Overall Score: 68.6 World Rank: 42
Poland has rights for the protection and disposal of personal property and independent courts, but has yet to find a way to combat political corruption. The courts are known to take awhile to hear cases, and prosecutors are probably subject to political pressure, making it hard to investigate those accused of corruption.
Poland joined NATO in 1999 and the European Union in 2004. While low investment rates in agriculture have made them not competitive in food in global markets, Poland is among the top European countries in automotive, pharmaceutical, aviation, machinery and steel. Recently, Poland's financial sector has been experiencing growth.
Limits on Government Regulation
Poland has been working on removing regulation in order to make it easier to start a business, but it still takes about a month, even though the cost of licensing has decreased. Labor codes in Poland have hindered job growth for awhile. In 2015, the government will cut $780 million in renewable energy to attempt and reduce power costs. Poland has mostly free trade, especially among it's NATO and EU partners.
Poland has a flexible exchange rate, an IMF credit line, access to international markets, and healthy economic policy. Due to this, Poland was the only European country to experience economic growth in 2009, after the credit crisis that swept through Europe. Recent double digit gains in financial freedom vaulted Poland to its highest Economic Freedom score ever.
Low Tax Rates
Poland's highest individual income tax rate is 32%, and the top corporate tax rate sits at 19%. Poland's public spending equals 42% of domestic production, while public debt is equivalent to 57% of the GDP. 20.1% of tax revenue makes up the domestic income. Some other taxes Poland has include a value-added tax as well as a property tax, making them fairly well balanced in that regard.
As a member of the European Union, Poland has a standard 1% tariff rate. However, there are few other non-tariff barriers, and Poland is active in both domestic and foreign trade. They are known to treat both domestic and foreign traders equally under law. Recently, Poland has become more and more free to trade as they begin to grow financially and economically as a nation.
Poland: The Capital Of Catching Up | Growth Of Polish Economy
Poland has recently begun to catch up to the rest of the European powerhouse's economies. With higher incomes and a better GDP, the outlook is bright.