Poland falls behind in terms of GDP capita, to become poorest EU member

According to a report recently published by the European Commission, Poland will be the poorest member of the enlarged European Union. Last year Polish GDP per capita, taking into account Purchasing Power Parity (PPP) method, amounted to a mere 39% of the EU average. If one would use the current currency exchange rates, then the figure would further drop to 20%. For the Czech Republic, Hungary and Slovakia the ratio amounted to 60%, 57% and 47% respectively. What is even more worrying is that Poland stopped trying to catch up with the EU average five years ago. The development ratio amounted to 39% in 1999 and since then we were taken over by Estonia and Lithuania. Moreover, the gap between Poland and Latvia decreased from 11% to 4%. According to the European Commission the low pace of economic development is mainly due to structural reasons, such as the disastrous situation in the mining, steel, armament and chemical sectors. (Rzeczpospolita, pp. A1, B1) M.M. This Week in Warsaw Business Journal Lockheed Martin to pilot U.S. investment Telecom market gears up for change VC fund goes green A computer tale: IPO and bankruptcy Fashion labels to float on WSE U.S. – Polish relations Ordynacka - the next famous street?