Poland benefited from the difficult but effective introduction of truly market-driven mechanisms into the economy and became the first country in the region to rebound from transformational recession and exceed GDP levels seen before postcommunist reforms. Poland's GDP was 20 percent larger in 1999 than in 1989. The changes introduced have not only put Poland on the path to growth but also made its economy strong enough to sustain positive long-term trends in the more demanding external environment. Poland's resilience can be attributed mainly to its balanced and consistent macroeconomic policy, structural reforms, and relatively strong and transparent financial system. By 2003, the general government's budget will be balanced and the inflation rate will drop below 4 percent.
International institutions offer a positive outlook for the Polish economy.
For 2000 and 2001, the European Commission expects Poland to be ng the fastest-growing countries that are candidates for EU membership. The Economist Intelligence Unit's projections up to 2004 provide for Polish GDP growth of about 5 percent annually, fueled primarily by exports and investments. In the coming decade, Poland hopes to benefit from increasing globalization and liberalization. It will be increasingly integrated with the world economy and exposed to the external economic environment, which will create both opportunities and risks. The changed environment allows for a more efficient allocation of resources while providing the growing Polish economy with the capital it urgently needs to close the gap between investment and domestic savings.