Market of the Month – Poland
Favorable Growth Rate, Stable Economy and Central Geographical Location
Market Opportunities and Best Prospects
European Business Development Conference, Warsaw, Poland, April 20-22, 2009
The United States and Poland enjoy a particularly close relationship which has fostered strategic and commercial cooperation. With close to 39 million people and a dynamic market economy, Poland offers substantial opportunities for U.S. business. Poland’s 2008 gross domestic product (GDP) is estimated at $420 billion. With multiple major cities, Poland is the largest market in Central and Eastern Europe.
As a member of the European Union (EU) since 2004, one large opportunity for U.S. business is the potential to access up to 67 billion Euros in EU funds earmarked for Poland through 2012. These funds will focus on developing infrastructure, environmental remediation and green technologies, clean energy, new production technologies and the latest information and communication technologies.
As a NATO member since 1999, the U.S. – Poland defense relationship is significant and growing. There are a variety of opportunities to help the Polish armed forces upgrade and modernize a range of weapons systems, logistic capabilities and training.
Map Showing Poland’s Position in Europe
Favorable Growth Rate, Stable Economy and Central Geographical Location
Poland is a highly favorable place for trade and investment despite the deceleration taking place in global markets. Poland has enjoyed nearly 18 straight years of economic growth, with an increase of over six percent in 2007.
Poland’s stable economy and strong financial system stand out in sharp contrast to many other EU economies. In addition, the economy will be bolstered by new stringent financial regulations as Poland readies itself for adopting the Euro in the next few years.
Poland’s accession into the EU in 2004 and its entrance into the European-wide free transit zone (Schengen) in 2007 have eliminated all border checks along intra-EU frontiers. With a geographical location in the heart of Europe, Poland is the ideal location for doing business with the entire European continent.
Although Poland has boasted positive growth for the last 18 years, the country remains one of the EU’s lesser developed countries with limited individual purchasing capacity. In addition, Poland remains saddled with an outdated road and air transportation network. For U.S. companies, this increases the costs of doing business, limits ready access to markets within Poland and impacts the country’s potential as a regional distribution hub.
Market Opportunities and Best Prospects
U.S. exporters have found considerable success targeting competitive niches, using effective market entry strategies and diligently following up with marketing and sales support.
While the U.S. share of Poland’s import market is only three percent, with a talented labor force, wage rates among the lowest in the EU, excellent regional location and a sizeable market, Poland will continue to attract substantial new private investment for years to come. Due to the high education levels and language aptitudes of its people, Poland has also emerged as a leading regional hub for business processing centers, including call centers, back-office hubs and tech and research centers. Incentives are offered at the national and municipal levels to stimulate inbound investment.
The U.S. Commercial Service has identified the following best prospects sectors:
 | Automobile Parts and Components |
| Defense |
| Safety and Security |
| Computer Services |
| Computer Software |
| Computer and Peripherals |
| Construction Materials and Equipment |
| Water and Wastewater Treatment Equipment |
| Plastics Processing |
| Cosmetics |
The entire staff of the U.S. Commercial Service in Warsaw stands ready to assist U.S. firms in achieving success in the Polish market. We encourage you to contact us and explore the best way to partner as you commence or expand your business activities in Poland.
Warsaw at Night
The Polish market is characterized by wide population dispersion, with 25 percent living in rural areas and urban dwellers spread among a number of cities, including Warsaw and Lodz in the center of the country, Krakow in the south, Wroclaw and Poznan in the west, Gdansk and Szczecin in the north and Lublin in the southeast. Urban consumers generally have greater purchasing power than their rural counterparts.
Communication in Polish is recommended in order to elicit prompt responses to offers and inquiries and to facilitate negotiations. Poland’s communication network is relatively well-developed and email communications and Web site offerings are an increasingly effective means of reaching local buyers. Pricing is the most critical factor in positioning a product or service for sale in Poland. Access to capital is difficult for most Polish firms and business transactions are typically self-financed. U.S. firms that can arrange financing will have a competitive edge.
Personal contact with the customer is critical and final purchasing decisions typically require a face-to-face meeting. Success in this market normally requires an in-country presence such as an agent, distributor or representative office.
European Business Development Conference, Warsaw, Poland, April 20-22, 2009
For U.S. companies that are ready to explore in more detail what the European market has to offer, the U.S. Commercial Service presents Trade Winds III, a Pan-European Business Forum in Warsaw, Poland on April 20-22, 2009.
This program will offer attendees the opportunity for one-on-one client consultations with senior commercial officers representing opportunities from 27 Western, Central and Eastern European markets. You can also schedule a full day of business-to-business meetings with prospective partners from Poland. By participating in this event, your firm has the chance to make or increase sales to this growing region.
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| Area: Total: 312,685 sq km (slightly smaller than New Mexico) |
| Border countries: Belarus, Czech Republic, Germany, Lithuania, Russia (Kaliningrad Oblast), Slovakia, and Ukraine |
| Coastline: 491 km |
| Climate: Temperate with cold, cloudy, moderately severe winters with frequent precipitation; mild summers with frequent showers and thundershowers |
| Terrain: Mostly flat plain; mountains along southern border |
| Natural Resources: Coal, sulfur, copper, natural gas, silver, lead, salt, arable land |
| Land use: Arable land: 47 percent |
| Population: 38,500,696 (July 2008 estimate) |
| Languages: Polish (97.8 percent), other and unspecified 2.2 percent |
| Currency: Zloty (PLN) |
| Exchange Rate: Zlotys (PLN) per U.S. dollar – 3.00 (2008), 2.81 (2007), 3.1032 (2006), 3.2355 (2005), 3.6576 (2004), 3.8891 (2003) |
| GDP (Purchasing power parity): $623.1 billion (2007 estimated) |
| GDP (Official exchange rate): $420.3 billion (2007 estimated) |
| GDP (Real Growth Rate): 6.6 percent (2007 estimate) |
| GDP Per Capita: $16,200 (2007 estimate) |
| GDP by Sector: |
| Labor Force: 16.86 million (2007 estimate) |
| Government: Republic |
| Head of State: President Lech Kaczynski (since 23 December 2005) |
| Head of Government: Prime Minister Donald Tusk (since 16 November 2007) |
Map of Poland
Plan your market entry the right way. Use U.S. Commercial Service market research to learn about your product’s potential in Poland, the best prospects for success and the market’s business practices before you export. For more information, visit the Market Research Library.
In addition to obtaining U.S. Commercial Service market research, you can visit the following organizations’ Web sites to learn more about Poland:
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