Poland s ECONOMIC PERFORMANCE

Poland s ECONOMIC PERFORMANCE Trade and Investment Promotion Section Embassy of the Republic of Poland in The Hague June 2014 Project co-financed by the European Union from European Regional Development Fund

Strenghts of Poland Area: 323 thousand km 2-9th in Europe, 69th in the world Population: 38.5 million - 8th in Europe, 34th in the world Currency: Polish Zloty (USD 1 PLN 3.04) (EUR 1 PLN 4.13) Large domestic market Central location in Europe GDP total PPP: EUR 664 bln (USD 814 bln) Country comparison to the world 22 GDP total: EUR 419,3 bln (USD 513,9 bln) GDP per capita PPP: EUR 17 214 (USD 21 100) Country comparison to the world 69 GDP growth: 1.6% Membership: OECD, WTO, NATO, EU International legal and business standards Young and welleducated workforce

Poland Sustainable and balanced economic growth Poland joins the EU Schengen Leader of GDP growth in EU EU Presidency 1 800 000 WTO Entry into the NATO 1 600 000 1 400 000 1 200 000 1 000 000 OECD 800 000 600 000 400 000 200 000

Poland s economic growth 1993-2014 1 1 0,9 1,1 2,7 2,4 2,8 2,5 2,5 1,4 1,3 1,5 1,5 1,3-0,4-0,4-0,6-0,4 OECD IMF World Eurostat 2013 2014 Bank Forecasts for Euro Area OECD IMF World MoF Eurostat 2013 2014 Bank Forecasts for Poland

GDP, nominal (PPP, USD bn, 2012) Hungary; 195,6 Lithuania; 65,0 Slovakia; 131,9 CEE Countries Latvia; 37,3 Slovenia; Estonia; 58,0 29,1 Poland; 800.9 Netherlands 707,0 Other countries 3 553,7 European Union Germany 3 197,1 UK 2 336,3 Czech Rep.; 287,0 Data: IMF Spain 1 410,6 Italy 1 832,9 France 2 254,1

Bulgaria Czech R. Estonia Lithuania Latvia Poland Romania Slovakia Slovenia Hungary Poland s Economic Performance CEE & Balkan EU member states - GDP growth rates 2009-2012 Compared with the same period of the previous year 15,0 10,0 2009 2010 2011 2012 8,3 5,0 0,0-5,0-10,0 1,8 2,5 1,9 0,4 0,8-1,3-4,5-5,5 3,3 3,2 5,55,6 5,9 3,7 1,5-0,9 3,9 4,5 1,6 1,9 2,2-1,1-6,6 0,2 1,2 0,6-2,3-7,8 4,4 3,2 2,0-4,9 1,3 1,6-1,7-6,8-15,0-14,1-14,8-20,0-17,7 Data: Eurostat

GDP changes in CEE region 2004-2014 (%) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 EU 27 2.5 2.1 3.3 3.2 0.3-4.3 2.1 1.6-0.3 0.0 1.4 Euro Area 2.2 1.7 3.2 2.9 0.4-4.4 2.0 1.4-0.6-0.4 1.1 Bulgaria 6.7 6.4 6.5 6.4 6.2-5.5 0.4 1.8 0.8 0.5 1.7 Czech Rep. 4.7 6.8 7.0 5.7 3.1-4.5 2.5 1.8-1.3-1.0 1.8 Estonia 6.3 8.9 10.1 7.5-4.2-14.1 2.6 9.6 3.9 1.3 3.0 Latvia 8.9 10.1 11,2 9.6-3.3-17.7-1.3 5.3 5.2 4.0 4.1 Liithuania 7.4 7.8 7.8 9.8 2.9-14.8 1.6 6.0 3.7 3.4 3.6 Hungary 4.8 4.0 3.9 0.1 0.9-6.8 1.1 1.6-1.7 0.7 1.8 Poland 5.3 3.6 6.2 6.8 5.1 1.6 3.9 4.5 1.9 1.3 2.5 Romania 8.5 4.2 7.9 6.3 7.3-6.6-1.1 2.2 0.7 2.2 2.1 Slovenia 4.4 4.0 5.8 7.0 3.4-7.9 1.3 0.7-2.5-2.7-1.0 Slovakia 5.1 6.7 8.3 10.5 5.8-4.9 4.4 3.0 1.8 0.9 2.1 Data: Eurostat, 2013-2014 forecast

Poland s industrial production Monthly in cumulative terms (yoy) 10,0 9,1 8,0 7,1 2012 2013 6,0 4,9 4,6 4,5 4,0 2,0 3,8 4,1 3,5 2,5 2,5 2,1 1,0 0,4 0,5 0,8 1,4 1,7 1,8 2,5 0,0-2,0-1,0-0,9-1,0-0,4-4,0 2012 I Data: Poland s CSO I-II I-III I-IV I-V I-VI I-VII I-VIII I-IX I-X I-XI I-XII 2013 I -2,0 * MoE forecast I-II I-III I-IV I-V I-VI I-VII I-VIII I-IX I-X I-XI I-XII* January-November 2013 - Industrial production increased by 1.8% (yoy); - Prices of sold production of industry decreased by 1.3%.

Poland s construction production Monthly in cumulative term (yoy) 40,0 32,2 32,0 24,0 23,7 2012 2013 16,0 14,9 13,0 11,9 8,0 8,0 4,8 3,8 1,4 1,8 1,5 0,0-1,0-8,0-16,0-24,0-32,0 Data: Poland s CSO -16,1-11,7-15,1-17,9-21,5-21,5-17,7-17,2-14,4-13,9-15,6 2012 I I-II I-III I-IV I-V I-VI I-VII I-VIII I-IX I-X I-XI I-XII 2013 I I-II I-III I-IV I-V I-VI I-VII I-VIII I-IX I-X I-XI I-XII* -9,5 * MoE forecast January-November 2013 - Construction production decreased by 13.9% (yoy); - Prices in construction sector decreased by 1.8%.

Labour market unemployment rate Monthly in cumulative terms (yoy) 15,0 2012 14,2 14,4 14,3 2013 14,0 13,0 13,4 13,3 13,4 13,2 12,9 12,9 12,6 12,5 12,4 12,4 12,3 12,3 13,5 13,2 13,1 13,0 13,0 13,0 13,213,4 11,0 Data: Poland s CSO 2012 I I-II I-III I-IV I-V I-VI I-VII I-VIII I-IX I-X I-XI I-XII 2013 I * Ministry of Labour and Social Policy I-II I-III I-IV I-V I-VI I-VII I-VIII I-IX I-X I-XI I-XII* January-November 2013 - Unemployment rate ammounted to 13.2%, in December was higher: 13.4%; - Employment (yoy) amounted to 5.492 thous. and the average wages and salaries in enterprise sector stood at PLN 3.799 (+1.9% yoy in real terms).

Consumer Price Index Monthly in cumulative terms (yoy) 6,0 2012 2013 4,0 4,1 4,3 3,9 4,0 3,6 4,3 4,0 3,8 3,8 3,4 2,8 2,4 2,0 1,7 1,3 1,0 0,8 1,0 0,9 0,9 0,9 1,0 0,9 0,9 1,2 0,0 Data: Poland s CSO 2012 I I-II I-III I-IV I-V I-VI I-VII I-VIII I-IX I-X I-XI I-XII 2013 I * MoE forecast I-II I-III I-IV I-V I-VI I-VII I-VIII I-IX I-X I-XI I-XII* January-November 2013 - Consumer prices rose by 0.9%; - Prices growth was driven by a higher dynamics of food and non-alcoholic beverages prices (by 3.5%).

73 781 88 156 89 378 101 539 109 584 125 645 138 785 164 172 136 641 149 570 171 860 159 758 178 063 190 247 212 331 184 661 198 463 187 313 189 468 210 479 Poland's Economic Performance Nominal trade value Poland 2004 2013 (commodities; in USD mn) 250 000 200 000 Exports Imports Data: Poland s CSO * estimates 150 000 100 000 50 000 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 I-XI 2013*

Poland s export main partners (I-XI 2013) Germany 47,048 USD mn United Kingdom 12,290 USD mn Czech Republic 11,553 USD mn France 10,543 USD mn Russia 10,025 USD mn

Poland s imports main partners (I-XI 2013) Germany 40,783 USD mn Russia 23,291 USD mn Italy 9,814 USD mn Netherlands 7,281 USD mn China 17,891 USD mn

USD bn Poland s Economic Performance Foreign direct Investment in Poland 250 200 150 Data: NBP Foreign Direct Investments in Poland 215,6 185,2 178,4 164,3 203,1 235,1 100 125,8 86,8 90,9 50 48,3 57,9 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 - Main foreign investors in Poland are European Union countries. - At the end of 2013 FDI inward stock accounted to USD 224,3 bn. - According to NBP data for 2012, companies from Germany, Netherlands and France are the biggest foreign investors in Poland.

mln EUR Poland s Economic Performance Bilateral trade Poland and the Netherlands - The value of trade between Poland and the Netherlands has tripled in the course of the last decade from 4,2 ml in 2003 to 12,4 ml in 2012. - For the last 10 years the Netherlands has been one of the 10 main trade partners of Poland. In 2012 the Netherlands was the 8th trade partner of Poland. Bilateral trade Poland and the Netherlands 2003-2013 14.000,0 EUR 12.000,0 EUR 10.000,0 EUR 8.000,0 EUR 6.000,0 EUR 4.000,0 EUR 2.000,0 EUR 0,0 EUR 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 (5 m-cy) Eksport Import Obroty

Bilateral trade Poland and the Netherlands - The bilateral trade between Poland and the Netherlands was highest in 2012 (3,89% of total Polish international trade). As a result of the global financial crisis, in 2009 bilateral trade between the Netherlands and Poland experienced a decrease. - After the year of malaise, in 2010 a strong recovery and recapture in bilateral trade can be observed as its value was higher than in 2008. 350% The dynamics of trade between Poland and the Netherlands 300% 250% 200% 150% 100% 50% 0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

mln EUR Poland s Economic Performance Bilateral trade Poland and the Netherlands - Except for 2007 and 2008, for the last 10 years the bilateral trade between Poland and the Netherlands has been rather balanced with slightly higher value of Polish exports. In first quart of 2014, the balance of trade was positive for Poland and amounted to 177 ml. - Goods dominating the bilateral trade in terms of value in 2012: - Export from Poland to the Netherlands (in ml): petroleum oils (801), electronic machines (409), vessels not being used to sail (220), furniture (177), radio and TV sets (169), motor vehicles (145), beef (120). - Export from the Netherlands to Poland (in ml) : integrated circuits (595), electronic machines (372), tractors (331), medicines (223), polymers of ethylene (146), pork (123) vessels for the transport of persons or goods (108). 500,0 EUR 400,0 EUR 300,0 EUR 200,0 EUR 100,0 EUR 0,0 EUR -100,0 EUR -200,0 EUR -300,0 EUR Balance of trade: Poland with the Netherlands 2003-2013 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 (5 m-cy)

Polish furniture and fashion industry Poland is a global furniture powerhouse, as 9 out of 10 products made in this country end up in houses and gardens of clients around the world. The Polish furniture industry consists of around 6000 companies. Furniture manufacturers employ around 130 000 employees. The Netherlands is one of the markets, where clothes and textiles manufactured in Poland are popular. The Polish quality of workmanship has been recognized by fashion houses like Escada, Hugo Boss and Valentino. The biggest purchaser of products of the Polish light industry are global corporations commercial networks distributing domestic goods to markets throughout the world. Cooperation with Polish manufacturers guarantees that the garments you sell are producedd according to European standard.

Project co-financed by the European Union from European Regional Development Fund