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Country Analysis Report: Poland, In-depth PESTLE Insights

  • ID: 2507550
  • June 2014
  • Region: Poland
  • 82 pages
  • MarketLine
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Introduction

The strong banking sector has protected the country against the recessionary and financial shocks that other countries faced since 2008. However, the country saw a fall in FDI inflows in 2012, due to economic uncertainty in the euro area. High unemployment is a further problem. Strong trade and financial links to the eurozone expose the economy to volatility in external demand and capital markets.

Features and benefits

- Understand how Poland can be used to plan business investments or market entry through a holistic view of the country.
- Gain an understanding of the political situation in Poland, including key figures in the country and governance indicators.
- Understand customer demographics in Poland through analysis of income distribution and the rural-urban split, as well as healthcare and education.

Highlights

The PESTLE analysis of Poland identifies issues that affect the country's performance using the strengths, weaknesses, opportunities, and threats (SWOT) framework.
The political landscape section discusses the evolution of the political scenario in Poland, as well as the country's economic, social, foreign, and defense READ MORE >

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OVERVIEW
Catalyst
Summary

Key findings

PESTLE highlights

Key fundamentals
KEY FACTS AND GEOGRAPHIC LOCATION
Key facts
Geographic location
PESTLE ANALYSIS
Summary
Political analysis

Overview

Current strengths

Current challenges

Future prospects

Future risks
Economic analysis

Overview

Current strengths

Current challenges

Future risks

Poland has extensive trade links through the German supply chain. According to the IMF, Poland imports upstream goods, which are exported to the German and Italian supply chains as downstream products. This has benefitted Poland as ultimately the exports make their way to fast growing countries such as China. About 70% of Poland's domestic value addition is exported to the European region; a slowdown in these economies could affect Polish exports.

In terms of financial channels, Poland gets around 90% of its foreign direct investment (FDI) from Europe, which constitutes around 36% of GDP. Foreign ownership of Polish sovereign bonds has increased since 2008-09, which has deepened the financial market's integration with the Polish economy. Hence, in an adverse macroeconomic scenario, capital flight from investors could result in a surge in yields for the government bonds, which may make it difficult for the government to refinance or borrow in the open market. Such as scenario was experienced during the summer of 2013 when the yields of Polish bonds surged on the news of the US Fed tapering.

The banks reporting to Bank for International Settlements (BIS) have assets of around 60% of GDP in Poland of which approximately four fifths are assets of foreign European bank subsidiaries. In addition, the assets also include cross-border funding from banks in the European region. The Polish economy has significantly benefited from such close integration; nevertheless, this can pose significant risks from a shift in investor sentiment.
Social analysis

Overview

Current strengths

Current challenges

Future prospects

Future risks
Technological analysis

Overview

Current strengths

Current challenges

Future prospects

Future risks
Legal analysis

Overview

Current strengths

Current challenges

Poland has the highest restrictions on foreign direct investment among the CEE countries, which is likely to act as a deterrent to FDI. More inflow of FDI is needed to increase competitiveness and exports, which contributes to the economic development of the country. However, Poland imposes the most restrictions for FDI in the tertiary sector, followed by the primary sector. Nevertheless, the secondary sector is virtually free of FDI restrictions. The government should endeavor to deregulate the tertiary sector to allow more FDI into the country.

Higher tax wedge

According to the OECD, in 2013, Poland had a higher (one-earner couple, two children) total tax wedge (Income tax, employer and employee social security contributions and pay roll tax as a percentage of labor costs) than the OECD average. The tax burden for a one-earner couple, two children was 29.8% while for OECD it was 26.4% in 2013.

Future prospects

Ease in regulations for starting a business

Future risks
Environmental analysis

Overview

Current strengths

Current challenges

Future prospects

Future risks
POLITICAL LANDSCAPE
Summary
Evolution

Pre-

1985-

2000-
Structure and policies

Key political figures

Structure of government

Key policies
Performance

Governance indicators
Outlook
ECONOMIC LANDSCAPE
Summary
Evolution

1945-

1990-
Structure and policies

Financial system
Performance

GDP and growth rate

Fiscal situation

Current account

Exports and imports

External debt

International investment position

Monetary situation

Employment
Outlook
SOCIAL LANDSCAPE
Summary
Evolution
Structure and policies

[Missing title]

Education
Performance

Healthcare

Education
Outlook
TECHNOLOGICAL LANDSCAPE
Summary
Evolution
Structure and policies

Research and development

Intellectual property

Research and development
Performance

Mobile and internet
Outlook
LEGAL LANDSCAPE
Summary
Evolution
Structure and policies

Judicial system

Tax regulations
Performance

Effectiveness of the legal system
Outlook
ENVIRONMENTAL LANDSCAPE
Summary
Evolution
Structure and policies

Environmental regulations
Performance

Environmental impact
Outlook
APPENDIX
Ask the analyst
Disclaimer

Note: Product cover images may vary from those shown
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Note: Product cover images may vary from those shown

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