Economy based on Central Statistical Office data, calculations of Strategy and Analyses Department, Ministry of Economy.
49.7
44.2
57.0
54.0
149.9
139.2
42
46
33
36
42
43
109
116
103
107
105
106
149
159
148
153
147
145
Small enterprises
8
9
%
127.5
113.9
-
7
10
Short- Short Financial liquidity
Days
term
-term
(repayI
II
III
invest.
liabilities
ment)
bln PLN
%
230.2
204.0
Public sector
6
8:7
80.7
76.0
-
5
in which
shortlongterm
term
bln PLN
149.5
128.0
in which:
- Private sector
4
Debt
a
b
TOTAL
3
4:5
11
12
13
14
13.3. Capital expenditures and Polish foreign investment
13.3.1.
Capital expenditures
In the second half of 2008, the Polish economy started to experience the effects of the global economic
crisis. Investment activity was significantly reduced. In 2008, the rate of growth in capital expenditures
(10.7%) decreased two times compared to the previous year (in constant prices). In 2009, there was an
absolute decline in investments (of 0.8%), while in 2010 the figure was slightly positive – a 0.2%
increase. In 2011, the situation improved and investments grew by 9.4%.
In 2011, investment expenditures amounted to PLN 240.0 billion. Spending on buildings and structures
(in current prices) dominated in the structure of expenditures (61.6% against 61.8% in 2010).
Expenditure on machinery and equipment had a share of 27.5% and expenditure on transport means
reached 9.8% (against 27.8% and 9.7% in 2010, respectively).
Chart 59 Changes in investment expenditures in the years 2006-2011 in % (as compared to the previous
year), constant prices
%
30
26.2
16.8
20
10
19.2
20.4
10.7
7.7 8.6
9.4 10.8
8.8
0.2
0
-0.8
-3.2
-10
-11.9
-20
2005
2006
2007
2008
2009
2010
2011
complete statistical population
entities with the number of employees exceeding 49 persons
Source: Central Statistical Office, Concise Statistical Yearbook of Poland 2011, Statistical Bulletins.
The global economic crisis affected corporate investment activity to a particularly significant extent. In
2008, the investment growth rate decreased almost three times (to 8.8%). In 2009, there was a
decrease in corporate investments by nearly 12%, and in 2010 by over 3%. The negative trend was
overcome in 2011, when investments grew by almost 11%.
Capital expenditures of enterprises with over 49 employees97 in 2011 amounted to PLN 99.9 billion.
Expenditure on machinery and equipment dominated in the structure of expenditures (47.1% against
45.5% in 2010). Expenditures on buildings and structures accounted for 39.1% compared to 42.0%, and
expenditures on transport means – 12.4% compared to 11.3%.
Information included in this chapter refers to investments by companies employing over 49 staff members. Data
concerning sectors and sections of economy based of the PKD 2007 classification.
97
209
MINISTRY OF ECONOMY
In current prices expenditures grew by 12.0%. Out of the seven economy sectors covered by the
analysis, expenditures rose in six of them. The only section which reported a fall in expenditures (of over
35%) was water supply, sewage and waste management. The largest increase was reported in
transport and storage (of over 45%) and in mining and quarrying (of over 31%).
17 out of 22 examined sections of industrial manufacturing reported growth in investments (3 the
previous year).
Table 75 Capital expenditures in 2006-2011 (in PLN bln)
Expenditures on tangible fixed assets
Including:
Years
Total
buildings
Machines
Transport
Total
and
and
means
premises
equipment
Total population
2006
154.9
154.4
83.1
52.9
17.6
2007
191.7
191.6
103.9
63.8
22.8
2008
217.3
217.1
120.9
70.8
23.6
2009
218.6
218.4
130.3
66.6
20.1
2010
217.3
217.2
134.2
60.4
21.1
2011
240.0
239.9
147.9
66.1
23.5
Entities with more than 49 employees
2006
81.2
81.0
27.6
41.3
11.8
2007
96.3
96.2
36.4
47.8
11.5
2008
105.1
105.0
40.2
51.6
11.8
2009
94.1
94.0
38.9
46.2
8.1
2010
89.2
89.2
37.5
40.6
10.1
2011
99.9
99.8
39.1
47.1
12.4
Other
expenditures
0.5
0.1
0.2
0.2
0.1
0.1
0.1
0.1
0.2
0.1
0.0
0.1
Table 76 Capital expenditures in sections of the economy in PLN billion, current prices
Specification
2010
89.2
54.5
4.6
27.9
14.9
7.1
2.8
9.1
7.8
Economy
Industry including:
- Mining and quarrying
- Manufacturing
- Electricity, gas and water supply
- Water supply, wastes management and recultivation
Construction
Trade and repair
*dynamics indicator calculated in PLN million
2011
99.9
59.2
6.0
31.7
16.9
4.6
3.1
9.6
11.4
Dynamics
2011/2010 *
111.9
108.6
131.5
113.6
113.3
64.3
111.0
105.0
145.7
The largest growth in capital expenditures was reported in the manufacturing of: other transport
equipment (of over 70%) and tobacco products and vehicles (in both cases of over 60%). A fall in
investments was registered in the manufacturing of coke and refined petroleum products (of over 50%).
In 2011, the highest investments manufacturing were made by food products and vehicles
manufacturing sectors. They accounted for nearly 29% of all expenditures incurred in this section.
210
As in the previous year, the highest capital expenditures in 2011 were made by the following
companies98:
−
−
PGE Polska Grupa Energetyczna SA GK
PGNiG SA GK
- PLN 4.3 billion compared to PLN 5.3 billion in 2010,
- PLN 4.3 billion compared to PLN 3.7 billion in 2010,
Table 77 Investment expenditures in manufacturing by NACE divisions in PLN million
Specification
Manufacturing, including production of:
food products
beverages
tobacco products
textiles
clothing
leather and leather products
wood and wooden products
−
paper and paper products
−
printing and reproduction of recorded media
−
coke and refined petroleum products
−
chemicals and chemical products
−
pharmaceuticals
−
rubber and plastic products
−
non-metallic raw material products
−
metals
−
metal products
−
computers, electronic and optical products
−
electrical appliances
−
machinery and equipment
−
vehicles, trailers and semi-trailers
−
other transport equipment
−
furniture
2010
2011
27,924
4,448
691
349
162
96
73
596
1,413
365
3,202
1,993
423
1,923
1,805
926
1,933
775
1,100
1,108
2,692
366
858
31,708
4,739
733
581
215
103
64
577
1,467
341
1,553
2,124
530
2,545
2,604
1,290
2,366
755
1,176
1,326
4,410
630
879
Dynamics Structure in
2011/2010
2011
113.6
100.0
106.5
14.9
106.1
2.3
166.5
1.8
132.7
0.7
107.3
0.3
87.7
0.2
96.8
1.8
103.8
4.6
93.4
1.1
48.5
4.9
106.6
6.7
125.3
1.7
132.3
8.0
144.3
8.2
139.3
4.1
122.4
7.5
97.4
2.4
106.9
3.7
119.7
4.2
163.8
13.9
172.1
2.0
102.4
2.8
In 2011, there was an increase in the number of commenced investment projects and in their estimated
value (of 16.2% and 6.0%, respectively).
In 4 out of 7 examined economy sectors, an increase in the estimated value was reported, with the
highest value in transportation and storage (nearly twofold) and in the manufacturing industry (of 1/3).
However, a significant decline (of nearly 40%) was reported in mining and energy, gas and steam and
hot water supply (of nearly 35%).
Out of 17 sections of manufacturing presented by the Central Statistical Office, the estimated value rose
in 11 and decreased in 6. The highest – almost twofold – increase was noted in the manufacturing of
paper and paper products and in the manufacturing of other non-metallic mineral products. A decline of
over 40% was reported in the manufacturing of pharmaceutical products.
In 1st quarter of 2012, capital expenditures in constant prices rose by 12.3% compared to 2.6% the
previous year. In current prices it was a 15.8% increase. A raise (in current prices) was reported in 6 out
of 7 analysed sections. Mining and quarrying experienced the largest increase (of over 50%).
Expenditures in trade and motor vehicle repair industry as well as in water supply, sewage and waste
500 List, Rzeczpospolita daily, issue of 24 April 2012 Of 500 companies included on the list only some part disclosed the
size of their investment.
98
211
MINISTRY OF ECONOMY
management grew by 30%. The only section in which investment declined (by over 20%) was
construction.
Table 78 New investments in sections of economy
2008
a
b
a
b
a
b
a
b
a
b
a
b
a
b
a
b
a
b
Industry including:
Manufacturing
Electricity, gas and water supply
Water supply, wastes management and
recultivation
Construction
Trade and repair
Economy
2009
153,504
44,062
134,659
31,200
1,286
2,794
19,543
16,362
107,778
8,699
6,052
3,347
935
500
5,581
4,936
1,637
1,742
2010
143,280
35,757
118,332
24,912
1,051
3,834
18,889
8,994
93,508
9,490
4,874
2,594
784
558
4,764
3,036
1,188
2,415
137,709
48,569
112,446
31,379
786
1,784
17,730
9,249
89,119
17,992
4,811
2,355
719
642
4,662
3,005
1,526
6,836
2011
160,017
51,504
129,921
28,336
824
1,747
17,687
12,329
106,351
11,733
5,059
2,528
649
396
4,293
3,628
1,634
13,245
Dynamics
2011/2010
116.2
106.0
115.5
90.3
104.8
97.9
99.8
133.3
119.3
65.2
105.2
107.3
90.3
61.7
92.1
120.7
107.1
193.8
a/ number of new investment projects,
b/ estimated value of newly-commenced investments in PLN million (current prices).
Between 2008 and 2010, the level of corporate debt from investment loans remained stable and as at
the end of the year amounted to approx. PLN 65 billion. However, while in small and medium-sized
entities the debt grew, in case of large entities it decreased. In 2011, there was a strong revival in
corporate lending. The value of investment loans increased by PLN 18.7 billion. It needs to be noted
that the increase in corporate lending applied in particular to large enterprises which since 2009 were
reducing their level of investment loans. The object structure of growth should be regarded as positive;
debt arising from investment loans rose faster than the one due to operating loans (28.7% compared to
16.5%).
Table 79 Value of credits and deposits of enterprises in the years 2008-2012 PLN billion
Specification
1
XII. 2008 XII. 2009 XII. 2010 VI. 2011 XII. 2011 VI. 2012
2
Credits for companies:
233.3
- operating activities
106.4
- investments
65.4
- small and medium-sized
32.2
- large
33.2
- real estates
47.5
Deposits of companies
148.0
Source: Commission for Banking Supervision.
3
4
5
6
7
222.1
94.6
64.4
34.1
30.3
47.3
165.1
219.7
90.4
65.3
35.2
30.1
44.2
182.8
236.8
100.8
70.6
38.6
32.0
44.4
176.2
264.5
105.4
84.0
47.5
36.5
48.3
206.0
271.4
112.2
84.0
47.8
36.2
49.1
185.1
4:3
Dynamics %
6:4
7:6
8
98.9
95.6
101.4
103.2
99.3
93.4
110.7
9
120.4
116.6
128.6
134.9
121.3
109.3
112.7
10
102.6
106.5
100.0
100.6
99.2
101.7
89.9
The 2011 witnessed the economic revival which translated into an increase in demand for corporate
loans. In subsequent periods, the deteriorating investment climate, worse economic situation of
Poland’s major trade partners and the expected deceleration of Polish economy’s growth rate may
affect the development of bank lending. It may lead to yet another decline in demand for corporate
loans.
212
13.3.2.
Polish foreign investments
Since the beginning of the transformation period, Polish economy was undergoing systemic changes
which were accompanied by corporate changes. For a very long time, the activity of Polish companies
on foreign markets was limited mainly to exports, whereas the value of investments abroad was rather
low. A significant improvement in the investment activity of Polish companies on foreign markets
occurred after Poland joined the EU. Polish companies achieved such a development level that enables
them to effectively expand onto other markets not only via traditional forms such as trading or
establishing branch offices, but also more and more frequently by making direct capital investments.
The increase in the value of Polish FDIs affects Poland’s international investment position. Although
Poland is not ranked among the global leaders99 of FDIs, it is the leading country among the EU
Member States.
While making decisions about foreign investment, Polish companies focus in particular on the
possibilities of future development. They strive to enter new unsaturated markets, lower the costs of
business activity by investing on markets characterised by lower unit labour costs, taking advantage of
the opportunity to expand the range of products and services offered. Additionally, they expand their
investment activity in order to avoid tax barriers, protect their own competitive position or to consolidate
within the sector.
Between 1994 and 2000 the value of Polish FDIs was very low and did not exceed PLN 50 million
annually. In the subsequent years, FDIs accelerated and the value of capital transferred abroad
increased from PLN 0.3 billion in 2002 to PLN 2.8 billion in 2005. The 2006 was a record year in this
aspect. The main reason for this was a single transaction, i.e. the purchase of Mažeikiai refinery by PKN
Orlen. At that time, the outflow of Polish capital in the form of FDIs amounted to EUR 7.1 billion. In the
subsequent years, Polish companies did not manage to repeat such a good result. In 2008, the net FDI
outflow amounted to EUR 3.1 billion and to EUR 3.3 the year after.
The 2008–2009 period in the global economy was marked by the global economic crisis. However, the
Polish economy proved to be highly resistant to that shock, and so did Polish companies making foreign
investments. While the value of FDIs made by these companies in 2008 decreased slightly compared to
the previous year, in 2009 it went up, almost reaching its pre-crisis levels.
Although it did not cause a slump in Polish economy, the economic crisis did affect the activity of Polish
companies on foreign markets. Some Polish companies were forced to withdraw from their foreign
projects. Others (majority of them) took advantage of the crisis and the related decline in value of many
foreign companies to complete numerous acquisitions and expand their foreign investment portfolio.
Along with the increase in the number of implemented projects, the structure of capital invested abroad
by Polish companies also changed. The purchase of considerable shares, acquisitions or participation in
greenfield projects result in an increased capital outflow due to investment in own capital by foreign
companies. On the other hand, the value of reinvested profits, which was clearly on the increase prior to
2009, now dropped due to worse financial performance of companies. Since this category strongly
correlates with the global economic situation, it can be expected that as growth trends reinforce, its
share in the capital structure of Polish FDIs will increase.
According to the annual UNCTAD report, Polish FDI projects, totalling EUR 4.1 billion (USD 4.7 billion in 2010) constituted
only 0.36% of global FDI capital inflows.
99
213
MINISTRY OF ECONOMY
The 2010 data indicate that the value of Polish FDIs recorded in 2009 was exceeded. Polish enterprises
invested over EUR 4.1 billion abroad, which is the all-time high for Polish FDIs. The relatively high value
of 2010 investments resulted mainly from the recovery of economic activity observed since the
beginning of 2010 and was related to taking up the opportunity to purchase foreign assets, whose prices
slumped as a result of the crisis. The cumulated value of Polish FDIs is estimated at almost EUR 30
billion. According to preliminary estimates of the National Bank of Poland, the level of Polish FDIs in
2011 was close to the one reported in the previous year.
Table 80 Polish foreign direct investments in the years 2006-2011 (EUR million)
Year
2006
2007
Value
7,137
4,020
* Preliminary data based on monthly estimates.
Source: National Bank of Poland.
2008
3,072
2009
3,335
2010
4,142
2011*
4,279
Box 28 Polish foreign investments in 2011100
The year 2011 was marked by a large number of mergers and acquisitions made by Polish companies on
foreign markets. This process was facilitated by the economic situation of Poland. The decision to purchase
abroad was made especially by companies with a stable financial situation which often took advantage of
attractive bargains offered by foreign entrepreneurs. Well-established companies showed particular activity in
this area. For them, taking over a foreign company offered a chance to expand their markets, increase turnover
and build their competitive position on foreign markets.
Main locations of mergers and acquisitions in 2011
Country
Germany
Czech Republic
Lithuania
Hungary
Spain
Switzerland
Estimated/Declared
value (million EUR)
400.0
60.0
230.0
8.0
8.0
10.0
Dominant sectors
petrochemicals, construction chemicals
sanitary installations
infrastructural projects
IT
IT
petrochemicals
In March 2012, KGHM Polska Miedź S.A. made the biggest acquisition of a foreign company by a Polish one.
The company paid over PLN 9 billion for a Canadian mining concern. The acquisition will enable the Polish
concern to significantly increase its resource base and become one of the leading producers of copper.
Moreover, in 2011 numerous Polish companies announced the launch of greenfield FDIs. Some of them were
commenced at the end of 2011. There varied considerably in terms of both geographical location and the
sectors involved. They included investments in Europe (Germany, Finland) and in Asia (China, Indonesia) in
food, chemical, software and IT sectors.
In geographical terms, as of the end of 2010 Polish FDI generated the biggest value of FDIs in the
European Union Member States (73.2% of total receivables, i.e. EUR 21.4 billion). As for individual
countries, the biggest receivables were recorded for: Luxembourg (EUR 6.8 billion, approx. 23% of all
receivables), Switzerland (EUR 2.8 billion, 9.7%), the Netherlands (EUR 2.2 billion, 7.4%), the Czech
Republic (EUR 1.9 billion, 6.4%), United Kingdom (EUR 1.9 billion, 6.4%), Germany (EUR 1.8 billion,
5.6%) and Lithuania (EUR 1.6 billion, 5.5%).101
For several years now, there has been a clear upward trend in the value of Polish investments abroad.
Preliminary balance of payments data for 2012 indicate that the trend continues despite the global crisis.
Estimates of the Strategy and Analyses Department based on the data from the Bloomberg.
General and sectoral data on FDI differ due to the use of data sources with various revision periods. General data should
be treated as the most current ones.
100
101
214
Between 2003 and 2011, the accumulated value of foreign investment made by Polish companies
increased 20 times. In the long run, it is expected that this upward trend of Polish FDIs will not reverse
either. It will be the result of the growing expansion of Polish companies that will start to discover its
benefits and gain competitive advantage which will allow them to undertake more investment projects.
Increasing competitiveness and managerial staff resources may prove to be valuable assets of Polish
companies in their foreign expansion.
Despite the increase in the value of Polish foreign investments, it is not possible that Poland would
switch from being a capital importer to a significant source of capital in the nearest future. On the one
hand, it will be the result of continued policy aimed at attracting foreign investors to Poland. On the other
hand, difficulties accessing external and internal sources of financing may become the barrier faced by
Polish enterprises investing outside the country.
13.4. FDI inflow to Poland
13.4.1.
Role and importance of companies with foreign capital
Over the years, companies with foreign capital participation have become a permanent element of the
Polish economy. Today, it would be difficult to imagine Polish economy without the presence of foreign
entities. This holds true particularly for sectors such as automotive, electronics and household
appliances industries. The role and importance of foreign companies in Polish economy remain highly
significant.
Revenues of companies with foreign capital (in total) in 2010102 amounted to PLN 1,085.6 billion and
were 5.8% higher than in the previous year. The highest revenue from total activity was generated by
entities operating in the industrial manufacturing sector – PLN 469.2 billion, which accounted for 43% of
revenues of all entities with foreign capital, as well as in trade and repairs sector – PLN 349.4 billion.103
Companies with foreign capital allocate considerable resources for investments and expanding the
scope of their activity In 2010, these companies earmarked PLN 61.6 billion for the acquisition of new
fixed assets, which was 7.9% less than in the previous year. The largest sums were invested by
companies from the manufacturing sector (33.6% resources spent on fixed assets of all entities with
foreign capital participation). Next positions are taken by companies dealing in trade and repairs as well
as in information and communication whose share accounted for 13.2% and 12.2% of expenditure on
fixed assets.
Companies with foreign capital also play a very important role in the Polish foreign trade turnover. Many
large foreign companies operating in Poland are also among the biggest exporters. These are mainly
companies from automotive industry and manufacturers of equipment, electronics and household
appliances. In 2010, exports activity was carried out by 9,475 business entities which accounted for
41% of all companies with foreign capital. The value of their exports was higher by 13.1% than in the
previous year. Foreign companies also have significant share in Polish imports. In 2010, value of their
imports was higher by 7.6% compared to the previous year. The most important items in imports were
commodities and materials for production – 45.7%.
102
103
The 2011 data will be presented by the Central Statistical Office at the end of 2012.
Data concerning the entire population.
215
MINISTRY OF ECONOMY
Foreign investments positively influence the labour market, especially when these are made in the form
of greenfield investments. In recent years, these types of investments have been increasing their share
in the total number of FDIs. The number of employees in companies with foreign capital at the end of
2010 amounted to 1,483.8 thousand104. Compared with the previous year, the number of employees
decreased by 57.1 thousand people105, which resulted from a gradual improvement in economy after its
2009 slowdown.
Table 81 Basic financial categories of companies with foreign capital with the number of employees
exceeding 9 persons as compared to entities submitting balance sheet in the years 2008-2010 (as at the
end of year) in PLN million
Number
of
companies
Total
revenues
including
exports
a
b
50,681
51,809
2,346,059
2,353,877
306,141
316,825
gross
95,963
116,342
net
77,029
96,340
c
51,622
2,545,035
357,530
133,462
112,242
Specification
Entities
submitting
balance sheet
including:
Companies
with foreign
capital.
Financial result
(balance)
Number of
entities which
generated profit
gross
net
41,143
40,693
41,229
40,880
41,597
41,301
a
8,328
930,711
219,213
36,344
27,539
4,919
4,845
b
8,230
968,716
225,788
55,042
45,224
5,324
5,250
c
8,338
1,031,889
245,075
55,111
45,399
5,588
5,531
a
3,594
459,156
194,629
17,779
13,506
2,064
2,041
Industry
b
3,385
466,235
198,950
26,113
22,007
2,275
2,247
c
3,389
503,397
224,788
28,431
23,812
2,404
2,374
a
2,090
299,149
4,611
8,922
6,758
1,299
1,283
Trade and
b
2,140
313,028
6,026
8,638
6,566
1,373
1,354
repair
c
2,184
331,598
6,191
10,630
8,647
1,477
1,463
a/ data for 2008 r. b/ data for 2009 r. c/ data for 2010 r.
Source: Business activities of companies with foreign capital in 2010, Central Statistical Office, December 2011.
Number of
employees
thousand
persons
5,244.9
4,991.3
5,112.5
1,498.5
1,426.7
1,483.8
807.0
718.9
743.8
321.1
325.0
342.7
In the long run, a tendency for the share of foreign companies in imports to decrease was observed.
However, their share in exports was gradually increasing. 2009 brought a reversal of the trend in
imports, which could be linked to the fact that goods earmarked for re-selling had a large share in
imports. In the case of exports, 2007 saw a rise in the participation of foreign companies in Polish
exports. The trend did not continue however in 2009 and 2010. Due to the fact that adverse events have
affected mainly Poland’s main commercial partners, a significant slowdown was also noticed in trade
dynamics of companies operating in Poland, including companies with foreign capital. In comparison to
2006, the growth in imports106 by foreign companies operating in Poland (48.6%) in 2010 was higher
than in the case of the total Polish imports (36.1%). As for exports, the growth on the part of foreign
entities was lower (36.6%) than the average for all businesses (39.9%). This shape of relations between
exports and imports, which also occurred in the previous year, proves that the economic activity of
foreign companies in Poland continued to experience the negative effects of the crisis to a greater
extent than the Polish companies did, which resulted largely from the pro-exports nature of their
operations and sales structure. The high dynamics of imports and a surge of the share of imports of
foreign companies in total imports may indicate that in 2010 stocks were further rebuilt. In the
subsequent years, this will facilitate increased production and growth in exports by companies with
foreign capital.
Data concerning the entire population.
Economic activity of companies with foreign capital in 2010, Central Statistical Office, December 2011. Data concerning
the entire population.
106 Current prices in PLN.
104
105
216
Table 82 Value of exports and imports and shaker of companies with foreign capital in Polish foreign
trade turnover (in PLN bln) in 2006-2010
Value of Polish foreign trade
exports
2006
343.8
2007
386.6
2008
405.4
2009
423.2
2010
481.1
imports
394.0
456.8
497.0
463.4
536.2
Share of foreign companies in
Polish trade turnover (%)
exports
imports
62.4
55.3
63.4
57.9
61.9
56.1
61.2
65.0
60.9
60.5
Companies with foreign capital
exports
214.5
245.3
251.0
259.1
293.0
imports
218.1
264.8
279.0
301.4
324.2
Table 83 Revenues from sales, exports-to-sales ratio and employment in selected foreign companies in
Poland in the years 2008-2011
Revenues from sales in
PLN million
2009
2010
2011
Company
Fiat Auto Poland
Volkswagen Poznań
Philips Lighting Poland
BSH, Warszawa
GlaxoSmithKline
Electrolux
Indesit, Łódź
Toyota Motor Manufactu-ring,
Wałbrzych
LG Electronics Mława
LG Electronics Wrocław
Total
Exports-to-sales ratio in
%
2009
2010
2011
Employment
(full-time)
2009
2010
2011
19,434
7,743
4,150
3,625
4,282
2,633
2,207
16,335
7,774
3,995
3,590
5,060
2,758
2,784
16,514
9,822
4,249
3,617
4,929
3,120
2,883
76.0
97.7
89.0
74.9
62.0
69.6
74.0
77.0
97.8
95.6
77.0
67.0
69.9
75.0
81.0
98.2
89.0
73.7
66.4
72.2
83.9
6,203
6,194
6,452
1,405
1,623
3,606
2,860
6,365
6,129
5,825
1,553
b,d,
3,563
2,907
5,841
6,152
5,467
1,619
1,609
3,836
3,010
2,647
2,242
2,307
94.3
97.1
96.9
1,926
1,850
1,777
5,530
4,682
56,933
5,891
5,494
55,923
4,550
4,284
56,275
92.8
96.0
x
97.3
93.3
x
94.0
90.7
x
1,584
1,725
33,578
1,632
1,851
31,675
2,497
1,770
33,578
Source: List of 500 largest companies in Poland according to ‘Rzeczpospolita’ newspaper.
13.4.2.
FDI inflow to Poland
In terms of FDI inflow to Poland, 2010 continued to reflect the crisis trends present in this regard
globally. After the record-breaking 2007 when Poland attracted more than EUR 17.2 billion, in 2008 and
2009 FDI values were similar and on average amounted to approx. EUR 9.7 billion, according to data of
the National Bank of Poland. In 2010, FDI inflow to Poland was significantly lower.
In 2010, the relatively good results of Polish economy did not translate directly into the increase flow of
FDIs into Poland107, although on the other hand they could determine the limited scope of decrease in
the value of FDI, which resulted from the continuing depression in the global economy. Difficulties
experienced in 2008 and 2009 by the automotive industry, manufacturers of consumer electronics and
home appliances exporting the majority of their products to EU countries adversely affected their
financial results in Poland and consequently reduced their ability to finance new investments. Moreover,
the 2010 result was influenced by the agreement between Eureko and PZU, pursuant to which Eureko
completely withdrew from investing, which translated into a fall in the purchase of shares.
Additionally, it should be remembered that the decrease in the share of own capital in the FDIs in Poland which was
observed since 1Q10 is a result of market evaluation. Before that time, historical data was used in order to make estimates.
107
217
MINISTRY OF ECONOMY
bn EUR
Chart 60 FDI inflow to Poland in the years 2001-2011 in EUR billion
17.2
18
15.7
16
14
12
10.2
10
8
10.1
8.3
6.7
6.4
6
10.3
9.3
4.4
4.1
2002
2003
4
2
0
2001
2004
2005
2006
2007
2008
2009
2010
2011*
Source: National Bank of Poland, *preliminary data based on quarterly estimates.
When comparing the FDIs inflow to Poland in particular years, one has to consider their structure. At the
beginning of the XXI century large privatisations constituted a considerable share of all FDIs, but since
2004 the percentage of this kinds of investments has decreased systematically.
The importance of other types of FDIs is on the rise, especially that of reinvested earnings108. Their
growth proves that the financial situation of foreign investors is good. It also confirms that foreign
companies plan to continue making investments and to expand their activities in Poland. This positive
trend temporarily discontinued in 2008, when this type of FDI was reported to be on the decline.
Observed since 2nd half of 2008, the economic bust which plagued Poland and the World and which
decreased profits from conducting business resulted in a decline of companies’ finance, increase in risk
aversion and reduction of new investments in order to maintain their current liquidity. It is also worth
noting that the phenomenon of crisis in profit transfer from companies with foreign capital participation to
their parent companies occurred only occasionally.
In 2010, the value of reinvested earnings amounted to EUR 4,341 million (against EUR 3,582 million109
in 2009). The improvement of the economic situation in Poland and the World observed in 2010, and
consequently, the increase in production, translated into increased revenues of foreign companies,
which in turn allowed companies to increase capital expenditures on new projects, as well as to focus
on developing the existing business activity.
According to preliminary estimates of the NBP, in 2011 Poland attracted EUR 10.3 billion110 in the form
of FDI. Large number of FDI project in Poland in 2011 was influenced by mergers and takeovers. Based
on projections about the size of the inflow of foreign direct investments in 2012 analysts claim that their
value will continue to grow by approx. 5–8% when compared to 2011.111 In the times of economic
slowdown in the European Union, which constitutes the main source of FDIs in Poland, that would be a
positive development.
108 Reinvested earning is included only in the case of direct investments. This does not concern portfolio investments or other
investments. According to the rules for drafting a financial balance sheet, reinvested profit is treated as if it was paid out to a
foreign investor and invested by him only later. It follows that the fact that a direct investor owns a considerable share of a
company which is making a direct investment (at least 10%) is important when making the decision whether the profit should
be left in the company.
109 Value calculated on the basis of quarterly data.
110 Specific data on FDIs inflow to Poland in 2011 is will be published by the NBP at the end of 2012.
111 Estimates by the Polish Information and Foreign Investment Agency.
218
Table 84 Structure of FDI inflow to Poland in the years 2006-2011 EUR million
Period
Equity
Reinvested earnings
Investor credits
2006
5,841
4,558
5,342
2007
5,613
6,782
4,847
2008
6,698
-713
4,143
2009
3,799
3,582
1,962
2010
2,258
4,341
97
2011*
516
3,708
6,116
Total capital inflow
15,741
17,242
10,128
9,343
6,696
10,340
We should also mention changes in the sectoral structure of foreign companies willing to invest in
Poland. Apart from investments in the automotive industry and in machine industry, an increasing
amount of money is directed to firms working in sectors which allow foreign companies to lower their
costs. These companies form a part of the service sector and include business process outsourcing
centres, shared services centres and research and development centres. Such kind of investments
demand less capital and create many jobs.
Box 29 Programme to support investments of high importance to the Polish economy for 2011–2020
In July 2011, the Council of Ministers adopted the Programme for supporting investment of major importance to
the Polish economy for the years 2011–2020. The Programme is aimed at increasing the innovativeness and
competitiveness of Polish economy by supporting new investments made by Polish and foreign companies. The
Programme’s objectives set out to support key sectors: automotive, electronics, aviation, biotechnological,
modern services and R&D. Investors from these sectors may apply for government subsidies (other entities may
apply as well provided that their investment is worth at least PLN 1 billion or that they create at least 500 new
jobs). The government willingly grants its support for projects which involve construction of shared services
centres (SSCs) and business process offshoring centres (BPOs) Foreign investors in Poland make use of
investment tax credits and are benefit from special economic zones and government subsidies which are a form
of support for investments which generate new work places. They also use EU funds and European research
and development programmes through companies registered in Poland. Positive economic outlook for Polish
economy as well as its relatively high competitiveness favour continuing inflow of foreign investments.
13.4.4.
FDI by country of origin of capital
The composition of the group of countries making direct investments in Poland has remained virtually
unchanged over the years. Key investors in Poland are the companies from Europe, in particular those
coming from the EU countries. In 2010, investments from the EU countries made up 85.4% of the total
value of FDI inflow to Poland. The largest capital was invested by companies from Luxembourg,
Germany and Italy (EUR 1.9 billion, EUR 1.6 billion and EUR 1.0 billion).
Out of the total amount of EUR 150.4 billion invested in Poland by the end of 2010, the largest share
was coming from the EU countries (86.0%). The largest FDIs was invested in Poland by companies
from:
− the Netherlands EUR 26.8 billion,
− Germany
EUR 20.4 billion,
− France
EUR 18.7 billion.
219
MINISTRY OF ECONOMY
Table 85 Geographical breakdown of the FDI inflow to Poland by countries of investment capital origin
and liabilities as at the end of 2010, in EUR million
1
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
1.10
1.11
1.12
1.13
1.14
1.15
1.16
1.17
1.18
1.19
1.20
1.21
1.22
1.23
1.24
2
Countries
Europe, including:
EU-15
Austria
Belgium
Denmark
Finland
France
Greece
Spain
Ireland
Luxembourg
Netherlands
Germany
Portugal
Sweden
United Kingdom
Italy
Cyprus
Slovenia
Switzerland
Norway
Ukraine
Russia
Hungary
Czech Republic
North American
countries, including:
USA
Asia, including:
China
Singapore
Japan
South Korea
2006
14,030
13,362
- 414
210
187
18
840
15
1,137
332
3,639
1,345
2,803
376
275
1,169
1,430
31
10
563
- 78
- 91
- 32
128
22
2007
15,029
13,359
872
326
514
320
1,891
0,1
567
473
1,291
1,888
2,968
114
798
648
425
298
28
540
155
309
- 251
34
150
2008
10,207
9,665
504
710
200
208
508
0,5
296
213
1,377
1,575
1,647
106
1,101
385
322
448
47
119
54
-33
-30
6
-108
456
846
307
2.1
395
847
311
3.
785
370
-211
3.1
20
70
97
3.2
92
-44
-5
3.3
254
194
-29
3.4
416
25
-301
Total
15.576
17,196
10,085
Source: National Bank of Poland, Foreign direct investments in Poland.
2009
8 942
8,124
486
107
227
-99
1,375
-56
394
225
1,250
480
2,137
55
940
152
459
209
-70
185
64
-28
-70
99
2010112
6,625
5,709
327
32
220
132
-101
-29
252
218
1,945
-2,150
1,627
252
343
396
1,020
843
-41
510
117
52
40
195
90
1,019
-39
-158
965
146
-145
26
177
-76
9,863
-131
-158
8
23
-172
16
6,686
At the end of 2010
137.641
129.493
5.562
3.690
2.974
1.299
18.689
5
4.954
3.870
13.132
26.817
20.394
1.340
5.257
5.612
10.528
3.341
119
5.764
575
396
25
508
332
9.470
9.271
2.835
246
109
1.158
566
150,441
Chart 61 Liabilities due to FDI as at year end in the years 2003-2011
160
140
121.3
bn EUR
120
152.8
2010
2011*
128.5
116.6
95.6
100
76.8
80
60
150.4
63.6
45.9
40
20
0
2003
2004
2005
2006
2007
2008
2009
General and sectoral data on FDIs differ due to the use of data sources with various revision periods. General data should
be treated as the most current ones.
112
220
13.4.5.
The sectoral breakdown of FDI inflows
By the end of 2010, foreign companies invested the biggest share of capital in the industry (EUR 52.7
billion), which comprised 35% of the total FDI value in Poland, with over EUR 47 billion invested in the
manufacturing sector. As far as the manufacturing sector is concerned, the largest amount of capital
was invested in the companies producing metals and metal products. These companies overtook the
last year’s leaders, i.e. companies producing foodstuffs, beverages, tobacco products and transport
equipment.
The lower amount of capital invested in the automotive industry does not mean that its significance is
decreasing. Automotive branch remains crucial for the whole economy. This results from the fact that
the greater part of its output is exported to foreign markets. Additionally, the development of this sector
in Poland is responsible for the growth in the production of subcontractors. Foreign companies operating
in the transport equipment manufacturing sector have been in the forefront of the biggest exporters for
many years. The biggest investors in the Polish automotive industry feature large international car
companies such as: Fiat, General Motors, Isuzu, Volkswagen, Toyota, Volvo, Man and others.
Recently, many investments in Poland have been made in the electronics sector. Large investments
were made by companies specialising in manufacture of computers (Dell in Łódź) and TV sets (Sharp,
Toshiba, LG Electronics and Orion). These investments made Poland one of the leaders in the
production of modern LCD monitors and TV sets which use the latest global technologies.
Owing to foreign investments Poland has become an important producer and exporter of household
appliances. As far as this market segment is concerned, established companies such as German BSH,
Italian Indesit, Swedish Electrolux, and Korean LG have all made investments in Poland. Investments in
this sector are crucial for the economy since, as is the case with the automotive industry, they entail
further At the end of 2009 a large investment in the production of household appliances was made by
Samsung. Korean giant acquired refrigerator and washing machine manufacturing facilities Amica in
Wronki and promised further large investment. Global corporations maintaining their factories in Poland
are starting to invest in R&D. Many top specialists find employment in R&D centres established by them.
The following companies opened their R&D centres in Poland: Microsoft, Samsung Electronics, General
Electric, Siemens, Google and IBM.
In 2010, as was the case in previous years, substantial foreign investments were made in the service
sector. An increased importance of this sector in the structure of FDIs made in Poland shows that new
trends are developing. The number of investments in the industry, including those made in the
manufacturing, is falling. In 2010, foreign investors invested a lot of their capital in the “professional,
scientific and technical activities” section. The larger part of this money was directed to central
companies and financial consultancy firms operating in management. In 2010, the value of FDIs made
only in this area amounted to EUR 1 billion and by the end of 2010 reached a total of EUR 8.1 billion.
The scale of these investments proves that Poland is an important localisation concerning service
centres (BPOs in particular) in Europe. In terms of the number of BPO centres in 2011, with its 337 BPO
centres, Poland was the leader among Eastern and Central European countries. It is estimated that in
2013 sales generated by these centres in Poland will amount to PLN 15 billion. Many companies
opened more than one such centre providing modern services. In 2012, Hewlett-Packard decided to
make another investment in Poland
221
MINISTRY OF ECONOMY
Table 86 FDI in Poland by sections and divisions of NACE in the year 2010
Type of activity
Capital invested in 2010
(EUR mln)*
23.7
3.7
1,605.0
339.7
295.3
288.0
251.8
450.4
FDI At the and of the 2010 Structure
(EUR mln)**
in %
578.7
0.4%
294.3
0.2%
47,065.3
31.3%
6,809.2
4.5%
9,106.4
6.1%
3,981.1
2.6%
6,011.1
4.0%
4,834.6
3.2%
Agriculture, forestry and fishing
Manufacturing including production of:
Metal and metal products
Food products and beverages, tobacco products
Chemical products
Vehicles, trailers, semi-trailers
Electricity, gas and water supply
Water supply, sewerage
and waste management, remediation
47.4
Construction
289.4
Services, including:
4,286.6
Wholesale and retail trade, repair of motor
vehicles and motorcycles
1,083.1
24.0
Accomodation, food services
10.9
323.1
1,106.3
525.6
1,084.2
Services business administration
and support service activities
83.4
Education
7.2
Health care and social assistance
6.4
Cultural activities, entertainment and recreation
-9.0
Other service activities
2.4
TOTAL
6,686.8
Source: National Bank of Poland, preliminary data.
* converted from PLN at the average annual exchange rate of 2010 EURPLN = 3.9946
** converted from PLN at the exchange rate at the end of 2010 EURPLN=3.9603
13.4.6.
476.8
7,005.3
89,703.4
0.3%
4.7%
59.6%
23,364.4
2,031.8
779.4
6,976.2
35,057.4
10,159.7
9,148.3
15.5%
1.4%
0.5%
4.6%
23.3%
6.8%
6.1%
1,836.6
9.4
189.5
57.1
69.9
150,441.4
1.2%
0.0%
0.1%
0.0%
0.0%
100%
Poland’s investment attractiveness
A growing interest of investors in Poland is reflected in reports and rankings of investment
attractiveness. The assessment of investment climate made by foreign investors has been improving
each passing year. According to the Fortresses and footholds. Emerging market growth strategies,
practices, and outlook report by Deloitte, Poland is the second best Eastern European country (right
behind Russia) offering the greatest revenue opportunities over the next three years.
Ernst & Young consultants claim that Poland enjoys an edge over other countries from the region as far
as the possibility to make there investments based on service centres in concerned. The 2012
European attractiveness survey conducted by Ernst & Young Poland ranked at 8. place in terms of
number of new FDI projects in 2011 and 6. place in terms of new jobs created by FDIs inflow. According
to the 2011 survey, Poland reaped 121 FDI projects, which is down by 15% compared to the previous
year. Although the number of FDI projects went down year on year, their quality went up. A growing
number of FDI projects are made in the services sector. Also, the number of jobs created thanks to FDIs
decreased when compared with 2010. In 2011, inflow of FDIs resulted in the creation of 7.8 thousand
new jobs. Over the course of next three years, Poland will become the second most attractive European
country for making investments, losing only to Germany and overtaking the United Kingdom, Russia and
France. Ernst & Young analysts consider that the main advantage of Poland lies in its stable
macroeconomic situation. They also praise Poland’s well-qualified and productive workers, a probusiness environment and transparent tax and legal system.
222
The World Investment Report 2011 by UNCTAD ranked Poland 6th top host economy for FDI. When
compared to 2010, this means an improvement by 6 positions. Poland falls back only behind China, the
United States, India, Brazil and Russia.
According to the authors of the report, Central and Eastern Europe will maintain its position as one of
the most attractive locations for new FDI projects. Against the backdrop of the whole region, Poland will
be characterised by very optimistic economic growth outlook, relatively low labour costs as well as by
large and expanding internal market.113
13.5. Innovativeness of Polish enterprises and their environment
13.5.1. Innovativeness of Polish enterprises114
As in 2010, the Innovation Union Scoreboard 2011 ranks Poland among moderate innovators.
According to the results of the study, Poland’s Summary Innovation Index (SII) is lower than the average
for all countries of the European Union, but higher (1.79%) than the EU average growth rate of this
index (0.85%).
Chart 62 Summary Innovation Index (SII) for selected countries
0.7
0.6
0.5
0.4
0.3
0.2
0.1
Latvia
Bulgaria
Lithuania
Romania
Poland
Slovakia
Malta
Greece
Hungary
Spain
Czech Republik
Portugal
Italy
Estonia
Cyprus
Slovenia
EU27
France
Ireland
Luxembourg
Austria
Netherlands
United Kingdom
Belgium
Finland
Germany
Danemark
Sweden
0.0
Source: European Commission, http://ec.europa.eu/enterprise/policies/innovation/facts-figures-analysis/innovationscoreboard/index_en.htm, INNOVATION UNION SCOREBOARD 2011 The Innovation Union's performance scoreboard for
Research and Innovation, 7 February 2012.
Compared to 2010, Poland dropped down by one position in the Innovation Union Scoreboard (IUS)
2011. Several factors came into play. Poland noted a fall in the number of PhD holders and doctoral
The European attractiveness survey by Ernst &Young is a periodic survey conducted since 2004. The 2012 edition
included contributions from over 840 managers and investor representatives from over 40 countries. The survey takes into
account the opinions and numerical data on foreign investments in the year preceding the year in which a given edition is
published.
114 In June 2011, the Central Statistical Office branch in Szczecin published the study “Science and Technology in 2009” (pol.
Nauka i Technika w 2009) The publication covers a wide range of issues concerning the statistics of science and technology
and allows the use of statistical variables to indicate the factors that stimulate the development of innovative economy. The
study
can
be
downloaded
from
the
Central
Statistical
Office
website
(http://www.stat.gov.pl/gus/nauka_technika_PLK_HTML.htm).
113
223
MINISTRY OF ECONOMY
students from outside the EU, there was a slight decline in the number of venture capital investments
and fewer utility model applications were filed. At the same time there was an increase in 7 indicators
comprising the Summary Innovation Index IUS, including the most important ones in terms of innovation
development, i.e. public R&D expenditure to GDP ratio and private R&D expenditure to GDP ratio.
Moreover, the share of employment in knowledge intensive activities as well as the share of medium &
high-tech product exports and of knowledge intensive services exports, while license and patent
revenues from abroad tripled.
Table 87 Innovation indices for Poland and EU
Indices EIS
Poland
EU-27
ENABLERS
2010
2011
2010
2011
Human resources
1.1.1 New doctorate graduates
0.9
0.8
1.4
1.5
1.1.2 Population completed tertiary education
32.8
35.3
32.3
33.6
1.1.3 Youth with upper secondary level education
91.3
91.1
78.6
79
Open excellent and attractive research systems
1.2.1 International scientific co-publications
186
198
266
301
1.2.2 Scientific publications among top 10% most cited
0.04
3.68
0.11
10.73
1.2.3 Non-EU doctorate students
2.27
1.98
19.45
19.19
Finance and support
1.3.1 Public R&D expenditure
0.41
0.53
0.75
0.76
0.043
0.034
0.110
0.095
1.3.2 Venture capital
FIRM ACTIVITIES
Firm investments
2.1.1 Business R&D expenditure
0.18
0.2
1.25
1.23
2.1.2 Non-R&D innovation expenditure
1.25
1.25
0.71
0.71
Linkages & entrepreneurship
2.2.1 SMEs innovating in-house
13.76
13.76
30.31
30.31
2.2.2 Innovative SMEs collaborating with others
6.40
6.4
11.16
11.16
2.2.3 Public-private co-publications
2.5
2.5
36.2
36.2
Intellectual assets
0.31
0.34
4.00
2.3.1 PCT patent applications
2.3.2 PCT patent applications in societal challenges
0.06
0.06
0.64
0.64
2.3.3 Community trademarks
2.82
2.95
5.41
5.59
2.3.4 Community designs
4.71
4.4
4.75
4.77
OUTPUTS
Innovators
3.1.1 SMEs introducing product or process innovations
17.55
17.55
34.18
34.18
3.1.2 SMEs introducing marketing/organisational innovations
18.65
18.65
39.09
39.09
Economic effects
3.2.1 Employment in knowledge-intensive activities
8.87
9.1
13.03
13.5
3.2.2 Medium and high-tech product exports
51.06
52.39
47.36
48.23
3.2.3 Knowledge-intensive services exports
30.60
33.05
49.43
48.13
3.2.4 Sales of new to market and new to firm innovations
9.84
9.84
13.26
13.26
3.2.5 Licence and patent revenues from abroad
0.02
0.06
0.21
0.51
Source: Pro Inno Europe, Inno-Metrics, Innovation Union Scoreboard 2011. Comparative analysis of innovation performance,
February 2012.
The indicators show that the Polish economy’s innovation level remain unsatisfactory. Their changes do
not provide any insight into progress in the area. According to analyses by the Central Statistical
Office115, innovation activity116 of Polish enterprises between 2008 and 2010 declined slightly compared
Innovative
Activity
of
Enterprises
in
Działalność
Innowacyjna
Przedsiębiorstw
2008-2010,
www.stat.gov.pl/cps/rde/xbcr/gus/PUBL_nts_dzialanosc_innowacyjna_2008-2010.pdf.
116 An innovative enterprise is one which in the examined period implemented at least one product or process innovation or
carried out in this period at least one innovative project that has been cancelled or abandoned (unsuccessful) or that has not
been finished by the end of the period (i.e. it is ongoing).
115
224
to two previous years. Innovative enterprises comprised 18.1% of the total number of entities in industry
and 13.5% in the services sector. The percentage of innovative enterprises in industry and services was
higher among public sector enterprises (28.7% and 23.5%, respectively). Considering the size of
enterprises, the highest percentage of innovative enterprises was achieved by entities with more than
499 employees. When considering the administrative division of the country, Podkarpackie Voivodeship
has the highest percentage of innovative companies operating in the field of industry (21.8%), whereas
Mazowieckie Voivodeship is the leader in terms of the service sector (16.3%). The lowest indicator
values were reported for Łódzkie and Podlaskie Voivodeships (14.2% and 9.2%, respectively).
When considering the type of business, the largest percentage of innovative enterprises in the field of
industry was reported in the section Production of basic pharmaceuticals, drugs and other
pharmaceutical products (54.9%). In the case of enterprises from the services sector, this percentage
was higher in the section Insurance, reinsurance and pension funds, in which 61.0% of companies are
innovative enterprises.
If a stricter definition is applied, the percentage of innovative enterprises117 in industry and in the
services sector between 2008 and 2010 in the total number of such enterprises comprised 17.1% and
12.8% respectively (against 18.1% and 14% between 2007 and 2009).
Recent studies confirm also that more enterprises decide to implement process innovations rather than
product innovations (12.9% as opposed to 12.1%). Between 2008 and 2010, 13.5% of industrial
companies with over 9 employees implemented marketing innovations, whereas organisational
innovations were implemented by 13.0% of industrial companies, and in both cases a slightly larger
number of enterprises implemented such innovations in the service sector than in industry (15.5% and
15.2%, respectively).118
Table 88 Enterprises, which develop process and/or product innovations (% of enterprises, by size
clases)
Employment
Industry sector
Service sector
2007 - 2009
2008-2010
2006 - 2008
2007 - 2009
2008-2010
Total
18.1
17.1
16.1
14.0
13.5
10-49
10.9
9.6
13.1
11.6
9.6
50-249
30.1
30.2
25.3
20
21.7
more than 249
59.0
59.0
48.2
45.0
48.8
more than 499
69.1
60.0
Statistics on innovation of enterprises do not apply to companies with fewer than 10 people because they are not included in
the statistics.
Source: Innovation activity in 2008-2010, Central Statistical Office, 2012.
2006 - 2008
21.4
14.5
33.3
60.9
In 2010, expenditure on innovative activity119 of companies from the industrial sector amounted to
almost PLN 23.8 billion (an increase of PLN 1 billion when compared to 2009). In the service sector it
equalled PLN 10.8 billion (an increase of PLN 2.5 billion). In companies from the industrial sector
expenditure amounted to 73.7% of all expenditure used for innovation activity. In the service sector it
amounted to 88.7%.
An innovative company in the area of product and process innovation is a company which in a given reporting period
launched on a market at least one product or process innovation (a new or significantly improved product or process).
118 Innovative activity of companies 2008-2012, Central Statistical Office 2012.
119 Expenditure on innovation includes: the purchase of know-how in the form of patents, unpatented inventions, utility
models, trademarks, technical services, software used for implementing product and process innovations, machinery and
technical equipment, staff training, marketing, R&D work and feasibility studies.
117
225
MINISTRY OF ECONOMY
When analysing the structure of expenditure on innovation in terms of the number of the employed, the
highest expenditure was made by both industry and service sector enterprises with over 499
employees. In general, it seems to be true that the larger the company, the more frequently it engages
in innovative activity. This stems from the fact that larger enterprises have more potential to pursue
innovative activity, as they have better access to qualified staff, greater financial resources and more
professional managerial staff. Moreover, large enterprises operate on more demanding markets on
which they compete with other foreign companies. In 2010, expenditure by these enterprises constituted
64.3% of all expenditure on innovation incurred by industrial enterprises and 74.6% of expenditure
incurred by service sector enterprises.
In 2010, the main source of financing expenditure on innovation was enterprises’ own capital that
accounted for 75.2% of all relevant expenditure incurred by industrial enterprises and 85.7% of
expenditure by service sector enterprises. Entrepreneurs continue to be quite cautious when it comes to
increasing their spending on innovation. Being uncertain as to the success of implementations, they do
not regard innovations as a source of their future competitive advantage, and therefore they still rarely
use external sources of financing.
Given considerable costs and the risk inherent in innovative activity, cooperation between various
entities that enables enterprises to reduce both and to exchange expertise and experience plays a
crucial role in the process of developing and implementing innovations. Between 2008 and 2010, 33.8%
of innovative enterprises in the field of industry and 32.8% of entities from the service sector cooperated
in innovation. Public sector enterprises more willingly cooperated on innovation projects – such
cooperation was maintained by 45.5% of innovative enterprises in the field of industry and 38.6% of
entities from the service sector. Almost three quarters of innovative industrial companies with over 499
employees cooperated in innovation, whereas in the service sector it was over a half.
Table 89 Cooperation in innovation activity (% of active innovative enterprises, by size classes)
Employment
Industry sector
2007 - 2009
2008-2010
Total
33.7
33.8
10-49
29.4
20.6
50-249
37.2
35.6
more than 249
59.5
60.9
more than 299
71.8
Source: Innovation activity in 2008-2010, Central Statistical Office, 2012.
2006 - 2008
38.6
25.8
44.6
65.1
2006 - 2008
40.6
34.7
46.5
69.9
Service sector
2007 - 2009
28.2
20.9
39.7
50.7
2008-2010
32.8
27.8
35.8
53.0
56.1
When analysing companies’ cooperation in innovation between 2008 and 2010, their willingness to
cooperate on cluster initiatives was also assessed. Between 2008 and 2010, out of total number of
entities cooperating in innovation the percentage of enterprises cooperating in clusters was higher
among industrial companies (12.2%) than in the service sector (10.5%). Between 2008 and 2010, in the
case of both industrial and service sector enterprises cooperation on cluster initiatives applied mainly to
the public sector, where 22.6% of innovative industrial enterprises and 18.4% of service sector
companies being members of clusters.
226
Box 30 Cluster and cluster initiative
According to the definition by M.E. Porter, business cluster is a geographic concentration of interconnected
businesses, specialised suppliers, service providers, companies operating in similar sectors and associated
institutions (universities, standardization entities, trade associations and financial institutions) which operate in
particular branches. They compete with each other, but they also cooperate. For the purpose of conducting
research on innovation, cluster initiative is understood as cooperation links established formally on the basis of a
letter of intent, association agreement, consortium agreement, etc.
Among the characteristics of our economy, the low share of R&D expenditure is disturbing. The
expenditure on R&D in 2010 amounted to PLN 10.4 billion. Although the nominal increase in resources
allocated for research (especially between 2007 and 2010) brought some improvement in R&D
financing and the average R&D expenditure to GDP ratio increased from 0.57% in 2007 to 0.74% in
2010, it is only one-third of the GERD/GDP ratio for 27 European Union countries. In addition, Poland is
dealing with a relatively low share of expenditure made by businesses and relatively higher public
outlays. In 2010, the share of enterprises in R&D financing was 26.6%, thus their participation
decreased for the second year in a row (30.9% in 2008).
Table 90 Gross Domestic Expenditure on R&D (GERD) to GDP ratios according to institutional sectors in
the years 2000, 2005-2010
2000
2005
2006
Total expenditure (GERD/GDP)
0.64
0.57
0.56
Government expenditure
0.40
0.21
0.21
(GOVERD/GDP)
Business expenditure (BERD/GDP)
0.14
0.18
0.18
Higher education expenditure
0.18
0.17
(HERD/GDP)
Source: Science and Technology in 2010, Central Statistical Office.
2007
0.57
0.20
2008
0.60
0.21
2009
0.67
0.23
2010
0.74
0.26
0.17
0.19
0.19
0.20
0.19
0.25
0.20
0.27
Industrial property protection indicators are significant tools for measuring innovative processes. In
2010, the number of domestic inventions registered at the Polish Patent Office amounted to 3,203 and
increased by 10.4% compared to the previous year. Furthermore, the number of patents granted is
growing (1,385). In addition, 879 utility model applications were submitted (an increase of 47%
compared to 2005) and 484 protection rights were granted.120
13.5.2. Institutional environment of Polish enterprises121
The level of innovation of the economy is highly influenced by the institutional environment supporting
innovative activity of enterprises, which include various types of institutions, such as training and
counselling centres, technology transfer centres technology/business incubators, loan funds, technology
parks, etc. Innovation and entrepreneurship centres specialise in the following areas of
entrepreneurship and innovation processes:
− Dissemination of knowledge and skills through counselling and training (training and
consultancy centres), transfer and commercialisation of new technologies (technology transfer
centres);
− Transfer and commercialisation of new technologies (technology transfer centres);
120Central
Statistical Office, Concise Statistical Yearbook of Poland 2011, p. 300.
No update for the 2011 data The Innovation and Entrepreneurship Centre in Poland has not drafted a report which would
include changes for 2011 – this year a report which describes the period between 1st half of 20101H10 and 2nd quarter of
20122Q12 will be drafted.
121
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MINISTRY OF ECONOMY
− Financial assistance in the form of non-bank loan funds and loan guarantees offered to
business makers and young companies with no credit history (e.g. seed and start up);
− Advisory, technical and infrastructure assistance to newly established enterprises in business
incubators and technology centres;
− Creating clusters of firms (clusters) by combining a particular developed area of business
services and various forms of assistance to companies in technology parks, business areas,
industrial parks.
According to the data of the Polish Business and Innovation Centres Association (PBICA - SOOIPP),
the research conducted in mid-2010 showed that the estimated number of active innovation and
business centres in Poland is 735 (increase of 18 entities over the last year), including:
− 24 technology parks and 21 parks initiatives;
− 20 incubators (increase of 3 entities per year);
− 62 pre-incubators or university business incubators (increase of 11 units per year);
− 45 business incubators;
− 90 technology transfer centres;
− 12 seed capital funds (increase of 3 entities per year);
− 8 business angels networks;
− 82 local and regional loan funds;
− 54 credit guarantee funds;
− 317 training, consulting and information centres.
In the last decade or so, the number of innovation and business centres in Poland has been increasing
dynamically. Traditionally, training and counselling centres prevail, with an almost 45% share of all
active entities. This type of centres is the easiest to launch at relatively low cost. At the same time, a
wide range of capabilities to provide consultancy services, training and information gives considerable
organisational freedom. It should be noted, however, that in the case of institutions supporting
innovation activity, there is a structural gap between Poland and the EU and other highly developed
countries. There is a lack of entities supporting innovative projects that are in the post-R&D work stage
but before the implementation phase.
Chart 63 Innovation and business centres in Poland in the years 1991 and 2000-2010
735
2008
2009
2010
507
710
2007
600
689
717
667
2006
800
542
446
400
327
365
263
200
43
2005
2004
2003
2002
2001
2000
1991
0
Source: Polish Business and Innovation Centres Association, Krzysztof B. Matusiak, Business and Innovation Centres in
Poland, PBICA Report – 2010, Łódź/Warszawa 2010.
228
13.6. Development of enterprises
13.6.1. Economic regulations
Regulatory environment remains one of the key factors hampering the entrepreneurship growth in
Poland. Survey respondents name too complicated and incomprehensible law as the barrier for setting
up and running business activity. If one manages to wade through formalities, it often turns out that the
law imposes overburdening obligations on entrepreneurs, causing unjustifiable costs on their part –
such are entrepreneurs’ common experiences. By nature, enterprises are not prepared for regulatory
risks, therefore they perceive frequent legal changes as actions aimed against them. Therefore,
legislative initiatives should respond to their expectations, while transparency and unity of regulations
should ensure there are no doubts as to interpretation of the law so that enterprises could operate within
clear and understandable norms.
The quality of regulatory environment constitutes one of the basic dimensions and indicators of the
functioning of a modern state applying the rule of law. A measurable indicator of quality is the correlation
between costs of regulations and efficiency of GDP generation by the society.
Driven by the need to stabilise the law and improve regulations in areas which demand it, the draft
“Better Regulation Programme for 2012–2015” was prepared. The programme is the Polish equivalent
of the Better/Smart Regulation initiative implemented in the EU law by the European Commission and at
the national level by all EU Member States. The “Better Regulation Programme for 2012–2015” is a
continuation of government programmes implemented by the Ministry of Economy aimed at improving
the quality of new and present laws, including the “Regulatory Reform Programme for 2006–2008” and
“‘Better Law’ – Regulatory Reform Programme for 2010–2011”.
Box 31 Better Regulation Programme for 2012–2015
The Programme aims to comprehensibly amend the existing body of law and to ensure that newly created
provisions are of the highest quality. This will be achieved by carrying out the main objective, which is ensuring
systemic and organisational solutions necessary to draft and assess legal provisions based on analytical
evidence. Regulations should be aimed at addressing the actual social and economic issues, which involves
lowering the costs of conducting business, and should contribute to increasing the competitiveness of Polish
economy. When successfully implemented, they also positively influence the effectiveness of administration. The
main objective will be achieved by carrying out three specific ones, which are:
1. Transparent drafting of law which effectively addresses the real issues by:
− Improving the system of lawmaking;
− Developing the impact assessment tool;
− Improving the effectiveness of EU law implementation;
2. Improving the existing legal environment by:
− Reducing barriers for entrepreneurship development;
3. Improving communication with stakeholders by:
− Streamlining the process of public consultation;
− Easier access to legal provisions and case law.
The Programme sets directions for actions and introduces measures which need to be taken in order to ensure
high quality of regulations during the whose cycle of policymaking, starting with problem analysis and drafting the
provisions of a legal act and finishing with its assessment and monitoring. These tools are to create the so-called
smart regulations, in the case of which the opinion of relevant stakeholders is of key importance. Smart
regulations focus more on assessing the functioning and effectiveness of already existing legal acts122.
Communication from the Commission to the European Parliament, the Council, the European Economic and Social
Committee and the Committee of the Regions, Smart regulation in the European Union (COM/2010/0543).
122
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MINISTRY OF ECONOMY
Solutions included in the 2012–2015 Programme have been partly inspired by documents drafted by the
OECD: Administrative Simplification in Poland, Making Policies Perform123 and Report on Regulatory
Management Capacities in Poland124, which on many occasions constitute an implementation of the
OECD recommendations. The programme is also compliant with OECD guidelines on quality and
efficiency of regulations125. One of these guidelines says that governments should adopt wide political
reforms of regulations which set clear objectives and framework for their implementation and should
oblige themselves to carry them out.
The better regulation initiative is founded on the premise that legislative and non-legislative solutions
should achieve the maximum of economic, environmental and social objectives at a minimum burden on
businesses and the society. Regulatory action is justified in cases when the adoption of a legal act
allows the prevention of market imperfections, the least costly regulation form is selected and net
benefits exceed costs. In this context, a proper structure of the regulatory policy and an efficient use of
programme and analytical instruments within its framework, such as Regulatory Impact Assessment
(RIA) taking into account the presentation of forecasted effects of action taken, is of key significance.
A properly functioning RIA system allows the identification of most important opportunities and risks
resulting from a new regulation. RIA performed at an adequately early stage supports the legislative
decision-making process and prevents the introduction of costly regulations. In 2011, actions aimed at
streamlining the process were launched. The Regulatory Reform webpage opened an RIA electronic
platform, which offers examples of ‘good’ RIAs and legislative bills as well as analytical tools useful in
preparing regulatory framework analyses and training materials. Creating better law also means that
one has to analyse effects of actions carried out so far and to draw conclusions from them. A good
example of such analysis comes from the Ministry of the Economy, which continues to analyse the
impact of legal acts which they drafted and then implemented (ex post RIA).
In order to draft high quality law, one needs to gather extensive information on a given issue and then fit
in some optimal solutions. In both cases it is necessary to use the know-how and experience of entities
whom a given regulation concerns directly, i.e. it is necessary to conduct properly directed public
consultations. In order to streamline the currently used consultation system, in 2011 the project "on-line
consultations" was continued. Its aim is to standardize the public consultation process, increase its
transparency and strengthen the role of social partners in the lawmaking process. The goal is to create
equal rules enabling all entrepreneurs to actively submit their opinions about legal acts by:
− creating an electronic system which effectively supports procedures regulating submission of
opinion on legal acts,
− creating a system which supports the creation of RIA.
In the long-term perspective, the system which is presently being design will offer a historic data on
different versions of a given legal act, along with propositions and remarks by entrepreneurs. It will also
create a broader picture showing how a given regulation has changed over the years. This pilot project
will be implemented in the Ministry of Economy. After thoroughly checking the system, it is planned to
develop it further and to implement it in other central institutions.
Besides making sure that the newly drafted law is of good quality, the analysis of effects created by
already applicable legal provisions and their optimisation is also important. Entrepreneurs complain
Administrative Simplification in Poland, Making Policies Perform, OECD, 2011.
Report on Regulatory Management Capacities in Poland, Support for Improvement in Governance and Management
(SIGMA), OECD, EU, 2006.
125 OECD Guiding Principles for Regulatory Quality and Performance, 2005; Draft OECD Recommendation on Regulatory
Policy and Governance, 2011.
123
124
230
about over-restrictive law which makes it harder to conduct business. They are angered by the number
of documents they have to fill in when registering a business, by the prolonged time which courts need
to issue a judgment and by too much reporting obligations related to their business and to their
employees. Solution to these issues is reflected in the proposed reduction of administrative burdens and
in simplification of applicable provisions.
Administrative burdens constitute a part of administrative costs which stem from the entrepreneurs’ legal
obligation to comply with their information obligations, which they would not have to fulfil if it were not for
the legal requirement. Poland aims to reduce the burdens in the selected 6 key legal areas by 25%
(these areas are environment, planning, land management, commercial law, hallmarking law, labour law
and tourism). This is the so-called first stage of reduction, in which only the most important legal acts
regulating a branch of law (those generating the largest burdens) have been assessed in terms of
administrative burdens.
Legislative actions taken by the Minister of Economy in the intervening year were focused on simplifying
commercial law. They were primarily intended to improve the situation of enterprises and reduce
administrative barriers. Since 1 July 2011, economic activity can be registered on-line by anyone,
without visiting authority offices, filling in forms and paying high fees. The law was also simplified by two
deregulation acts: the Act of 23 March 2011 on lifting administrative barriers for citizens and
entrepreneurs (Dz. U. No. 106, item 622) – the 1st Deregulation Act, which entered into force on 1 July
2011, and the Act of 16 September 2011 on reducing certain obligations of citizens and entrepreneurs
(Dz. U. No. 232, item 1378) – the 2nd Deregulation Act.
The first act was drafted after performing a thorough review of Polish commercial law. This branch of
law regulates contracts between a citizen and a given administration office e.g. by introducing a
possibility to make personal statements in place of the obligation to submit certificates or by offering
citizens a possibility to submit copies of documents. Moreover, the act includes provisions which enable
natural persons conducting a business to change their status and become a company. Also, cost of
registering a company in the Register of Entrepreneurs were reduced by half. Amendments of certain
tax laws made it possible to introduce the institution of consumer leasing. It is estimated that solutions
included in the I deregulatory act may reduce expenditure of citizens and companies by approx. PLN 5
billion annually.
On the other hand, the Act of 16 September 2011 on reducing obligations of certain citizens and
entrepreneurs (Dz. U. No. 232, item 1378). - the 2nd Deregulation Act, regulates such issues as better
access to general tax interpretations, extending the deadline for using the outstanding paid leave by
employees, shortening the period for storing copies of income statements and personal social insurance
statements (from 10 to 5 years), shortening the aging of receivables due for Social Insurance Company
and Farmer's Social Security Fund (from 10 to 5 years) and lifting the entrepreneur’s obligation to
publish reports in Monitor Polski B [the Official Gazette of the Republic of Poland] and thus lowering
costs related to the publication (the amendment shall enter into force on 1 January 2013). Fewer
reporting obligations for entrepreneurs and improved conditions for conducting business are one of the
most important simplifications for companies, which entered into force on 1 January 2012. It is
estimated that solutions adopted in the 2nd Deregulation Act may lower the expenditure of citizens and
companies by approx. PLN 3 billion per year.
These actions, whose aim is to make it easier to conduct business in Poland, are continued in 2012. Bill
guidelines on standardization of certain form templates used in administrative proceedings have been
drafted. The proposed solutions make it possible for citizens and entrepreneurs to complete certain
administrative procedures on-line, which saves their time and streamlines the whole process.
231
MINISTRY OF ECONOMY
Introducing universal template forms should make it easier for entrepreneurs or citizens to obtain a
decision or a permit and should streamline the work of civil servants. The bill will enable on-line
completion of approx. 80 administrative procedures which are listed in 25 acts. Standardisation will be
following two tracks:
− Implementation by a regulation stipulating a template of an official form which will be generally
applicable (legally binding templates of official forms), or
− Implementing a provision obliging a given body to draft an e-template of an official form which will
be used in the procedure (e-templates of official forms).
Legally binding templates will be introduced only in the case of complicated procedures or when an
application requires to enter a large amount of data. They will be also used when a decision issued
under procedure used by different bodies (government administration at a local level or local
government administration) or when it is required to attach to an application a lot of appendices. On the
other hand, universal e-templates of official forms will be used in the case of less complicated forms
which require entering less data and which are usually submitted without any appendices. Templates of
official forms will be stored in the central depository of electronic forms on the ePUAP platform. It will be
possible to use both paper and electronic forms.
Draft guidelines of the draft act on reducing certain administrative burdens in economy, the so-called 3rd
Deregulation Act, constitutes yet another important element of commercial law simplification. The draft
introduces changes related to tax law, social insurance, labour law and provisions regulating the esignature. It also simplifies the system of making payments and provisions regulating access to public
information. The project proposes to further curb information obligations, which will visibly improve the
quality of contacts between entrepreneurs and administration bodies. It also serves as a sign of the
state’s trust in entrepreneurs. Limiting burdens in this area will lower the costs of completing
administrative procedures and thus will lower the costs of conducting business in Poland. Draft
amendments in the 3rd Deregulation Act concern the following areas:
− improving financial liquidity of entrepreneurs and supporting investments,
− lowering costs of establishing and running a business,
− limiting burdens for importers and exporters,
− improving financing conditions for investments made by entrepreneurs,
− limiting the number of information obligations,
− corporate social responsibility,
− transparency of state institutions actions,
− labour law and social security institutions.
At the same time, work on amending the Act on payment deadlines in commercial transactions is
ongoing, which results in particular from the obligation to implement into the Polish legal system the
provisions of Directive 2011/7/EU of the European Parliament and of the Council of 16 February 2011
on combating late payment in commercial transactions. Work is also ongoing on the document entitled
Directions for the prevention of company bankruptcy and a second chance policy, which
comprehensively addresses issues related to managing an enterprise in a crisis situation and enterprise
bankruptcy issues. Also, the document introduces the so-called second chance policy as an
indispensable element of economic policy, and entrepreneurship policy in particular.
232
Box 32 Amendment of the Act on payment deadlines in commercial transactions
Draft guidelines for the Act on payment deadlines in commercial transactions introduce a solution pursuant to
which a creditor who is a party in a transaction between undertakings shall receive interest for late payment
should the deadline for payment stipulated in the contract exceed 60 days and should such deadline be grossly
unfair to the creditor. In the case of contracts where the debtor is a public authority, legislators propose a
regulation pursuant to which period of payment for delivered goods or provided services cannot, as a general
rule, exceed 30 calendar days, unless setting a longer period shall be objectively justified by in the light of the
particular nature or features of the contract. This period of payment shall not exceed 60 calendar days. Setting a
longer period of payment in the contract shall be treated as late payment and the creditor shall be eligible for
interest for late payment in the amount stipulated in the act.
The amended act will also introduce a new instrument whose aim is to reimburse the creditor for the costs
incurred when executing the due amount from the debtor. Pursuant to the provisions of Directive 2011/7/EU
legislator proposes to introduce a fixed sum of compensation which, when expressed in PLN, is an equivalent of
EUR 40 and which shall cover the costs of recovery incurred by the creditor. Entitlement to charge compensation
shall become effective when interest for late payment becomes payable and do not require a creditor to send a
separate payment request. In the case when recovery costs exceed the fixed sum of compensation, the creditor
shall be eligible reimbursement of all expenditures which he incurred when trying to recover costs in court.
13.6.2. Barriers for the development of entrepreneurship
A survey of entrepreneurs can be a valuable source of information about barriers they meet when
running a business, therefore regular research is carried out among SMEs. The last survey conducted
by the Ministry of Economy126 indicates that in 2010 the evaluation of the legal and institutional
environment the enterprises operate in did not significantly change compared to the previous years.
The evaluation of tax law regulations by enterprises remains negative – nearly half of the respondents
evaluated it as bad or very bad. In addition, over several years the share of negative opinions has been
rising slowly but steadily. The survey shows that entrepreneurs aged 40 and above are more critical in
their evaluation of tax law – half of them evaluated it as bad or very bad, while positive opinions
accounted for 7%. Among entrepreneurs aged 60 and above 46% of opinions were negative, while the
share of positive opinions was similar to the one reached in the case of young entrepreneurs.
Nearly half of the respondents saw labour law regulations as average, 30% – as negative (every fifth
respondent saw them as bad and every tenth as very bad), whereas 16% perceived them as positive.
As for the evaluation of economic judicature regulations, compared to the previous half of the year the
share of negative opinions slightly dropped, whereas the share of opinions evaluating the regulations as
average rose.
Compared to the previous half of the year the share of negative opinions on regulations and procedures
in the scope of business activity supervision increased (from 25% to 30%). The share of neutral
opinions remained the same as in the previous survey, which means that the number of positive
opinions decreased.
However, in the 2nd half of 2011 the share of negative opinions on the quality of client accounts
regulations and procedures dropped.
126
Trends in the development of SMEs according to entrepreneurs in 2H10 (No. 1/2011), Ministry of Economy, April 2011.
233
MINISTRY OF ECONOMY
Chart 64 Entrepreneurs’ opinions on business regulation
Very bad
Bad
Average
Good
Perfect
100%
Very bad
Bad
Average
Good
Perfect
100%
75%
tax law
75%
Bad
Average
Good
100%
75%
75%
Bad
Perfect
.2
20
11
20
10
.2
20
09
.2
20
08
.2
Very bad
Good
Perfect
100%
50%
20
07
20
06
20
08
.2
Very bad
.2
0%
20
11
.2
0%
20
10
.2
25%
20
09
.2
25%
20
07
.2
50%
20
06
.2
50%
.2
labor law
Average
Operations of judiciary
Inspections over economic activity
50%
25%
25%
Very bad
Bad
Average
Good
20
11
.2
20
10
.2
20
09
.2
20
08
.2
20
06
.2
20
07
.2
0%
20
10
.2
20
09
.2
20
08
.2
20
07
.2
20
06
.2
0%
deterioration
Perfect
no change
Assesment if changes in 2nd
100%
improvement
half of 2011 as regards
economic law in general
75%
starting and closing a business
Settlements with contractors
50%
settlements with contractors
inspection over economic activity
25%
operations of judiciary
labour law
20
11
.2
20
10
.2
20
09
.2
20
08
.2
tax law
20
07
.2
20
06
.2
0%
0%
Source: Poll survey of the SME sector. Ministry of Economy. April 2012.
234
25%
50%
75% 100%
Entrepreneurs also assessed changes that in their opinion took place in the regulations in the areas
mentioned above in the 2nd quarter of 2011. The majority of respondents do not notice any major
changes, and if they do, they often consider them to be negative (this is particularly the case with tax
law and labour law). Only in the case of regulations for setting up and closing down companies the
number of people who indicated that these regulations improved was higher than the number of people
who claimed that they worsened. Nearly 30% of surveyed entrepreneurs assessed the regulations for
setting up and closing down companies as positive (good or very good). Every fourth assessed them as
negative, whereas 46% as average. Among entrepreneurs aged below 40, 38% of the respondents
assessed the regulations for setting up and closing down companies as good or very good, and every
fifth assessed them as negative. Entrepreneurs aged 60 and above evaluated these regulations slightly
more negatively – positive opinions accounted for less than 20%, while negative opinions – for 26%.
According to respondents, the most significant barrier to running an economic activity is the amount of
taxes and other payments provided for by law. In the 2nd half of 2011 the share of indications of this
problem amounted to 35% and again was higher than in the previous half of the year. Every fifth
respondent indicated low turnover, while 8% of companies stressed the complexity of legal regulations.
There remains a high share of opinions that the competition of other enterprises constitutes the main
barrier to running a business – the competition of large companies was indicated by 10% of
respondents, and a similar percentage pointed to the competition of small companies. The bureaucracy
was indicated by 4% of respondents.
Only one in a hundred respondents indicated adequate qualifications of workforce as the main barrier.
This share has been steadily decreasing in the last few polls and currently it reached the lowest level in
the history of the survey. It is difficult to identify an explicit reason behind this situation, which for
example may be the result of improving adaptation of labour market to economic needs, or of the fact
that not many entrepreneurs look for workers (and consequently relatively seldom point to this barrier).
The situation may also be explained by the fact that entrepreneurs looking for workers have more and
more candidates to choose from. Only a small percentage of respondents also indicated the cost of
workforce as a factor that influences their running an economic activity.
Chart 65 The most serious barriers to development of enterprises in the second half of 2011
Tax rates
Insufficient turnover
Competition from small and medium-sized companies
Competition from large companies
Long payment-awaiting time
Complex legal provisions
Bureaucracy
Enterprises:
Conditions related to company premises
mediumsized
small
Labour costs
Difficult to say
Inadequate skills of workers
micro
Other
Coruption
0%
10%
Source: Poll survey of the SME sector. Ministry of Economy. April 2012.
235
20%
30%
40%
MINISTRY OF ECONOMY
Another source of information about barriers faced by entrepreneurs when running an economic activity
is the quarterly survey concerning the economic situation in enterprises carried out by the National Bank
of Poland. The recent survey (carried out in 1st quarter of 2012) shows that (as in the previous two
quarters) in the period concerned low demand remained the main barrier for companies to running an
economic activity. Entrepreneurs identified as a barriers also the increase in prices of raw materials and
processed materials and the fluctuations of exchange rates. However, one fourth of entrepreneurs
stated that they do not come across any problems in their economic activity.
High and
growing
competition
Unclear
regulations,
changes to
the law
Payment
delays,
liquidity
problems
Exchange
rates,
including
fluctuations
None
Low demand
Increase in
proces of
materials and
raw materials
Table 91 Barriers to development
maximum and
6.2 / 34.7
4.3 / 30.0
2.7 / 17.5
8.3 / 26.8
4.9 / 21.2
4.2 / 14.0
5.4 / 21.2
minimum values:
I q 2010
23.5
19.3
7.6
13.3
9.2
4.2
9.0
II q 2010
34.7
13.5
7.6
10.4
6.1
4.3
6.8
III q 2010
30.6
13.5
9.2
10.1
8.8
7.9
6.1
IV q 2010
25.5
12.9
8.7
9.4
7.0
7.0
7.0
I q 2011
25.5
12.7
15.0
10.4
8.4
6.8
6.0
II q 2011
23.3
11.3
13.9
8.3
8.3
5.6
6.0
III q 2011
29.0
14.2
11.2
9.8
6.8
6.3
6.8
IV q 2011
22.3
14.6
12.5
13.3
7.8
6.5
5.7
I q 2012
26.8
12.9
12.4
11.8
8.8
6.9
6.7
Source: Information on the condition of the enterprise sector, including the economic climate Q 1 2011 and forecasts for Q 2
2012, National Bank of Poland. April 2012.
Chart 66 Indicator of expectations – conditions for conducting business
expectations for 2011
27.7
results in 2011
12.0
expectations for 2012
43.6
45.0
26.3
0%
improvement
28.7
20%
43.0
43.2
40%
no changes
30.5
60%
80%
100%
deterioration
%
Source: Business climate in Poland and in Europe for 2012. European Economic Survey 2012. Results on research, Polish
Chamber of Commerce, Warsaw, November 2011.
236
In turn, the survey carried out by the Association of European Chambers of Commerce and Industry,
EUROCHAMBRES127, shows that while in 2011 the share of Polish entrepreneurs anticipating
improvement of the conditions of running an economic activity was more or less equal to the share of
those who expected that the condition would worsen, in 2012 there were more pessimists than
optimists. The indicator of business climate measuring the expectations of entrepreneurs in relation to
the conditions of running a business was around the EU average.
13.6.3. Entrepreneurship support instruments
13.6.3.1.
Instruments supporting the innovation of enterprises
The largest catalogue of innovative economy support instruments is included in the Operational
Programme Innovative Economy, 2007-2013 (OP IE), the main objective of which is the development
of Polish economy on the basis of innovative enterprises. In the knowledge-based economy, innovation
is one of the factors creating competitive advantage, whereas designing new products and technologies
is necessary to compete on the global market. Above all, OP IE supports investments leading to the
creation of new or considerably improved products. The support is granted mostly to investments
dealing with product and process innovations.
Under OP IE, support instruments have been devised for, among others, entrepreneurs, including
SMEs, institutions supporting the establishment of innovative enterprises and business environment
institutions and networks.
The total allocation of the Operational Programme is EUR 9.71 billion (ca. PLN 38.1 billion)128, out of
which EUR 8.25 billion (PLN 32.4 billion) comes from the European Regional Development Fund. The
total allocation for actions supervised by the Ministry of Economy amounts to ca. EUR 4.4 billion (PLN
17.5 billion), i.e. 45% of the total Programme allocation, including for particular priority axes:
− III priority Capital for innovation - allocation of EUR 340 million,
− IV priority Investments in innovative undertakings – allocation of EUR 3,430 million,
− V priority Diffusion of innovation – allocation of EUR 399 million,
− VI priority The Polish economy on the international market – allocation of EUR 273 million.
Since 2007 until June 2012, 10.9 thousand projects amounting to PLN 34.1 billion were approved under
OP IE, which accounted for 76.27% of the allocations under European Regional Development Fund
(ERDF).
Entrepreneurs may also obtain financial support under Human Capital Operational Programme. The aim
of one of the measures is to ensure to the social economy entities an access to external sources of
financing necessary for them to develop their activities, by creating and piloting a financing programme
based on redeemable financial instruments. Under this measure the National Economy Bank
implements, via financial intermediaries, a project, under which the funds will be transferred to
interested social economy entities running an economic activity (including micro-enterprises) and
meeting relevant formal and quality criteria. It is assumed that under the measure 250 social economy
entities will receive financial support in the form of a preferential loan not exceeding PLN 100 thousand.
The funds allocated for the implementation of the project will amount to PLN 30 million. The repayment
Survey of enterprises conducted by the National Economic Chamber is a part of the European Enterprise Panel.
Entrepreneurs in all countries are asked the same questions, which makes it possible to compare the conditions for running a
business in Poland and in other European states. The survey described in the text was conducted towards the end of 2011.
128 According to EBC rate of the last-but-one working day of April 2010, i.e. 3.9153 PLN/EUR.
127
237
MINISTRY OF ECONOMY
period will be of a maximum 60 months. The entities will also receive an advisory support. The
programme will be implemented throughout the State, which, for the purposes of the programme, will be
divided into five macro-regions. For each of the regions a financial intermediary will be chosen. The
launch of the instrument is planned to take place in 2nd half of 2012.
Table 92 Allocation of funds under OPIE by priority (8 June 2012)
Priority
Allocation on
priori ty , (PLN
million)
Number of
signed
contracts
The amount of
funding requested in
the framework of
signed contracts (PLN
million)
6,680.3
5,700.3
1,623.3
16,168.4
1,951.8
1,801.6
1,084
124
264
1,234
206
3,237
5,137.4
5,381.7
1,328.9
10,479.8
1,171.7
1,170.4
4,127.4
28
3,617.3
5,685.4
950.8
3,330
140
2,378.1
523.4
Priority 1 Research and development of new
technologies
Priority 2 Infrastructure of R&D
Priority 3 Funds for innovation
Priority 4 Investments on innovative activities
Priority 5 Difusion of innovation
Priority 6 Polish economy on international market
Priority 7 Information society - establishment of
electronic administration
Priority 8 Information society - increasing the
innovativeness of the economy
Priority 9 Technical assistance
The promotion of and support for the initiatives and solutions aimed at creating new jobs and building
creative attitudes for the development of entrepreneurship and self-employment, implemented under OP
HC, may serve as an auxiliary activity. It is addressed to companies and institutions that have an idea
how to support entrepreneurship in their region. Those who wish to receive aid for setting up and
running a company may indirectly apply for co-financing under the above measure. The support
consists inter alia in granting financial resources for the development of entrepreneurship up to PLN 40
thousand, in bridging support, as well as workshop and advice in the scope of effective use of grants (up
to 100% of eligible costs of the project).
Innovation support instruments at regional level depend on the policy of a region. The policies are
implemented under Regional Innovation Strategies. By the end of May 2012 in 16 ROPs more than 14.9
thousand agreements for a total of PLN 12.3 billion for research, development and innovation, as well
as investments in the area of entrepreneurship were concluded.
Programmes supported by structural funds are not the only actions to contribute to the development of
innovative enterprises. In 2011 the Polish Agency for Enterprise Development (PARP) continued the
implementation of state-financed programmes.
The aim of the programme "Bon na innowacje" [A coupon for innovation] is to initiate contacts
between entrepreneurs and science. It can be used by micro and small enterprises which have not used
services of any scientific unit as regards research and development in the year of submitting an
application and for three years before that year. The enterprise can be granted support in the maximum
amount of PLN 15 thousand. The funds in the amount of PLN 9 million were planned for the programme
in 2011. In the period for submitting applications 972 applications for a total of PLN 14.6 million were
submitted. 629 applications for about PLN 9.4 million in total received positive opinions. Support was
granted, i.e. bilateral agreements were signed, with 584 beneficiaries who received ca. PLN 8.7 million.
Ultimately, 543 payments for beneficiaries for a total of PLN 8.1 million were made. Since the beginning
of the implementation of this programme until the end of 2011, the support was granted to 1,643 entities
238
for a total of ca. PLN 24.4 million. “Bon na innowacje” programme has been continued in 2012. The
funds in the amount of PLN 8 million were planned for its implementation.
In 2011 a new instrument for entrepreneurs was initiated, namely the Grant Support programme, which
was introduced by Ordinance of the Minister of Economy of 14 April 2011 amending the Ordinance on
the granting of financial support not related to operational programmes by the Polish Agency for
Enterprise Development (Dz.U. No 86, item 472). The programme is to encourage enterprises to
participate in international innovation programmes and to cooperate with the scientific milieu. An
enterprise which submitted a project application (as a coordinator or a partner) in response to a
competition announced as part of the international innovation programme and which subsequently
received its positive formal evaluation may apply for support to cover expenditure related to the
preparation and submission of the abovementioned application. The amount of support for the project
coordinator is PLN 75 thousand, while for a project partner – PLN 35 thousand. In 2011 the support was
received by 10 enterprises for a total of ca. PLN 317 thousand. Funds of PLN 2 million were earmarked
for the programme in 2012.
In August 2010 the New Technologies Knowledge Base was made available to entrepreneurs looking
for domestic innovative solutions. The purpose of the base is to collect offers in the area of technology,
devices and specialised research services developed by research institutes and by enterprises which
were granted the status of research and development centres by the Minister of Economy, and make
such offers available to enterprises. The base aims at increasing the transfer of new solutions to the
economic practice. Entrepreneurs who cannot find an offer meeting their expectations can enter into the
Base queries about sought technologies. At the end of 2011, over 40 profiles of institutes/research and
development centres and about 100 technological offers were featured in the database129.
In 2011 entrepreneurs could also use Enterprise Europe Network (EEN) services, partly financed under
Community Competitiveness and Innovation Framework Programme. EEN provides support services for
enterprises by proxy of ca. 600 contact points located in 48 countries (EU27, candidate countries:
Turkey, former Yugoslav Republic of Macedonia, EEA countries: Norway, Iceland, other countries:
Armenia, Israel, Switzerland, Bosnia and Herzegovina, Chile, China, Croatia, Egypt, Japan, Mexico,
Montenegro, Russia, Serbia, South Korea, Syria, Tunisia, US). EEN provides the following services to
micro, small and medium-sized enterprises:
− Information and consultancy actions in the field of European Union law and policies, running
business activity abroad, access to financing sources, technology transfer and participation in EU
framework programmes,
− assistance in finding business cooperation partners and technology transfer,
− organising trips of Polish companies to cooperation events (fairs and missions) co-financed by the
European Commission, aimed at stimulating cooperation between regions and countries,
− granting answers to online questions posed by entrepreneurs from the European Union concerning
formal and legal conditions of business activity in Poland and possibility to cooperate with Polish
enterprises and institutions,
− organisation of training courses, workshops and seminars,
− technology transfer services, including technological audits, exchange of technological offers,
assistance in finding technological partners and associating entrepreneurs and scientific units,
− supporting the participation of SMEs in the 7th framework programme for research and technological
development
30 EEN centres, grouped in four consortia, operate in Poland.
129
New technologies knowledge base available at www.innowacje.gov.pl.
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MINISTRY OF ECONOMY
In 2011 the European Commission revised the indicators illustrating the EEN activities (some of the
indicators were abandoned, while others were aggregated). In 2011 nearly 1.5 million people benefited
from promotion activities of Polish EEN centres, nearly 9.5 thousand people attended local and regional
events, nearly 390 beneficiaries made use of technological audits and business analysis services, 144
partnership agreements (business agreements, technology transfer agreements and agreements
concerning applications for FP7) were signed, about 3.7 thousand replies were sent to the queries from
SMEs, more than 1 thousand people participated in broker events and foreign missions, 1,135 national
partnership offers were generated, more than 1,800 foreign queries about national partnership offers
were received and nearly 2 thousand national queries about foreign partnership offers were submitted.
Information on EEN operation in Poland can be found on www.een.org.pl.
Tax instruments included in the Act on certain forms of supporting innovation activities are a
great incentive for enterprises to get involved in innovation activities.
25 research and development centres have been established until May 2012. A survey carried out
among 30 largest research-conducting enterprises in Poland (without RDC status) indicates that most
respondents claim that RDC status brings about tax and marketing benefits (prestige, development of
research department, easier access to assistance for research and development, initiation of
cooperation with universities and companies) and intend to apply for a RDC status. At the same time
though, half of respondents indicated too slight tax incentives for RDCs.
Box 33 Research and Development Centre Status
Research and Development Centre Status is a mechanism directed at the development of private research and
development sector and increased outlays of private research enterprises on research and development, as well
as increasing the supply of research and development services on the market. RDC status is granted to an
entrepreneur whose annual revenue from the sale of goods, products and financial operations amounts to at least
EUR 120 thousand, out of which at least 20% must derive from the sale of research and development services
created by the entrepreneur or industrial property law. An entrepreneur who has been granted a research and
development centre status is exempted from property taxes (including agricultural and forest taxes) as regards
property used for research and development activities and can open an innovation fund supplied by a monthly
contribution amounting to no more than 20% of an income. Funds that contribute to innovation funds constitute
tax deductible expenses for RDC and their disbursement must take place until the end of the fiscal year after the
year where a deduction was made. This mechanism allows to decrease a tax base on a one-off basis by fixed
assets costs and running costs before actually incurring them. Fixed assets financed from the innovation fund
cannot be amortised. Running costs financed from the innovation fund do not qualify into tax deductible
expenses.
The second tax relief, introduced by the Act on certain forms of supporting innovation activities is a tax
relief for the purchase of new technologies applicable to personal income tax and corporate income tax.
Each entrepreneur can make use of this relief. The use of this relief is conditioned by the usefulness of
a new technology to a statutory activity of a taxpayer and the reception of the opinion on the novelty of
the technology from the scientific unit (university, association, research and development centre). A
given technology is recognised as new if it constitutes a technological knowledge in the form of
intangible and legal assets or has been purchased on the basis of a contract that has not been used
Worldwide for more than 5 years. The 50% of the new technology price can be deduced from the tax
base. At the same time, the value of new technology is fully subject to depreciation.
In 2006, when the relief (in CIT and PIT) entered into force, only 12 entrepreneurs made use of it,
whereas in 2007 as many as 136, in 2008 – 37, in 2009 – 40 beneficiaries, and in 2010 – 48
beneficiaries.130 In the years 2006-2010 enterprises deduced the amount of PLN 67 million from the tax
130
Data concerning the year 2011 are unavailable on the report publication date.
240
base, out of which the budget effect (unpaid tax) amounted to PLN 14 million. A survey based on the
sample of 100 entrepreneurs operating in sectors where relief was most frequently used indicated that
43% of entrepreneurs were unaware of the relief’s existence. The other reason for a low use of this tax
mechanism seems to be low absorption of new technologies by Polish enterprises.
In addition, there is the technological credit (its financing was shifted to 4.3 measure of OP IE) in place,
pursuant to the Act on certain forms of…. The technological credit is an instrument consisting in banks
granting a commercial credit to entrepreneur for the implementation of a technological innovation and in
a partial repayment of this credit by the National Economy Bank from public funds. The amount of
repayment from public funds is called technological premium. A technological investment consist in
purchasing and implementing a new technology in the form of industrial property rights or non-patented
technological knowledge, or in implementing his/her own new technology by an entrepreneur. The
technological premium paid does not exceed PLN 4 million and it does not exceed the value of the sale
of products resulting from the implementation of the technological investment documented by the
borrower with invoices paid.
Box 34 Amendment of the Act on certain forms of supporting innovation activities
In April 2011 the process of amending the Act in order to simplify the rules for granting and repaying a
technological credit ended. The changes consist inter alia in:
− allowing for granting a credit also for a technology in the form of non-patented technological knowledge,
− calculating the repayment of the credit (technological premium) from the total of eligible expenditure,
− paying the technological premium immediately after the implementation of the technological investment
(without the need to submit sales invoices).
The amendment of the Act resulted in a significant growth of the interest of entrepreneurs in the support
instrument concerned. 621 entrepreneurs responded to the last call of 7 December 2011, applying for a total of
PLN 1.6 billion, which accounted for 641% of allocations for this call. From the beginning of the implementation of
4.3 measure of OP IE until 7 December 2011 990 applications were submitted and 158 technological premium
arrangements were contracted for a total of PLN 365 million. The allocation of funds for 2012 amounts to PLN
470 million and for 2013 – to PLN 51 million. 74.9% of the allocation (PLN 252 million) is yet to be used.
In 2011 the support for Academic Business Incubators was continued. Business incubators operating
in universities aim at developing entrepreneurship among students, activate and enhance professional
qualifications and provide support for young entrepreneurs in setting up own business. The support
could be granted to Academic Business Incubators within the meaning of Article 86 of the Higher
Education Law of 27 July 2005 (Dz.U. of 30 August 2005, No 164, item 1365, as amended), i.e.
academic incubators operating in the form of:
− a university unit operating on the basis of regulations approved by the university senate,
− trading company or foundation operating on the basis of relevant legislative documents.
Applications for financing could be submitted by public and private higher education institutions. The
maximum amount of co-financing was PLN 15 thousand.
In reply to a competition announced in 2011, 14 higher education institutions submitted applications for
support. Contracts were signed with 12 applicants in the total amount of ca. PLN 180 thousand. The
support received was used to equip the incubators in the necessary office and computer equipment, to
extend the offer for beneficiaries and reach a broader range of potential beneficiaries with the offer. The
support for incubators is continued in 2012. PLN 200 thousand are planned to be allocated for this
objective.
241
MINISTRY OF ECONOMY
13.6.3.2. Exports supporting instruments
Exports support takes place on two platforms: in a narrower context, through implementing specific
instruments and in a broader context, through promoting Polish economy in the macro scale. Actions
aimed at supporting exports are implemented as part of operational programmes and are based on
European Funds, as well as through co-financing sectoral promotion projects, costs of obtaining exports
certificates from the state budget and organisation of promotion undertakings, as well as promotional
publications and materials.
As part of Measure 6.1 Passport to Export of the Operational Programme Innovative Economy, 20072013 (OP IE), a support system for micro, small and medium-sized enterprises in which the share of
exports in total sale does not exceed 30% has been devised. Co-financing is granted for the
implementation of projects aimed at increasing the share of exports in total sale, intensifying links with
foreign partners and enhancing awareness of trade and national labels on foreign markets. As part of
refundable activities, among others, participation of beneficiaries in foreign fairs, exhibitions and
missions is provided for. Financing covers two types of projects, namely, preparing and implementing
the exports development plan; however, it is not possible to be granted a subsidy only for a second
project type overlooking the first one. Measure 6.1 budget amounts to EUR 121.84 million. The
institution responsible for the implementation of the Passport to Export is the Polish Agency for
Enterprise Development.
The general goal of the system project of the Minister of Economy, implemented as part of Submeasure
6.2.1 OP IE Support for networks of services for investors and exporters, is to increase the level of
Polish companies’ internationalisation via facilitating access to comprehensive, high-quality and free
information services in the scope that is necessary to plan, organise and execute exports and/or
investments outside Poland. This project also covers activities for increasing the number of foreign
investments in Poland via facilitating access of potential foreign investors to information on the
conditions for setting up business activity in Poland and enterprise development support instruments,
including investment incentives.
The domestic network of fifteen Investors and Exporters Service Centres is responsible for the
implementation of this support component. The network comprises one-stop-shop units operating within
Marshal Offices or other units that Marshal Offices delegate this responsibility to. The result of the
project implementation will be better access to free information services supporting exports and Polish
investments abroad and thus, less scattered information on the foreign markets. Entrepreneurs
benefiting from the information service may count on obtaining help in receiving information on potential
foreign partners, they obtain free access to B2B World database, a database containing statistical and
marketing data on markets/sectors and companies running business activities covering manufacturing
and services Worldwide (Euromonitor International), particularly owing to a close cooperation between
COIE experts and Trade and Investment Promotion Divisions of Embassies and Consulates of the
Republic of Poland (WPHI), which have a broad up-to-date knowledge about the conditions of access to
and functioning of selected foreign markets. The synergy of actions resulting from the close cooperation
between WPHI and COIE, as well as between all the COIE experts will allow for a smooth flow of
information to entrepreneurs interested in developing exports or in investing outside Poland, as well as
for actions for attracting foreign investors to the region.131
Another promotion initiative is a system project entitled "Promotion of Polish economy on international
markets" implemented under Submeasure 6.5.1 OP IE. It is expected that its implementation will
The most recent information about Project 6.2.1 along with address details of individual COIE is available at:
www.coie.gov.pl.
131
242
contribute to the improved image of Polish economy among international partners and will facilitate
access to information about Poland, as well improve the establishment of trade contacts. The process of
creating a positive image of Poland and strengthening the country's position in the international arena
will be developed, among others, via organising sectoral promotion programmes, which are there to
create Polish exports specialties. In September 2010 fifteen branches/product/service groups that will
be covered by the project were listed. They were the following sectors:
− furniture sector,
− jewellery and amber processing sector,
− IT and ITC services,
− production of yachts and recreation boats,
− biotechnical and pharmaceutical industry,
− production of medical equipment and measuring devices,
− window and door frame woodwork sector,
− construction,
− historical monuments protection and conservation sector,
− cosmetics,
− mining machines and equipment,
− clothing, accessories, leather accessories,
− medical tourism,
− defence industry,
− polish food specialties.
Selected concepts of sectoral promotion programmes will form a basis for granting financial support to
entrepreneurs for their participation in promotion events planned in sectoral promotion programmes
(under Submeasure 6.5.2 OP IE). Moreover, financial support for sectoral promotion activities has also
been provided for. This component has been so devised to assure that the effect of promotion activities
undertaken covered all entrepreneurs, including those not taking part in sectoral promotion
programmes. The project provides for the development, under promotion programmes, of promotion
and marketing activities, which will then be used during information and promotion campaign in the
foreign media. The project also provides for supporting promotion activities of entrepreneurs under
general promotion programmes. The idea behind these programmes is to create favourable conditions
for entrepreneurs to promote themselves during the World's key promotional events. Moreover, as part
of these programmes, various actions aimed at improving the image of Poland and Polish economy
abroad will be undertaken.
Sectoral promotion programmes aim at increasing competitiveness of the fifteen Polish economy
sectors through innovative products and services, closer economic cooperation with countries of
destination covered by the programmes, as well as through raising awareness of Polish exports offer
among EU consumers and producers as a result of promotional actions on the markets of these
countries. The actions are in line with EU economic policy covered inter alia in Europe 2020 strategy
and measures aimed at completing the building of the single market in the EU and at increasing the
competitiveness of the EU.
The tasks planned under Submeasures 6.5.1 and 6.5.2 are interconnected and will form a coherent and
large scale action promoting Polish economy aimed at improving the image of Poland and Polish
economy among international partners. The budget for the implementation of Submeasure 6.5.1
amounts to PLN 180.1 million (PLN 21 million are planned for 2012). The budget for the implementation
of Submeasure 6.5.2 amounts to EUR 35.5 million. So far, under Submeasure 6.5.2 10 competitions for
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MINISTRY OF ECONOMY
entrepreneurs for applications for co-financing of the participation in the programmes were announced,
for the total amount of the aid foreseen of PLN 72.9 million.
A currently functioning online exports information database – Polish Export Promotion Portal – is an
important support for entrepreneurs. Presently, the portal contains: economic information on foreign
markets addressed to Polish exporters, as well as on forms of supporting exports in Poland, intra-EU
trading conditions, about Poland for foreign enterprises, as well as macroeconomic reports and studies
of the Ministry of Economy concerning the Polish economic situation and information on offers: profiles
of Polish exporters with their full contact data, exports offers of Polish enterprises, letters of inquiry sent
by foreign companies and information on foreign tenders.
Table 93 Target countries covered by the trade promotion programmes
Sector
1. furniture sector,
2. jewellery and amber
processing sector,
3. IT and ITC services,
4. production of yachts and
recreation boats,
5. biotechnical and
pharmaceutical industry,
6. production of medical
equipment and measuring
devices,
7. window and door frame
woodwork sector,
8. construction,
9. historical monuments
protection and
conservation sector,
10. cosmetics,
11. mining machines and
equipment,
12. clothing, accessories,
leather accessories,
13. medical tourism,
14. defence industry,
15. Polish food specialties
Germany
Russia
Ukraine
Markets
UK
France
Germany
Germany
USA
Russia
Italy
USA
China
Spain
Sweden
Brazil
Germany
UK
France
Italy
Spain
Netherlands
Germany
Russia
USA
China
Switzerland
Czech Rep.
Germany
Germany
Russia
USA
Brazil
UAE
France
Russia
Russia
Austria
Ukraine
Belgium
Kazakhstan
Czech Rep.
Sweden
Czech Rep.
Egypt
UAE
Germany
Germany
Italy
Russia
Austria
Ukraine
India
China
Libya
Turkey
China
Russia
India
Australia
Chile
Germany
Germany
Kazakhstan
Germany
Russia
Russia
Lebanon
Russia
France
Sweden
India
Ukraine
Turkey
USA
Czech Rep.
France
Denmark
UK
Malaysia
China
Denmark
Indonesia
UAE
Japan
Norway
However, from the point of view of providing access to information about Poland and possibilities to
establish economic contacts it is important to consolidate resources of portals functioning at
www.eksporter.gov.pl and www.trade.gov.pl. The aim of creating a portal is to integrate online resources
on economic issues in one place. The portal will include services concerning the promotion of exports
and establishing business contacts with foreign counterparties, integrate available offer systems in
Poland and abroad to increase the range of effects of trade offers submitted by enterprises and allow to
exchange information between producers, distributors and recipients, and will facilitate the conclusion of
contracts. This possibility will allow entrepreneurs to present their selling or purchasing needs with well
developed elements of direct contact. An important functional element of the portal, allowing the
establishment of trade contacts, will be the introduction of the possibility to choose the language version
appropriate for given portal users. The portal will be aimed both at entrepreneurs running their business
activity at home and foreign enterprises.
In 2011 in nine countries recognised as countries of destinations in the area of the placement of Polish
branded products and services, which are the countries with the most significant potential in terms of
investing in Poland (Germany, Italy, France, the Netherlands, Russia, the Czech Republic, the United
States, China, Ukraine), Poland’s image studies were carried out. On the basis of how Poland is seen
by foreign entrepreneurs and how Polish entrepreneurs perceive their position abroad a visualisation
244
concept of Polish economy promotion programme was developed, under which the Polish Economy
Brand Book was created. The aim of the promotion and the marketing measures in this area is to create
flagship brands in the future, which will be positively associated with Poland. Information and promotion
campaigns in national and foreign media will start at the beginning of 2013.
Promotion activities supporting exports are implemented also through the participation in the World’s
key promotional events (organisation of promotional undertakings, general promotional programmes).
The strategic objective of these activities is to diversify the directions of the promotion of exports and
economy: the idea behind these programmes is to create favourable conditions for entrepreneurs to
promote themselves during the World's key promotional events other than those promoting sectoral
programmes.
Polish exporters have developed an established position on EU markets. However, the growth potential
in the EU is running out. The necessity for the diversification of the directions of sale indicates the need
for promotion activities on less known markets, where the already existing presence should be
strengthened, and where the costs of promotion are higher than those on traditional markets and where
support under public funds makes lives of exporters easier.
Basing on objective criteria such as economic potential of the market, socio-political situation of the
State/region and its relations with the EU, geographical priorities for economic cooperation of regions
and economic self-government organisations, 5 countries were selected as promising markets, where
the promotion of Polish economy will be carried out: Canada, Brazil, Algeria, Kazakhstan, Turkey. Good
economic relations with local authorities and business, built via (not one-off but multiannual) promotion
activities, will make it easier for Polish companies to access them.
In addition, various measures aimed at improving the image of Poland and Polish economy (e.g. the
participation of Poland as a partner country in ILA 2012 Aviation Fair in Berlin, CEBIT 2013) will be
taken under these programmes.
13.6.3.3. Financial support for investments
Subsidies from the state budget granted by the Minister of Economy on the basis of the Programme to
support investments of high importance to the Polish economy for 2011-2020 adopted by the Council of
Ministers on 5 July 2011 are an important instrument for supporting investments. The aim of the
Programme is to enhance the innovativeness and competitiveness of the Polish economy through
supporting new investments made by Polish and foreign enterprises satisfying the criteria defined in the
Programme. This ultimate objective is to be achieved via the following specific objectives:
− to increase the share of innovative, high-tech investment,
− to create highly productive jobs.
This objective is pursued through supporting direct investment projects in high-tech sectors, as qualified
by the OECD. Support under the Programme is granted to entrepreneurs that meet the following criteria:
1) Entrepreneurs planning investments in the following priority sectors:
a) Automotive sector – particularly the manufacturing of: motor vehicles, bodyworks, trailers and
semi-trailers, car parts and accessories, car engines;
b) Electronic sector – particularly the manufacturing of: computers; radio, TV and
telecommunication equipment and devices; systems and components (in particular for
automotive, energy, household appliances and military industries);
c) Aviation sector – particularly the manufacturing of: aircrafts; aircraft parts and accessories;
aircraft engines; repairs, maintenance and overhauls of aircrafts and aircraft engines;
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MINISTRY OF ECONOMY
d) Biotechnology sector – particularly manufacturing in the area of white biotechnology applied in
industrial processes, and red biotechnology connected with medicine and health protection (e.g.
creating new medicinal products);
e) Sector of state-of-the-art services, on the condition that the services specifically referred to in
the Programme make up for at least 60% of the company’s processes;
f) R&D sector.
2) Entrepreneurs planning new production-related investment projects in sectors other than those
listed above, with a project’s minimum eligible costs of PLN 1 billion and at least 500 new jobs to be
created, hereinafter referred to as “significant investment projects” or “significant projects.”
Box 35 Programme to support investments of high importance to the Polish economy for 2011-2020
The Programme shall grant aid for initial investment under two titles:
− Eligible costs of creating new jobs;
− Eligible costs of investment.
Aid to cover eligible costs of creating new jobs can be applied for on the basis of:
− The execution of a new production investment in priority sectors, creating at least 250 jobs and with minimum
total eligible costs of investment of PLN 40 million;
− The execution of a new significant investment, creating at least 500 jobs and with minimum eligible costs of
investment of PLN 1 billion;
− The execution of a new investment project in the sector of state-of-the-art services, creating at least 250 new
jobs and with minimum investment outlays of PLN 2 million;
− The execution of a new investment project in the R&D sector, creating at least 35 new jobs for university
degree holders and with the minimum total costs of the investment of PLN 3 million. In the case of R&D
investment, aid is granted solely for the creation of jobs for university degree holders.
The value of investment projects that create new jobs in the sector of state-of-the-art services and R&D should be
at least twice as high as the value of the aid granted.
In turn, the aid to cover eligible costs of a new investment project can be applied for on the basis of:
− The execution of a new investment in priority sectors where eligible new investment costs amount to at least
PLN 160 million and where there are at least 50 new jobs to be created;
− The execution of a new production investment project where eligible new investment costs amount to at least
PLN 1 billion and where there are at least 500 new jobs to be created.
Aid granted under the Programme may not coincide with other forms of regional aid granted as direct subsidies
from the state budget, programmes co-financed by the European Union or tax exemptions in Special Economic
Zones if the aid under the Programme exceeds PLN 3 million, or 10% of the total amount of aid under the
Programme along with the regional aid granted in the form of direct subsidies from the state budget, programmes
co-financed by the European Union or a tax exemption in Special Economic Zones. There can exist exceptions to
the rule mentioned (whose catalogue is defined).132
Public aid (support) under the Programme is in conformity with the rules of granting public aid in the EU set forth
in the Guidelines on national regional aid for 2007-2013 (OJ C 54 of 4.3.2006, p. 13). Aid is granted with the
consent of the European Commission.
When the aid under the Programme supplements aid from a transparent regional investment aid programme, the
aid is granted pursuant to Article 13(1) of Commission Regulation (EC) No 800/2008 of 6 August 2008 declaring
certain categories of aid compatible with the common market in application of Articles 87 and 88 of the Treaty (OJ
L 214, 9.8.2008, p. 3).
The Programme is available on the website of the Ministry of Economy (www.mg.gov.pl) under “Supporting
entrepreneurship” → “Financial support and investment” → “Aid for investments that are important to the economy”.
132
246
Public aid granted to entrepreneurs from the state budget to support the execution of investment
projects under multiannual programmes (i.e. previously existing support systems) amounted to PLN
16.9 million in 2011 and PLN 3.6 million in 2012 (as of 31 May).
A local taxes and fees exemption is another important investment incentive available to entrepreneurs in
municipalities. Act of 12 January 1991 on local taxes and fees gives municipal councils powers in the
area of fixing tax rates and establishing the exemptions from taxes and fees provided for therein.
Property tax exemption is of key importance to entrepreneurs.
13.6.3.4. Special Economic Zones
Special Economic Zones (SEZ) are instruments intended to support regional development by attracting
new investment projects and promoting the creation of new jobs. Terms and conditions for investments
in these zones as well as benefits resulting from running businesses there are laid down in the Act of 20
October 1994 on special economic zones (consolidated text: Dz. U. of 200,7 No. 42, item 274, as
amended) Currently, there are 14 Special Economic Zones in Poland. At the end of December 2011 the
total area of SEZs amounted to 15 thousand ha. The zones were located in 143 cities and 203
municipalities. Compared to 2010, the total area of the zones increased by almost 939 ha. The
delimitation of the zones was changed eleven times, the areas of two zones, i.e. Kostrzyńsko-Słubicka
Zone and Starachowicka Zone, were changed twice though. The remaining changes pertained to the
following zones: Katowicka, Krakowska, Łódzka, Mielecka, Pomorska, Tarnobrzeska and Wałbrzyska.
At the end of 2011 there were 1,466 business permits to operate in these zones. Only in 2011, 188
permits were issued, which amounted to over 13% of the total number of valid permits. By the end of
2011 the entrepreneurs operating in the zones invested more than PLN 79.7 billion and ensured nearly
241.6 thousand work places in total, out of which nearly 182.9 thousand (i.e. 75.7%) were new jobs
created as a direct outcomes of new investments by the investors after they received a permit to run a
business in the zone. Almost 75% of the invested capital comes from 6 countries: Poland (17.8%),
Germany (16.5%), the USA (12.6%), the Netherlands (10.2%), Japan (9.2%), and Italy (8.5%).
As in the previous years, the automotive sector prevailed in the business structure of investments.
Investments made in this sector constitute over 25% of the total. The manufacturers of rubber and
plastic products (10.0%) ranked the second, and the manufacturers of other non-metallic raw material
products (9.4%) ranked the third. The manufacturers of metallic products ranked lower, but slightly
outdistanced manufacturers of computers and electronic and optic products. Their share in the total
amount of investment outlays amounted to 7.8% and 7.4%, respectively. In terms of industry the most
pronounced concentration was specific for the following zones: Legnicka, Katowicka and WarmińskoMazurska, where in 2011 the share of investments in the leading sectors amounted to 55.4%, 52.5%
and 49.1%, respectively. In the Legnicka and Katowicka Zones prevailed the automotive sector,
whereas in the Warmińsko-Mazurska Zone – the rubber and plastic products sector. A visible
concentration of investments in one industry was also reported in the Kamiennogórska and Krakowska
Zone, where printing services had 44.3% and 43.5% share of total investments, respectively. This
concentration was also recorded in the Słupska Zone, with a share of wood industry amounting to
37.1%.
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MINISTRY OF ECONOMY
Box 36 Terms and conditions for granting public aid to enterprises operating in SEZs.
Entrepreneurs who establish their businesses in Special Economic Zones may benefit from public aid in the form
of tax relief for:
1. cost of new investments,
2. creating new jobs.
The amount of aid depends on the maximum aid intensity specified for the area where the investment is
implemented and on the amount of costs eligible for aid. For businesses that choose to benefit from the support
for employment, the eligible costs refer to two-year costs of work performed by the newly employed workers,
whereas for businesses that opt for the investment support, the eligible costs concern the costs of a new
investment.
The maximum aid intensity for investments in the following Voivodeships: Lubelskie, Podkarpackie, WarmińskoMazurskie, Podlaskie, Opolskie, Świętokrzyskie, Małopolskiego, Lubuskie, Łódzkie and Kujawsko-Pomorskie,
was set at 50%, and in the remaining ones at 40%. Mazowieckie Voivodeship is the only exception, where since
1 January 2011 the ceiling of the support intensity has been 30%. For small and medium-size enterprises the aid
may be increased by 20 pp and by 10 pp, respectively. This does not refer to transport sector enterprises.
In order to benefit from the public aid a business permit must be granted by the zone Manager under the tender
procedure or negotiations procedure.133 The rules and forms of tenders and negotiations are set forth, for each
zone separately, in Ordinances of the Minister of Economy and Labour of 2004 on tenders, negotiations and
assessment criteria with regard to projects to be carried out by entrepreneurs in a zone.
Special Economic Zones provide for a favourable environment for establishing modern industrial and
technology parks and clusters, where competitive advantage of Poland is sought, particularly in such
sectors as automotive industry, aviation sector, production of construction materials, household
appliances and audio/video devices and highly specialised services.
The development of sector specialisations indicates a significant cluster potential of the zones. There
already exist examples of establishing cluster structures in the zones, such as Aviation Valley located in
the area of Mielecka Zone, Silesia Automotive in Katowicka Zone, a ICT cluster in Pomorska Zone, a
furniture cluster in Warmińsko-Mazurska Zone or clusters in their infancy, i.e. the beginning of an
automotive cluster in Wałbrzyska Zone and of a wood cluster in Suwalska Zone, but their sizes,
measured with the number of entities involved and relations between them, as well as geographical
scope, are accessed as small and without much significance for the development of the regions.
The development of clusters as a way of developing the competitiveness of entrepreneurs and
economic growth is more and more important, becoming part of strategies and programmes
implemented not only at national level, but also in the international arena – the EU (Europe 2020
strategy) and OECD (cluster-based development policy).
It is possible to conduct activities in Special Economic Zones without permission, however, income generated on such
activities, is not subject to income tax exemption.
133
248
Table 94 Activity of the SEZ (at the end of 2011)
No
Zone
Zone
area
(ha)
367.1
Voivodeship
dolnośląskie,
wielkopolskie
1
Kamiennogórska
2
Katowicka
1,929.2
śląskie, małopolskie,
opolskie
3
KostrzyńskoSłubicka
1,454.5
lubuskie,
zachodniopomorskie,
wielkopolskie
4
Krakowska
5
558.7
małopolskie,
podkarpackie
Legnicka
1,041.8
dolnośląskie
6
Łódzka
1,276.6
łódzkie, wielkopolskie,
mazowieckie
7
Mielecka
1,246.0
podkarpackie,
małopolskie, lubelskie,
zachodniopomorskie
Zone location
cities: Jawor, Jelenia Góra, Kamienna Góra, Lubań, Ostrów Wielkopolski,
Piechowice, Zgorzelec
gminy: Dobroszyce, Gryfów Śląski, Janowice Wielkie, Kamienna Góra,
Lubawka, Nowogrodziec, Prusice, śmigród
cities: Bielsko-Biała, Bieruń, Częstochowa, Dąbrowa Górnicza, Gliwice,
Jastrzębie-Zdrój, Katowice, Kędzierzyn-Koźle, Knurów, Lubliniec, Orzesze,
Rybnik, Siemianowice Śląskie, Sławków, Sosnowiec, Tychy, Zabrze,
Zawiercie, śory
cities: Czechowice-Dziedzice, Czerwionka-Leszczyny, Godów, Gogolin,
Kietrz, Koniecpol, Krapkowice, Myślenice, Pawłowice, Radziechowy-Wieprz,
Rajcza, Rudziniec, Siewierz, Strzelce Opolskie, Ujazd
cities: Białogard, Gorzów Wielkopolski, Gubin, Kostrzyn nad Odrą, Nowa
Sól, Poznań, Zielona Góra
gminy: Barlinek, Buk, Bytom Odrzański, ChodzieŜ, Czerwieńsk,
Dobiegniew, Goleniów, Gryfino, Gubin, Kargowa, Karlino, KoŜuchów,
Krobia, Lubsko, Łobez, Międzyrzecz, Nowy Tomyśl, Police, Przemęt,
Rzepin, Skwierzyna, Słubice, Stęszew, Sulęcin, Swarzędz, Wronki, Zielona
Góra
cities: Bochnia, Bukowno, Kraków, Krosno, Limanowa, Nowy Sącz,
Oświęcim, Tarnów
gminy: Andrychów, Bochnia, Boguchwała, Chełmek, Dobczyce, Gdów,
KsiąŜ Wielki, Niepołomice, Skawina, Słomniki, Wolbrom, Zabierzów, Zator
cities: Chojnów, Głogów, Legnica, Lubin, Złotoryja
gminy: Chojnów, Gromadka, Legnickie Pole, Miękinia, Polkowice,
Prochowice, Przemków, Środa Śląska
cities: Bełchatów, Koło, Konstantynów Łódzki, Kutno, Łęczyca, Łowicz,
Łódź, Ozorków, Piotrków Trybunalski, Płock, Pruszków, RaciąŜ,
Radomsko, Rawa Mazowiecka, Sieradz, Skierniewice, Tomaszów
Mazowiecki, Turek, Warszawa, Zduńska Wola, Zgierz, śyrardów
gminy: Aleksandrów Łódzki, Brójce, Grodzisk Mazowiecki, Kleszczów,
Koluszki, Ksawerów, Nowe Skalmierzyce, Opatówek, Opoczno,
Ostrzeszów, ParadyŜ, Przykona, Sławno, Słupca, Stryków, Tomaszów
Mazowiecki, Ujazd, Widawa, Wieluń, Wola Krzysztoporska, Wolbórz,
Wróblew, Zgierz, śabia Wola, śychlin
cities: Dębica, Gorlice, Jarosław, Krosno, LeŜajsk, Lubaczów, Lubartów,
Lublin, Mielec, Radzyń Podlaski, Rzeszów, Sanok, Szczecin, Zamość
gminy: Dębica, Głogów Małopolski, Jarosław, Kolbuszowa, LeŜajsk, Ostrów,
Ropczyce, Trzebownisko, Zagórz
Number
of valid
permits
Investments
(PLN
million)
Employment
50
1,667.2
4,413
205
211
18,154.6
37,680
10,861
124
4,215.5
12,369
6,720
66
1,773.8
7,035
2,755
49
4,889.0
9,046
254
154
9,033.1
18,091
6,733
162
5,097.0
14,565
3,822
new places
retained
jobs
Employment
8
Pomorska
9
Słupska
1,314.6
401.1
pomorskie, kujawskopomorskie,
zachodniopomorskie
pomorskie,
zachodniopomorskie,
wielkopolskie
świętokrzyskie,
mazowieckie, opolskie,
łódzkie, lubelskie
10
Starachowicka
612.9
11
Suwalska
342.8
podlaskie, warminskomazurskie,
mazowieckie
12
Tarnobrzeska
1,587.8
podkarpackie,
mazowieckie,
świętokrzyskie,
lubelskie, dolnośląskie
13
Wałbrzyska
2,073.7
dolnośląskie, opolskie,
wielkopolskie, lubuskie
14
WarmińskoMazurska
838.9
warmińsko-mazurskie,
mazowieckie
RAZEM
15,045.8
* areas joined in 2011 to the SEZ were bolded
cities: Bydgoszcz, Gdańsk, Gdynia, Grudziądz, Kwidzyn, Malbork, Piła,
Rypin, Stargard Szczeciński, Starogard Gdański, Tczew, Toruń
gminy: Barcin, Chojnice, Człuchów, Gniewino, Kowalewo Pomorskie,
Krokowa, Łysomice, Sztum, Świecie, Tczew, Wąbrzeźno
85
7,298.9
15,110
3.702
cities: Koszalin, Słupsk, Szczecinek, Wałcz
gminy: Debrzno, Rogoźno, Słupsk, śukowo
52
1,106.5
2,586
804
cities: Kielce, Ostrowiec Świętokrzyski, Puławy, SkarŜysko-Kamienna,
Starachowice
gminy: IłŜa, Końskie, Mniszków, Morawica, Piekoszów, Sędziszów,
Stąporków, Suchedniów, Szydłowiec, Tułowice
73
1,621.0
4,087
3.183
cities: Białystok, Ełk, Grajewo, Suwałki
gminy: Gołdap, Małkinia Górna, Suwałki
60
1,596.7
5,264
188
135
6,792.9
20,847
7.863
174
13,095.0
24,520
6.756
71
3,328.9
7,239
4.896
1,466
79,670.1
182,8525030
58,742
cities: Jasło, Kraśnik, Pionki, Przemyśl, Przeworsk, Radom, Siedlce,
Stalowa Wola, Tarnobrzeg, Tomaszów Lubelski
gminy: Gorzyce, Horodło, Janów Lubelski, Jasło, Jedlicze, Kobierzyce,
Łapy, Łuków, Nisko, Nowa Dęba, Nowe Miasto nad Pilicą, Orły, OŜarów
Mazowiecki, Pilawa, Połaniec, Poniatowa, Przasnysz, Ryki, Rymanów,
Siedlce, Staszów, Tomaszów Lubelski, Tuczępy, Węgrów, Wyszków
cities: Bielawa, Bolesławiec, DzierŜoniów, Kalisz, Kłodzko, Kudowa-Zdrój,
Leszno, Nowa Ruda, Oleśnica, Oława, Opole, Piława Górna, Świdnica,
Świebodzice, Wałbrzych, Wrocław
gminy: Brzeg Dolny, Bystrzyca Kłodzka, Długołęka, Góra, Jarocin, JelczLaskowice, Kluczbork, Kłodzko, Kobierzyce, Kościan, Krotoszyn, Namysłów,
Nowa Ruda, Nysa, Oława, Praszka, Prudnik, Rawicz, Skarbimierz,
Strzegom, Strzelin, Syców, Szprotawa, Śrem, Świdnica, Twardogóra,
Wiązów, Wołów, Września, Ząbkowice Śląskie, śarów
cities: Bartoszyce, Ciechanów, Elbląg, Iława, Lidzbark Warmiński, Mława,
Mrągowo, Nowe Miasto Lubawskie, Olsztyn, Ostrołęka, Ostróda
gminy: Barczewo, Bartoszyce, Ciechanów, Dobre Miasto, Iłowo-Osada,
Morąg, Nidzica, Olecko, Olsztynek, Orzysz, Pasłęk, Piecki, Pisz, Szczytno,
Wielbark
POLSKA 2012 - RAPORT O STANIE GOSPODARKI
13.6.3.5. Instruments for the development of business environment networks
Entrepreneurship and enterprise support system in Poland covers entities operating at three levels:
national (Ministry of Economy, Polish Agency for Enterprise Development among others), Voivodeship
(Marshal Offices, Regional Financing Institutions) and local. The last level includes organisations
registered in the National Service System for SMEs, including, inter alia: Consultation Points, Enterprise
Europe Network centres, Credit Guarantee Funds, Loan Funds, National Innovation Network and
others. These entities are responsible for development of strategies, programmes and for
implementation of the actions aimed at entrepreneurship support.
At the central level the policy for entrepreneurship in Poland is carried out by the Ministry of Economy,
the Ministry of Regional Development, the Ministry of Labour and Social Policy, the Ministry of National
Education and the Ministry of Science and Higher Education. Each of the Ministries is responsible,
within its mandate, for strategic and programme framework and for coordinating actions of other
institutions in the scope of operational activities. At the central level Polish Agency for Enterprise
Development performs the function of an institution implementing actions in this respect and of a
scientific and research base. PARP implements entrepreneurship and enterprise development
programmes. Under these programmes support is provided in such areas as company innovation and
R&D, international development of enterprises and regional and human resources development. In the
period 2007-2013, the Agency bears responsibility for the implementation of selected measures which
are co-financed with structural funds under the OP IE, the Human Capital Programme, the OP
'Development of Eastern Poland' and other entrepreneurship supporting instruments. To this purpose,
the Agency implements financial support, training and consultation services. It also carries out research
as well as information and promotion campaigns.
At regional level an important element of support are local government institutions. Implementation
activities are carried out via Marshal Offices and their subordinate institutions. Apart from promoting
entrepreneurship in their regions, their main objective is to ensure that entrepreneurs and people
planning to establish a business activity are provided with reliable information on:
− support programmes implemented at central and regional levels,
− establishing and running a business activity,
− the possibility to use advisory, training and financial aid.
At the executive level, there are direct service providers, i.e. institutions and organisations which are
dedicated to the implementation of entrepreneurship support instruments. The National Service System
(KSU) plays a particular role in the system. It is a PARP coordinated network of about 150 closely
cooperating organisations which provide services to the existing entrepreneurs and to persons who plan
to establish their own business. The KSU mission is to provide top-quality services in key areas
requiring state aid in order to develop entrepreneurship. The KSU provides comprehensive services in
the business running areas and the possibility to use external financing sources. The KSU network
includes Consultation Points, National Innovation Network, loan and guarantee funds.
The KSU Consultation Points provide free consultation services and co-financed advisory services on a
broad range of topics within the area of entrepreneurship development and entrepreneurs’ support
instruments for the entrepreneurs and for people planning to establish a business activity. At the
present, the KSU network includes 51 Consultation Points.
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MINISTRY OF ECONOMY
Consultation Points of the KSU network provide entrepreneurs and persons planning to establish a
business activity with information on the following issues:
− administrative and legal aspects of running a business (including establishment, performance
and winding up),
− rules and conditions of acceding public aid programmes and other external business financing
sources,
− possibilities and rules of using dedicated services of the system, e.g. training courses, advisory
services, technology transfer, obtaining loans and guarantees etc.
− contact details of institutions, useful at the early stage of development.
Assistance in establishing a business activity is an ideal form of aid for future entrepreneurs in all
aspects of setting up their own business. The service of assisting in establishing a business activity
ends when the client submits his/her application for entry into CEIDG. Qualified KSU network
consultants will take the client through all the steps and elements of establishing his/her own business.
In particular, they will:
− consult the profile of the planned business activity,
− help prepare a business plan and compile the necessary documentation.
In response to changes in demands and expectations of both entrepreneurs and persons planning to
establish a business activity, Consultation Points expand the scope of their services. Presently, the
following pilot services are implemented - if they bring a positive feedback, they will be included in the
scope of services provided by the KSU:
− protection of the environment (a pilot service provided from April 2011 to October 2012),
link: http://ksu.parp.gov.pl/pl/oferta_ksu/pilotaze/ochrona_srodowiska
− redeemable financing (a pilot service for providing advice in obtaining financing for SMEs,
implemented from May 2012 to March 2013).
link: http://ksu.parp.gov.pl/pl/oferta_ksu/pilotaze/finansowanie_zwrotne
National Innovation Network (KSI) is a group of KSU service providers who offer pro-innovative
consulting services, according to a specified and examined standard. This standard is laid down in
Ordinance of the Minister of Economy of 24 May 2011 on the National Service System for small and
medium-sized enterprises.
National Innovation Network provides services related to innovation in an identified market niche.
Presently, these services include in particular technological audit and servicing the technology transfer
process. Now, there are 23 operational centres of the National Innovation Network.
Warranty Funds are non-profit institutions. Their task is to provide entrepreneurs with an easier access
to external funds, such as bank loans and other types of loans. The Funds offer warranty for loans, bank
loans and in selected Funds tendering securities. The companies seeking a bank or other loan or a
public contract, but cannot present an adequate collateral, may apply for such warranty.
At the end of 2011 there were 51 warranty funds operating in Poland.134 41 warranty funds signed a
cooperation agreement with Polish Agency for Enterprise Development, out of which 10 are registered
in the National Service System. 17 warranty funds from the national warranty group Krajowa Grupa
Poręczeniowa Sp. z o.o. (of the National Economy Bank). In 2011 warranty funds granted more than 6
thousand guarantees for a total of PLN 967 million. In 2011 local and regional warranty funds with the
participation of BGK granted 4.6 thousand guarantees in the amount of PLN 656.8 million.
134
Based to data provided by the National Association of Warranty Funds.
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POLSKA 2012 - RAPORT O STANIE GOSPODARKI
Loan Funds grant loans to SMEs and to people establishing a business activity and facing difficulties in
raising commercial finance due to the lack of collateral or to their credit history. Loan funds grant loans
intended for establishing, running and developing enterprise activities.
At the end of 2011 there were 70 loan funds operating in Poland135, 33 of which are registered in the
National Service System. In 2011 loan funds granted nearly 8.8 thousand loans for a total value of PLN
578 million.
In the context of institutional business environment the effects of the implementation of the multiannual
programme entitled Participation of Poland in the Competitiveness and Innovation Framework
Programme 2008–2013 should be mentioned. The multiannual programme supported activities of
national contact points providing information on individual specific programmes and on CIP Programme
financial instruments, as well as the activities of Enterprise Europe Network centres.
CIP National Contact Points promote the instruments and measures implemented under CIP
Programme among the potential beneficiaries, develop information materials, organise information
stands during national events for entrepreneurs or supporting institutions, as well as use, for this
purpose, different media channels. Between 2008 and 2011 the contact points organised about 270
conferences, seminars, trainings and workshops on specific programmes under the CIP Programme,
which were attended by nearly 11 thousand participants. They provided the potential beneficiaries with
nearly 4,200 pieces of information, consultation and advice and more than 2,400 phone and e-mail
messages. They developed 110 promotional publications in the number of 634 thousand copies,
organised 229 information and promotion stands during fairs and conferences and established more
than 3,200 contacts with national and foreign industry institutions in the area of specific programmes.
Enterprise Europe Network, established as part of the Competitiveness and Innovation Framework
Programme 2007-2013 CIP combines the achievements and merits of two former networks which
strived to help the SMEs sector, namely the EUR Info Centre and the Innovation Relay Centre.136
EU funds are one of the sources of support for the institutional environment of Polish enterprises. Under
the financial perspective 2007-2013 this particularly applies to the Operational Programme Innovative
Economy (implemented under the priority Axes: III: Capital for Innovation and V: Innovation Diffusion,
which were financed from the European Regional Development Fund.
Under these measures, both competitive projects as well as individual and systemic projects are
implemented. For the competitive projects, since the beginning of the programme implementation until
May 2011 there were 14 recruitments, including 4 since the beginning of 2010 (1 under measure 3.1
and 3 as part of measure 5.1). Within the framework of individual and systemic projects, the support is
provided inter alia in the following areas:
− better access to external financing of SMEs at the beginning of their activity through the support
of SMEs investments with risk capital funds (individual project implemented by the National
Capital Fund under measure 3.2);
− support for covering the costs of pro-innovative consulting services which include: technological
audit which consists in assessing the potential and technological needs of an entrepreneur, his
possibilities and needs in the area of development of product or services; technology transfer
process (granted to entities acting for the benefit of innovation which are registered with the
KSU – systemic project implemented by PARP under measure 5.2);
135
136
Based to data provided by the Polish Union of Loan Funds.
Cf. Chapter 13.6.1.
253
MINISTRY OF ECONOMY
− propagating knowledge about design and the possibilities of its use by: organising workshops
for industrial designers, advisory workshops for entrepreneurs, creating a digital design library
and a digital communication platform (project realised by the Institute of Industrial Design under
measure 5.2);
− providing services as part of: pre-incubation phase of an enterprise (legal aid, finance and
accounting, office premises, audio/video conference system, consulting, training, marketing
support, assistance in raising capital) and incubation phase of an enterprise (laboratories,
conference rooms, contact network, consulting, e-administration) (Academic Business
Incubators under measure 5.2);
− measures aimed at entrepreneurs and at institutional business environment concerning issues
of intellectual property rights: education and training, advisory services and consultations aimed
at upgrade and exchange of experience in the area of intellectual property rights, conferences
and symposia popularising intellectual and industrial property rights, actions intended to provide
better access to patent literature databases and to increase their use, development of internetbased education and information platform related to intellectual and industrial property rights,
activities promoting good practices and Polish achievements in the area of protecting industrial
property (system project realised by the Patent Office of the Republic of Poland under measure
5.2).
Until the end of May 2012, within the framework of the OP IE, which supports the institutional business
environment and for which implementation the Minister of Economy is responsible, there were 465
contracts signed, amounting to a total aid sum of PLN 3.5 billion, which constitutes 71.1% of the total
sum allocated for these measures. The beneficiaries of these measures were paid PLN 1.4 billion
(40.8% of the total allocated sum).
Table 95 Status of implementation of the priorities of III and V OP strengthen institutions in the context of
the business environment
Priority III
− measure 3.1
− measure 3.2
− measure 3.3
Priority V
− measure 5.1
− measure 5.2
− measure 5.3
Allocation
(EUR mn)
Number of signed
contracts
174.9
159.7
35.4
45
1
215
(24)
104.3
657
249.7
25.2
Value of signed
contracts (PLN bn)
Value of payments
(PLN bn)
564.2
646.8
117.5
(93.3)
241.3
455.8
81.5
(65.7)
74.6
93.5
78.0
8
106.9
23.5
72.6
32
228.0
81.1
140.0
12
801.6
74.9
418.7
152
35.1
32.3
21.8
− measure 5.4
(23)
(21.9)
(18.7)
814.9
465
2499.2
71.1
1431.6
Total
(47)
(115.2)
(84.4)
As at 1.06.2012, values parentheses represent the values for this part of the operation, which supports the IOB
Source: Ministry of Economy, European Funds Department
254
31.9
65.9
54.1
16.0
49.8
39.1
20.0
40.8
Table 96 The list of activities / sub OPIE support IOB
Measures/
submeasures
3.1 Initiating
innovative activity
Goal
Projects
Beneficiaries
Increasing the number of
companies based on
innovative solutions
Related to the search for and evaluation of innovative ideas, potential entrepreneurs, the
preparatory work aimed at creating a new company based on this idea (so-called preincubation) and capital investments in the newly established company.
Institutions supporting the
creation of innovative
companies, such as
incubators
National Equity Fund
3.2 Support of
Increasing access to
venture capital funds external sources of
financing for SMEs in the
early stages of growth
I level: individual project of the National Capital Fund (KFK) of encouraging venture
capital funds investing in SMEs in the early stages of their development
II level: projects of venture capital funds supported by the NCF by: 1) investments in
equity, quasi-equity and debt funds, venture capital, formed to invest in SMEs, in
particular in SMEs at early stages of development , with a particular focus on innovative
enterprises and leading R & D, 2) refund the cost of managing a venture capital fund
(employment of personnel and experts, and the cost of preparing and monitoring the
investment).
3.3 Create a system Activation of the private
Sub-measure 3.3.2 Support for IOB: Preparation of potential and existing entrepreneurs
to facilitate
investor market through
to seek investors and the proper presentation of their offers, including training for
investment in SMEs the creation of favorable
entrepreneurs on external financing, information and promotion of services and benefits
conditions for initiating
offered by a network of private investors, including business angels network, establishing
cooperation investors with cooperation between operating networks of private investors, and such business
entrepreneurs seeking
incubators, as well as between the networks and venture capital funds, the creation of
funding for the
new and development of existing networks of private investors, organization,
implementation of
development and maintenance of exchange platforms on potential investments, creating
innovative projects
platforms to match investors with entrepreneurs seeking external funding of the equity,
training programs.
Strengthen the competitive For the development of cooperative relations, including, among others: the purchase of
5.1 Supporting
cooperative relations position of enterprises by fixed assets and intangible assets related to new investment consultancy in the
supra-regional
supporting the
development of plans for development and expansion of the association, participation in
development of
national and international meetings to share experiences, purchase communal research
relationships between
infrastructure; action promotion to recruit new companies to participate in the association,
enterprises and IOB
access facilities management relations, organization of training programs, workshops
and conferences.
5. Support network
of business service
providers
supraregional
Providing entrepreneurs
with access to
comprehensive, highquality business services
necessary from the point
of view of innovation.
System project implemented by PARP: "The development of advisory services
proinnovative provided by the National Network of Centres of Innovation (KSI)":
Individual project carried out by the Institute of Industrial Design, "Design Your Profit": the
aim of the project is to create the best conditions for the development of industrial design,
enabling the cooperation of entrepreneurs and designers.
Individual project implemented by the Academic Enterprise Incubators Fri: "Polish road to
Sub-measure 3.3.2 Support
for IOB: Business
environment institutions
(including existing and
emerging network of
investors, providers of
advisory services for
companies)
Legal person cooperative
relations
Business environment
institutions operating in
networks and IOB, the Polish
Agency for Enterprise
Development (Project
System), the Institute of
5.3 Support for
innovation centres
5.4 Management of
Intellectual Property
entrepreneurship": The aim of the project is to create conditions for the formation and
development of entrepreneurship in Poland by supporting the diffusion of innovation,
networking, business and academia, analysis of foreign experience, adaptation and
implementation of best practices to the Polish reality.
Individual project carried out by the Institute of Industrial Design, "Design Your Profit": the
aim of the project is to create the best conditions for the development of industrial design,
enabling the cooperation of entrepreneurs and designers.
Individual project implemented by the Academic Enterprise Incubators Fri: "Polish road to
entrepreneurship": The aim of the project is to create conditions for the formation and
development of entrepreneurship in Poland by supporting the diffusion of innovation,
networking, business and academia, analysis of foreign experience, adaptation and
implementation of best practices to the Polish reality.
The system design of the Patent Office, "Support the efficient use of industrial property in
the innovation economy". The main aim of the project is to increase the role of industrial
property rights for the development of the Polish economy.
Supporting the creation
Individual projects, which include: support for innovation centers for advice in the
and development centers preparation of the center's development strategy takes into account the needs of
are located in areas with
entrepreneurs (eg preparation of feasibility studies, market research, business demand
high growth potential in
for the highly specialist services), advisory services and promotion resulting from the
order to ensure access to center's development strategy (databases, coaching, matchmaking, finding projects to
comprehensive services to support, seeking markets for products manufactured in the facility, estimating the cost of
entrepreneurs seeking to
implementing a project for the production of the entrepreneur, the assessment of the
introduce new solutions,
market value of the results of R & D) investments arising from center's development
as well as researchers
strategy for expansion or modernization of existing technical infrastructure and
who want to start a
promotional activities resulting from the center's development strategy for the promotion
business
of innovation-oriented services business institutions in the local, regional and
international
Improving the efficiency of Sub-measure 5.4.2: Popularization of knowledge of intellectual property: the
dissemination of knowledge about the benefits of intellectual property protection in
the innovation market, in
enterprises
particular the flow of
innovative solutions by
promoting the use of
industrial property rights,
including obtaining
protection of industrial
property rights
Industrial Design, Academic
Business Incubators
(individual project), the
Patent Office (Project
System)
Highly specialized business
services with high potential
market and technology
Sub-measure 5.4.2:
Popularization of knowledge
of intellectual property:
Business institutions
List of tables
Table 1 Basic indicators of the economic situation in 1995, 2002-2011 (dynamics, previous year = 100) _____ 21
Table 2 GDP growth rate in constant prices as compared to the previous year _________________________ 24
Table 3 Basic growth indices of the US economy (as compared to the previous year) in %________________ 25
Table 4 Basic growth indices of the Japanese economy (as compared to the previous year) in % __________ 26
Table 5 Basic growth indices of the Eurozone (as compared to the previous year) in % __________________ 28
Table 6 GDP growth rate and consumer prices (as compared to the previous year) in % _________________ 29
Table 7 GDP growth rate and consumer prices (as compared to the previous year) in % _________________ 31
Table 8 The rate of changes in the World volume of trade and services exchange in the years 2010-2013 (as
compared to the previous year, %) ___________________________________________________________ 31
Table 9 The rate of changes in the World volume of trade exchange in the years 2008-2011 (as compared to the
previous year, %)_________________________________________________________________________ 32
Table 10 International trade in goods in 2011 ___________________________________________________ 36
Table 11 Trade in goods and GDP growth rate in 2008-2013 (as compared to the previous year, %) ________ 37
Table 12 Trade volume in goods and services growth rate in the years 2011-2013 (as compared to the previous
year, %) ________________________________________________________________________________ 38
Table 13 General government balance in EU, USA and Japan in the years 2007-2013___________________ 39
Table 14 General government debt in EU, USA and Japan in the years 2007-2013 _____________________ 41
Table 15 Absorption of the Structural Funds within The National Strategic Reference Framework __________ 69
Table 16 Ranking of economic freedom _______________________________________________________ 73
Table 17 IMD Ranking_____________________________________________________________________ 74
Table 18 Top priority host economy for FDI Ranking _____________________________________________ 74
Table 19 The most attractive European economies within 3 years time _______________________________ 74
Table 20 Doing Business Ranking ___________________________________________________________ 75
Table 21 Ranking based on the Global Competitiveness Index (GCI) ________________________________ 76
Table 22 Major indicators of the Europe 2020 Strategy – Poland compared to the EU ___________________ 78
Table 23 GDP and domestic demand growth rate in 2005-2011 (constant prices) _______________________ 80
Table 24 Demand decomposition of GDP in 2006-2011 (in pp.) _____________________________________ 81
Table 25 Economic growth factors in Poland in 2001-2011 (in pp) ___________________________________ 82
Table 26 Employment rate in Poland among persons aged 15-65 in comparison with the EU (in %)_________ 82
Table 27 An average annual effective working time per one employee per week in Poland in comparison with the
EU (in hours) ____________________________________________________________________________ 82
Table 28 Accumulation and investment rates as compared with the real growth of GDP and gross fixed capital
formation in the years 2005-2011 ____________________________________________________________ 85
Table 29 Private and public sector’s investment in the years 2005-2010 (in % of GDP)___________________ 86
Table 30 Changes in real unit labour costs in Poland compared with the European Union ________________ 88
Table 31 Growth rate of the GDP and gross value added in the years 2005-2011 (%)____________________ 89
Table 32 Changes in the structure of value added in 2005-2011 in current prices _______________________ 90
Table 33 GDP per capita of selected countries of EU in 2005-2011 compared (purchasing power parity) _____ 91
Table 34 Persons aged 20-64 employed in 2005-2011____________________________________________ 93
Table 35 Situation on the labour market in 2005-2011 in the age group of 20-64 (%) ____________________ 93
Table 36 Average employment in the enterprise sector (in thousands)________________________________ 94
Table 37 Experience of emigration and labor market situation in 2011 (in %)___________________________ 98
Table 38 Poland’s commodity trade in January 2011 – June 2012 __________________________________ 102
Table 39 Changes in the geographical structure of Polish trade (EUR mln) ___________________________ 107
Table 40 Changes in the commodity structure of the Polish foreign trade in 2011, EUR mln ______________ 110
Table 41 Changes in the commodity structure of the Polish foreign trade in 1st half of year 2012, EUR mln__ 114
Table 42 CPI and core inflation in 2011 and in the subsequent months of 2012________________________ 119
Table 43 Budget receipts and expenditure in 2010-2011*_________________________________________ 126
Table 44 Structure of budgetary expenditure (%) _______________________________________________ 127
Table 45 State Treasury debt and general government sector debt* (PLN billion and % of GDP) __________ 129
Table 46 Meeting the Maastricht criteria by Poland______________________________________________ 132
Table 47 Dynamics of output, employment, efficiencyeffieciency and salaries in industrial sections in 2010-2011
_____________________________________________________________________________________ 136
Table 48 Share of industry branches in output in current prices and constant prices ____________________ 138
257
MINISTRY OF ECONOMY
Table 49 Output value, output dynamics and prices in selected branches of the manufacturing industry_____ 138
Table 50 Manufacture of selected products in the years 2009-2011_________________________________ 140
Table 51 Production and financial results of the hard coal mining companies with majority state-ownedsector 142
Table 52 Renewable energy (RWS) share in gross domestic energy consumption in 2005-2011 __________ 154
Table 53 Energy output from different specific renewable energy sources in 2005 - -2011 (GWh). _________ 155
Table 54 Biocomponents – basic data for 2011 ________________________________________________ 157
Table 55 Liquid biofuels – basic data for 2011 _________________________________________________ 157
Table 56 Average fluctuations of GDP energy intensity indicators (%/year) ___________________________ 158
Table 57 Dynamics and structure of sold construction and assembly production in companies employing more
than 9 people in 2010-2011________________________________________________________________ 175
Table 58 Number of flats commissioned by business type in 2009-2011 _____________________________ 176
Table 59 Services sector’s economic entities by ownership and section of Polish Classification of Activities 2007
in 2010-2011* __________________________________________________________________________ 180
Table 60 Average employment in services sector (thous.)* _______________________________________ 180
Table 61 Economic entities from Trade and repairs section by number of employees and Polish Classification of
Activities divisions in 2009-2011**___________________________________________________________ 181
Table 62 Employment in Trade and repairs sector (by Polish Classification of Activities divisions) as of the end of
2011* _________________________________________________________________________________ 182
Table 63 Important economic and financial data for the section of transportation and storage by Polish
Classification of Activities divisions in 2011* ___________________________________________________ 185
Table 64 Share of the private sector in the basic economic categories (in %) _________________________ 189
Table 65 Number of companies subject to ownership transformation* _______________________________ 192
Table 66 Basic features of micro-enterprises sector _____________________________________________ 195
Table 67 Newly established enterprises in Poland in the years 2005-2010 ___________________________ 196
Table 68 Revenues, costs and results by types of activities (PLN billion)_____________________________ 197
Table 69 Changes of revenues and results in 2011 (in comparison with 2010) ________________________ 198
Table 70 Revenues, results, profitability – economy sections in 2010 and 2011 _______________________ 203
Table 71 Revenues, results, profitability – ownership sectors and in enterprises according to their size in the
years 2010-2011 ________________________________________________________________________ 205
Table 72 The 10 largest company as regards revenues from sales and net financial in 2011 (PLN mln)* ____ 206
Table 73 Investments (including the purchase of used fixed assets) and the potential for their financing with
investment surplus, debt and potential time of its payment, liabilities and liquidity in the sectors of the economy in
the years 2010 and 2011__________________________________________________________________ 207
Table 74 Investments (including the purchase of used fixed assets) and the potential for their financing with
investment surplus, debt and potential time of its payment, liabilities and liquidity by size of enterprise in the years
2010 and 2011 _________________________________________________________________________ 208
Table 75 Capital expenditures in 2006-2011 (in PLN bln)_________________________________________ 210
Table 76 Capital expenditures in sections of the economy in PLN billion, current prices _________________ 210
Table 77 Investment expenditures in manufacturing by NACE divisions in PLN million __________________ 211
Table 78 New investments in sections of economy______________________________________________ 212
Table 79 Value of credits and deposits of enterprises in the years 2008-2012 PLN billion ________________ 212
Table 80 Polish foreign direct investments in the years 2006-2011 (EUR million) ______________________ 214
Table 81 Basic financial categories of companies with foreign capital with the number of employees exceeding 9
persons as compared to entities submitting balance sheet in the years 2008-2010 (as at the end of year) in PLN
million ________________________________________________________________________________ 216
Table 82 Value of exports and imports and shaker of companies with foreign capital in Polish foreign trade
turnover (in PLN bln) in 2006-2010 __________________________________________________________ 217
Table 83 Revenues from sales, exports-to-sales ratio and employment in selected foreign companies in Poland in
the years 2008-2011 _____________________________________________________________________ 217
Table 84 Structure of FDI inflow to Poland in the years 2006-2011 EUR million________________________ 219
Table 85 Geographical breakdown of the FDI inflow to Poland by countries of investment capital origin and
liabilities as at the end of 2010, in EUR million _________________________________________________ 220
Table 86 FDI in Poland by sections and divisions of NACE in the year 2010 __________________________ 222
Table 87 Innovation indices for Poland and EU_________________________________________________ 224
Table 88 Enterprises, which develop process and/or product innovations (% of enterprises, by size clases) _ 225
258
Table 89 Cooperation in innovation activity (% of active innovative enterprises, by size classes) __________
Table 90 Gross Domestic Expenditure on R&D (GERD) to GDP ratios according to institutional sectors in the
years 2000, 2005-2010 ___________________________________________________________________
Table 91 Barriers to development ___________________________________________________________
Table 92 Allocation of funds under OPIE by priority (8 June 2012)__________________________________
Table 93 Target countries covered by the trade promotion programmes _____________________________
Table 94 Activity of the SEZ (at the end of 2011) _______________________________________________
Table 95 Status of implementation of the priorities of III and V OP strengthen institutions in the context of the
business environment ____________________________________________________________________
Table 96 The list of activities / sub OPIE support IOB____________________________________________
259
226
227
236
238
244
249
254
255
MINISTRY OF ECONOMY
List of charts
Chart 1 General government balance in EU, euro area, USA and Japan the years 2007-2013, in % of GDP __ 40
Chart 2 General government debt in EU, USA and Japan in the years 2007-2013_______________________ 42
Chart 3 2011 EU GDP growth (y/y) in % _______________________________________________________ 44
Chart 4 2011 EU industrial output (y/y) in % ____________________________________________________ 44
Chart 5 2011 EU construction and assembly production (y/y) in %___________________________________ 45
Chart 6 The European Semester Mechanism ___________________________________________________ 52
Chart 7 Number and value of co-financing contracts acc. beneficiaries’ type (as of the end of 2011) ________ 70
Chart 8 Number and value of co-financing companies’ projects by programme (as of the end of 2011). ______ 71
Chart 9 GDP growth rate in 2000-2011 ________________________________________________________ 79
Chart 10 Quarterly demand decomposition of GDP in 2008-2012 (in pp.) _____________________________ 81
Chart 11 Domestic and foreign demand contribution to the GDP growth in 2005-2011 ___________________ 83
Chart 12 Domestic demand components contribution to the GDP growth in the years 2008-2012___________ 84
Chart 13 Changes in private consumption (data adjusted seasonally) and the CPI in the years 2008-2012 ___ 85
Chart 14 Dynamics of gross fixed capital formation (left axis) and GDP (right axis) in years 2008-2012 ______ 86
Chart 15 Contribution of the exports and imports of goods and services in GDP 2008-2012 _______________ 87
Chart 16 Growth rate of exports of goods and services (left axis) and economic growth (right axis) 2008-2012 88
Chart 17 Labour productivity of particular sectors in 2005-2011 (2005=100) ___________________________ 88
Chart 18 Sectoral decomposition of GDP in the years 2005-2011 ___________________________________ 90
Chart 19 Average employment in the enterprise sector (in thousands) in the years 2005–2012 ____________ 94
Chart 20 LFS unemployment rate and registered unemployment rate at the end of the quarter in the years 2005–
2012 __________________________________________________________________________________ 95
Chart 21 Professional qualifications improving in each age group (share of total) _______________________ 96
Chart 22 Monthly commodity trade balance in January 2011 – June 2012____________________________ 103
Chart 23 Monthly dynamics of exports and imports in January 2011 – June 2012 ______________________ 103
Chart 24 Share of particular markets groups in Polish exports in 2011_______________________________ 106
Chart 25 Commodity structure of Polish exports in 2011, compared to 2006 and 2010 __________________ 111
Chart 26 Commodity structure of Polish imports in 2011, compared to 2006 and 2010 __________________ 111
Chart 27 Commodity structure of foreign exchange balance in 2011, as compared to 2006 and 2010 ______ 112
Chart 28 Transaction prices, foreign currency prices and NEER changes in exports in 2000-2011 _________ 116
Chart 29 Changes in the Consumer Price Index in 2006-2011 _____________________________________ 117
Chart 30 Consumer price growth rate in comparison to the same month of the previous year _____________ 118
Chart 31 Changes of industrial output prices in comparison to the same months of the previous year ______ 120
Chart 32 Changes in prices of construction and assembly production in comparison to the same month of the
previous year___________________________________________________________________________ 120
Chart 33 CPI and net inflation indices as compared to the adopted inflation target, and the range of acceptable
fluctuations ____________________________________________________________________________ 122
Chart 34 Interest rates and CPI_____________________________________________________________ 123
Chart 35 Budget deficit and general government sector deficit _____________________________________ 128
Chart 36 Industrial output changes in each quarter of 2009-2012 (in %, compared to the same quarters of the
previous year, current prices)*______________________________________________________________ 133
Chart 37 Changes in industrial output by sections in 2009-2010-2011 (compared to the previous year) _____ 134
Chart 38 Changes in labour efficiency by sections of industry in 2010 and 2011 (in comparison ___________ 135
Chart 39 Changes in labour efficiency and salaries in industrial sections in 2010 and 2011 (in comparison to the
previous year) __________________________________________________________________________ 137
Chart 40 Employment in branches by each chemical industry sector ________________________________ 145
Chart 41 Gross profitability indices of the branches of chemical sectors______________________________ 146
Chart 42 Efficiency indices of chemical sector branches (per 1 employee, thous. PLN)__________________ 146
Chart 43 Labour efficiency per 1 person employed in light industry sectors (in thous. PLN)_______________ 150
Chart 44 Power of RES in 2005-2012 ________________________________________________________ 155
Chart 45 Primary energy and final energy consumption __________________________________________ 158
Chart 46 Final energy consumption in Poland depending by sectors ________________________________ 159
Chart 47 Final industrial energy consumption depending by carriers ________________________________ 160
260
Chart 48 Changes in the energy intensity rate (left axis) and electricity intensity (right axis) of value added in the
service sector __________________________________________________________________________ 160
Chart 49 Changes of gross fixed capital formation and gross value added in the construction sector in the years
2008-2011 (in % compared to the previous year, in constant prices) ________________________________ 173
Chart 50 Changes of gross value added in the construction sector in the years 2008-2012 (in % compared to the
corresponding quarter of the previous Lear; in constant prices).____________________________________ 174
Chart 51 Share of the private sector in total gross value added in the selected sectors of the economy in 2000
and 2009 (in %) _________________________________________________________________________ 189
Chart 52 New registered and deregistered entities in the national economy under the REGON ___________ 195
Chart 53 Structure of newly established small enterprises in 2010 __________________________________ 196
Chart 54 Financial results on business activities in 2010 and 2011 (PLN bln) _________________________ 198
Chart 55 Financial profitability indices in 2010 and 2011 (%) ______________________________________ 199
Chart 56 Investment expenditures in the years 2006-2011 (PLN bln, % change)_______________________ 199
Chart 57 Basic financial features by ownership sectors in 2011 (w%) _______________________________ 204
Chart 58 Basic financial features by enterprises size in 2011 (in %)_________________________________ 206
Chart 59 Changes in investment expenditures in the years 2006-2011 in % (as compared to the previous year),
constant prices _________________________________________________________________________ 209
Chart 60 FDI inflow to Poland in the years 2001-2011 in EUR billion ________________________________ 218
Chart 61 Liabilities due to FDI as at year end in the years 2003-2011 _______________________________ 220
Chart 62 Summary Innovation Index (SII) for selected countries ___________________________________ 223
Chart 63 Innovation and business centres in Poland in the years 1991 and 2000-2010__________________ 228
Chart 64 Entrepreneurs’ opinions on business regulation _________________________________________ 234
Chart 65 The most serious barriers to development of enterprises in the second half of 2011_____________ 235
Chart 66 Indicator of expectations – conditions for conducting business _____________________________ 236
261
MINISTRY OF ECONOMY
List of boxes
Box 1 Economic governance “six-pack” _______________________________________________________ 47
Box 2 Alert mechanism ____________________________________________________________________ 48
Box 3 ‘Banking union’ initiative ______________________________________________________________ 49
Box 4 European consensus on growth ________________________________________________________ 50
Box 5 National Reform Programme – selected measures__________________________________________ 51
Box 6 Council recommendations for the Polish economic policy ____________________________________ 53
Box 7 SOLVIT – network for out of court dispute resolution ________________________________________ 55
Box 8 Act on the provision of services in the territory of the Republic of Poland_________________________ 56
Box 9 Performance check __________________________________________________________________ 57
Box 10 Directive on the recognition of professional qualifications – proposed changes ___________________ 58
Box 11 Industrial Policy: Reinforcing competitiveness ____________________________________________ 59
Box 12 New financial perspective – new mechanisms ____________________________________________ 72
Box 13 Headline indicators – definitions _______________________________________________________ 77
Box 14 The legalization of stay of foreigners in Poland____________________________________________ 98
Box 15 Polish Migration Policy – current situation and requested measures ___________________________ 99
Box 16 New measures of core inflation _______________________________________________________ 119
Box 17 Measures aimed at public finance consolidation__________________________________________ 129
Box 18 Fiscal rules ______________________________________________________________________ 130
Box 19 Task schedule for light industry sectors 2008–2013 _______________________________________ 151
Box 20 System of support for electricity production from renewable energy sources ____________________ 155
Box 21 Draft Act on renewable energy sources ________________________________________________ 156
Box 22 Mechanism of allocating free emission allowances________________________________________ 163
Box 23 CO2 capture and storage technology __________________________________________________ 163
Box 24 “Poznaj atom” (“Get to know the atom”) information campaign_______________________________ 164
Box 25 The National Programme for the Development of Low-emission Economy _____________________ 172
Box 26 Privatisation plans _________________________________________________________________ 190
Box 27 Privatisation directions in 2012 _______________________________________________________ 193
Box 28 Polish foreign investments in 2011 ____________________________________________________ 214
Box 29 Programme to support investments of high importance to the Polish economy for 2011–2020 ______ 219
Box 30 Cluster and cluster initiative _________________________________________________________ 227
Box 31 Better Regulation Programme for 2012–2015____________________________________________ 229
Box 32 Amendment of the Act on payment deadlines in commercial transactions ______________________ 233
Box 33 Research and Development Centre Status______________________________________________ 240
Box 34 Amendment of the Act on certain forms of supporting innovation activities _____________________ 241
Box 35 Programme to support investments of high importance to the Polish economy for 2011-2020_______ 246
Box 36 Terms and conditions for granting public aid to enterprises operating in SEZs. __________________ 248
262

POLAND 2012 ECONOMY

Transcription

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