POLAND

Strong stimulus measures should help to cope with the Covid-19 crisis

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MEDIUM RISK for enterprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

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GDP USD586bn (World ranking 21, World Bank 2018)
Population 38mn (World ranking 37, World Bank 2018)
Form of state Republic
Head of government Mateusz MORAWIECKI (Prime Minister)
Next elections 2023, legislative
  • EU membership
  • Diversified sectoral external trade structure
  • Robust domestic demand
  • Banking sector resilient overall
  • Solid track record of low inflation
  • Strong business environment overall
  • Political and policy uncertainties
  • Slow structural reform progress
  • Pro-cyclical fiscal stimulus in recent years
  • Non-diversified regional external trade structure
  • High external debt burden

Trade structure by destination/origin

(% of total)

Exports Rank Imports
Germany 25%
1
26% Germany
Czech Republic 7%
2
10% China
United Kingdom 6%
3
5% Italy
France 5%
4
5% Russia
Italy 5%
5
5% Netherlands

Trade structure by product

(% of total)

Exports Rank Imports
Vehicles Components 6%
1
5% Plastic Articles
Furniture 5%
2
5% Telecommunications Equipment
Electrical Apparatus 5%
3
4% Crude Oil
Engines 5%
4
4% Miscellaneous Hardware
Miscellaneous Hardware 4%
5
4% Electrical Apparatus
Payment terms and late payment interest are regulated in accordance with applicable EU rules; however the standards put in place are among the most lenient in Europe. As a result, DSO remains excessive at around 69 days.

  • Low

  • Medium

  • Sensitive

  • High

  • Payments

  • Court proceedings

  • Insolvency proceedings

  • The payment behavior of domestic firms is generally reasonable, with the average DSO at 58 days. Domestic regulations on late payments are more demanding than EU standards while, the government has recently endeavored to adopt new reporting principles and access to data has improved.
  • Amicable and pre-legal collection process are fairly efficient in Poland, especially when a settlement is authenticated by a notary, and can be enforced through fast-track proceedings. Legal action can end up taking a long time, but are quite reliable.
  • Collecting debt from insolvent debtorsis a challenging task and, although debt renegotiation mechanisms have been set up, they are rarely relied upon.

Contact

Contact Euler Hermes

Economic Research Team

research@eulerhermes.com

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