Key developments and challenges

Further progress has been made with the privatisation programme, though reducing state involvement in the economy remains an important challenge, especially in the energy and natural resources sectors.

An inefficient power sector continues to hold back growth and also means that European Union (EU) environmental standards are unlikely to be met. Additional investment is necessary to proceed with the restructuring and full privatisation of the larger power groups.

While Poland’s stock market is among the largest in the region, liquidity is low and the private bond market remains in its infancy. A new trading platform represents important progress, but a further easing of constraints on issuance and investment by institutional investors is necessary to promote the development of financial markets.