Poland Macro Environment (Essay Sample)

Poland Macro environment
1.0 Demographics
1.1 Age distribution
The age structure of Poland is unevenly distributed. It is concentrated on 25-54 years, which accounts for 44.1 % of the national population. 14.6%, 12.3%, 14.5%, and 14.5% of the national population are people aged between 0-14 years, 15-24 years, 55-64 years, and 65 years and over, respectively (Poland age structure, 2013). The population pyramid below illustrates the age and sex structure of Poland’s population.
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Source: (The World Bank, 2013a)
1.2 Income distribution
Poland has an unequal income distribution. This is affirmed by the fact that the gap between high and middle income earning is very high. The fall of communism in Poland in 1990 is instrumental to the substantial increase of income inequality in Poland. According to Brzezinski (2012), the number of people who have benefited from income changes outnumbers the one for those who have lost. In 2010, Poland was ranked at 11th position among the nations with the highest income inequality, expressed by Gini coefficient (Brzezinski, 2012). For instance, the income of richest households of 20th centile was five times less than the income of 80th centile. The diagram below shows the income and consumption inequality in Poland between 1985 and 2009, which was measured by the Gini index.
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Source: (Brzezinski, 2012).
1.3 Population
Poland recorded a population of over 35.54 million last year (2013). This indicates an increase of 1 million people since the recession period (The Economics, 2013). The male population accounts for 48.4% and the rest are female. The current population growth rate is 0.09% (Organisation for Economic Co-operation and Development, 2013). The birth and death rates are 9.88 births and 10.31 deaths per 1000 population respectively (The Economics, 2013). The graph below shows that the population has started to decline, considering that it has dropped from its peak in 1995 and 1996.
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Source: (The Economics, 2013)
1.4 Urban vs. Rural
The urban population of Poland is more than 60.09 of Poland’s total population (World Bank, 2013b). The rest of the population live in rural areas. Additionally, the annual rate of urbanisation change is 0.04% (Organisation for Economic Co-operation and Development, 2011). The charts below show the rural and urban distribution of people in Poland between 2002 and 2012.
Rural population distribution in Poland
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Source: (World Bank, 2013 b)
Urban population distribution in Poland
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Source: (World Bank, 2013c)
2. Economic criteria
2.1 Disposable income
The household disposable income in Poland is 16,234 USD a year (Poland, 2013). This is less than the OECD average of 23,938 USD a year. However, as mentioned earlier, there is a considerable gap between the poorest and richest people in Poland. For instance, the bottom 20% of the population earns nearly five times less than the top 20% of the Poland population (Poland, 2013). Additionally, more than 60% of the Poland citizens aged between 15 and 64 have a paid job (OECD Factbook, 2013). However, in Poland, people work 1929 hours a year, which is more than the OECD average of 1765 hours. Moreover, approximately 8% of employees in Poland work very long hours, which is close to OECD’s average of 9% (OECD Factbook, 2013).
2.2 GDP per capita
Poland’s GDP per capita was last recorded at 18296.52 US dollars in 2012, after being adjusted by purchasing power parity (PPP) (The World Bank, 2012). This is equivalent to 83% of the world’s average. From 1990 until 2012, the GDP per capita PPP in Poland averages 12316.31 USD. A Steady and high GDP per capita indicates that the economy is robust, industry growth is positive and people have more earnings, and therefore they have more disposable income to cater for their expenses. The diagram below illustrates Poland’s GDP per capita PPP as at 2012.
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Source: (OECD Factbook, 2013)
2.3 GDP real growth rate
A report by the Central Statistical Office of Poland (2014), mentions that the Gross Domestic Product (GDP) in Poland has increased by 1.10%, in the first quarter of 2014 compared to the previous quarter in 2013. This is a good implication for investors and people doing business in Poland. The diagram below shows Poland GDP growth rate from 2011 to 2014.
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Source: (Central Statistical Office, 2014)
3.0 Infrastructure
3.1Internet users
The internet usage in Poland has been growing steadily since 1998 to date. In reference to the World Bank report 2010, 65% of Poland’s total population can access the worldwide network, using their network enabled devices. Currently, there are more than 350 licensed Internet Service Providers (ISPs) in Poland (World Bank, 2010). The Polish government also contributes a lot to internet usage by supporting projects related to technological advancements and providing licenses for provision of internet over TV cable networks. There are more than 10,000 commercial websites, and approximately 80% of Poland’s businesses use internet on their daily operations (Galewska, 2011). The chart below shows the continuous trend of internet penetration and use in Poland.
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Source: (World Bank, 2010)
4.0 Local consumption/use
4.1 Consumption of products and services
The pattern of consumption of products and services in Poland provides a good opportunity for investors and current businesses operating in the country. However, it depends with the purchasing power of individuals and target market segments, among other factors considering that the bottom 20% of the population earns nearly five times less than the top 20% of the Poland population (Orenstein, 2014). In 2013, agricultural products such as aquaculture, beverages, and wood products were the most consumed products in Poland (Galewska, 2011). The other businesses that experienced high consumption include transportation 28%, chemicals 27%, metal manufacturing 28%, and machinery 15%, among others (Orenstein, 2014).
5. Political/Legal Environment
5.1 Ease of doing business country rank
Poland is ranked at 45 out of 189 coun...