Poland is one of the fastest developing countries in Central and East Europe. Peter Petty, Delegate of the Foreign Trade Support Fund discusses the perspective development.

What is the position of local experts on Polish economy?

Realistic. According to the experts from the Centre for Strategic Stidues in Warsaw, the economic growth created necessary quality and structural changes in economy: labour productivity keeps on increasing, the same applies to energy and material requirements of production leading to greater competitiveness of the economy, although it remains insufficient in comparison with developed countries. The private sector currently employs 70% of the total labour force and produces 65-70% of GDP. Small and medium size enterprises increased five times since 1992 employing 55% of the labour force. The Polish economist have attributed the declining speed of growth of the Polish economy to marketing barriers. Local and particularly consumer demand has declined in Poland that is not balanced by the export. The financial situation and company development have worsened and it applies to the growth of wages.

What is the forecast?

It is generally positive, because of high increase of investment whose dynamics is three times the GDP growth. Foreign investment has joined the local investment. The investment in 1998 reached some USD 20md. Inflation just below 10% has reached single digit for the first time since 1989. It is estimated to drop further to 8-8.5% in 1999 with GDP growth at 5.4%. The National Bank of Poland has a medium term forecast suggesting the inflation not to exceed 3% by 2003.

That seems like a good environment for your operation.

Certainly. I have been in the post only since mid-November. I had to spend a lot of time to build up the delegation. Yet I had the opportunity to work on the 7th Economic Forum Slovakia-Poland-Czech Republic connected with a meeting of businesses held in late November in Zilina. The event was organised by the Zilina branch of the Slovak Chamber of Trade and industry. In 1998 in Krakow I attended a meeting of businesses from the Kosice and Krakow regions organsied by their local changers of commerce. It gave me a lot of contacts and ideas. Following the invitation by the Commercial Attache at the Polish Embassy in Bratislava I attended a discussion on further development of bilateral trade cooperation attended by representatives of the Ministry of Economy SR, Polish Embassy in Bratislava and businesses from both countries.

The start seems to have been quite exciting.

When looking back at the short period of my work in Warsaw, I find it interesting. Cooperation with the embassy is very good. The FPZO, the Ministry of Economy SR, the Foreign Office and the embassies comply with the conditions of the contract. I also enjoy cooperation with the Slovak-Polish, Zilina and Kosice chambers of commerce, Polish Commercial Department in Bratislava and businesses from Slovakia coming to the Embassy in Warsaw.

What are your short-term aims?

I have to establish contacts with Slovak and Polish business associations, support sale of Slovak products in Poland, provide marketing services for the associations in both countries. I want to assist Slovak business missions in their preparation and organisation, their participation at fairs and exhibits, contact fora and seminars. I should also search for new market opportunities for the Slovaks, develop a database of current export offer of the Slovak producers and of the local demand, collect and process information on local economic development analyse the local market.

Poland is not starting on green field. What is the state of trade cooperation?

Neighbouring nature of the two countries, linguistic proximity, CEFTA membership, the desire to join the EU and traditional political, economic and cultural co-operation have set good conditions for bilateral trade. Trade in 1998 reached some USD 900m, which is expected to exceed USD 1md in 1999. The trade dynamics grow, while the Polish trade balance with Slovakia is passive.

What id the dominant export article?

Slovakia exports industrial products, chemicals, engines, transport equipment, malt, rolled products, and mineral oil. We see reserve in the work of regions of the Tatras and the Carpathians, support development of joint banks, opening of branches of the Slovak banks in Poland and vice versa, development of road and railroad border passes, completion of transport corridor North-South, co-operation in energy, etc. That should support further trade.

How about import?

Poland exports to Slovakia coal, copper and related products, hexanolactane, rolled products, oil from the crude oil. The Poles see reserves in export of fuel and grease, industrial products, chemicals and related products, engines and transport equipment, foodstuffs, and live animals. They want to expand cooperation within CEFTA by liberalisation of labour force and services and free movement of capital. Regional policy and border co-operation are important. In 1998 we registered 200 Slovak-Polish joint ventures in Slovakia, of which 90% operate with low equity and limited capital. There is a lot more to improve the trade co-operation. I am convinced that the FPZO delegation can help it.

Slovak Trade FORUM