By then end of 1995, inflation had dropped to 21.6 percent and official unemployment to 14.9 percent, both continuing the positive decreasing trends from previous years. Other important economic trends were positive as well. The government held the line against increased deficit spending, and the ratio of public debt to GDP declined to approximately 60 percent. Foreign reserves soared, and the zloty's small nominal depreciation led to a substantial real appreciation in 1995. Both exports and imports rose 38 percent.
Some problems remain, however.
Progress on privatization and the overhaul of the social insurance system has been slow and uncertain. In 1990 and early 1991, Poland took bold steps to stimulate its private trading sector through an open trade regime with low or suspended tariffs. In 1993, Poland agreed to suspend tariffs on many products for which the U.S. had requested relief, and established tariff rate quotas for computer-related products. The new tariffs raised the 1992 average duty level to 14 percent. The average level in 1994 dipped to 11.8 percent, and in 1995 to 9.4 percent.