Economic growth and inflation
In 2014 the economic activity in Poland continued to increase. The Gross Domestic Product (GDP)
grew in real terms by 3.4% and it was a stronger growth than in the previous years (1.7% in 2013 and 1.8 in 2012). Inflation leveled in 2014 at 0.0% (i.e. the prices did not increase). it was the lowest inflation level ever reported during the 25 years (1989-2014) of market economy in Poland. Moreover, in all months of the second half of 2014 the prices of goods and services were lower than in the corresponding months of 2013. In the aftermath of geopolitical tensions in the region Poland’s exports to countries of Central and Eastern Europe in 2014 decreased by 17.3%, including drop of exports to Russia by 14.0%.
Labour market and income situation of households
The process of improving conditions on the Polish labour market, that begun in the second half of 2013 continued. The unemployment index (for 15-64 aged persons) rose by 1.7pp to the level of 61.7% and the unemployment rate decreased to the level of 9.0%.
The improvement on the labour market led to a general betterment in the situation of households, revealed by a real income increase of 3.2%, and a fall in the share of household fixed expenditures.
Public Finanses
The General Government sector deficit came out at 3.2% of the GDP. It exceeded the reference value from Maastricht (3.0 of the GDP) and was higher than in the EU as a whole (2.9% of the GDP in 2014). The deficit was however lower in comparison with the previous year when it reached 4.0% of the GDP.
The sector’s debt was at 50.1% of the GDP, which was lower by 5.6 pp in comparison with the previous year. Its average level for the EU was conspicuously higher reaching 86.8% of the GDP.
stat.gov.pl
