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Poland SWOT Analysis: 4 Alarming Setbacks

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It’s no secret that the world is becoming crowded and noisy with each passing day, which is why words like a vacation, relaxation, etc. are being used more and more. If you are looking for a reprieve, look no further, Poland is the destination of your dreams. You can hike up mountains, wander through the woods, and take leisurely strolls through the streets, try out uniquely delicious food and enjoy the hospitality of the locals. There are, however, a few setbacks that will be addressed in this Poland SWOT analysis to see how it is faring in the current scenario.  

Strengths

Strong Economy

Poland is doing quite well with respect to its economy, in fact, it is amongst the top ten economic players within the European Union. It was also one of the few countries that were minimally affected by the financial catastrophe in 2008 and have managed to have a stable economic development.

It surely does not hurt to be close to European markets, to have a skilled and affordable workforce, a population that consumes locally produced products, and an economic structure that comprises agricultural, manufacturing, and the services sector.

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Culturally/Historically Rich

A factor that may appeal to all the history buffs out there, is Poland’s interesting (and rather violent) history, full of invasions and communist influence.

In fact, the very essence of that influence can still be felt by looking at the buildings throughout the country. One of the most prominent of such architectural wonders is “The Palace of Culture and Science” which is also the highest building in all of Poland.

In addition to that, the country comprises 14 UNESCO World Heritage Sites including Wieliczka salt mine, Auschwitz-Birkenau Camps, etc.

Tourism

For people who want to escape their troubles, take in scenic wonders, and get lost in the beauty of nature, Poland’s diverse geography offers various opportunities.

You can visit salt mines, national parks, walk through one of the oldest market places, or visit natural wonders such as the crooked forest! If you love history, you should definitely add Poland to your bucket list. With historic sites such as castles, concentration camps, museums, etc. Poland has a lot of historically significant options to explore.

Poland’s tourism industry generated a revenue of PLN 124.6 billion in 2018  which is a marked 6.8 percent increase compared to the previous year. The number of tourists coming into the country increased by 7.5 percent which was the highest ever for Poland.  

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Weaknesses

COVID-19

It is no secret that the COVID-19 pandemic wreaked havoc throughout the world, and impacted all aspects of life. Before the pandemic, the growth of Poland’s economy was considered to be one of the highest within the European Union, however, COVID-19 put a stop to that or rather hit the brakes so as to decrease the speed of development.

If the pandemic continues to stretch out, it will put pressure on the healthcare sector, harm the education sector, negatively impact tourism, make investments riskier and affect the way people make purchases, all of this will negatively impact Poland’s economic stability.

 In fact, the GDP is expected to decrease by a whopping 4.2 percent during 2020.

Labor Market

Poland is not doing too well when it comes to its workforce because the new policies that have been enforced, squeeze the market by allowing fewer women to work, decreasing the age at which one can retire, and preventing immigrants from working altogether.

Technology

Technology may well be what drives success in the modern world, however, Poland isn’t nearly as technologically advanced as it should be nor does it invest in tech-savvy people who can operate the technology that it does or may invest in.

Economic Inequality

As Poland’s economic status rises within the European Union, so does the economic inequality within its borders. The bridge between the well off and the economically deprived extends with every economic development.  

Opportunities

Population

Poland has a population of 38 million people which makes it an amazing investment opportunity for people looking for newer markets to invest in and gain from.

In addition to that, the fact that Poland’s existing workforce is educated serves to greatly interest investors who consider the education level of a country’s workforce to reflect its economic potential.

Newer investments mean there will be more projects which will require labor that can help solve the country’s issue of unemployment.

Technology Advancement

Poland’s government can benefit from evolving and updating its current policies to adopt technology in order to increase the pace of economic development.

Efforts in the research and development sector can also go a long way in helping Poland hold its ground within the constantly changing marketplace.

Investment and Export

As part of its initiative to use more environmentally friendly fuel sources in light of global concerns for sustainability, Poland may invest in newer fuel sources and invite investors from other countries to do the same.       

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Threats

Economic Impact

While Poland is economically sound, its economic health is expected to decline as the COVID-19 pandemic continues.

Unless it can manage to keep up with the other countries, Poland may well lose its position as one of the top ten countries in the European Union, especially if it does not invest in newer technologies that increase efficiency and place a lesser burden on the workforce.

The current labor policies need to be revisited if Poland expects to have any hope of competing internationally.

Price Competitiveness

While Poland could initially gain a lot from offering the best prices due to the availability of cheap and qualified labor, it can no longer do so because of the new policies that limit the number of people who can become a part of the workforce.

If Poland does not revisit its labor policies and devise strategies to deal with the situation, it might lose one of its greatest competitive advantages, thereby further contributing to its economic decline.

Other countries, who are more technologically advanced and have a relatively robust workforce can sweep in and take over. 

Poland SWOT Analysis: Bottom Line

So, while Poland is, without a doubt, a wonderful tourist destination, it has suffered a great deal because of the COVID-19 pandemic.

 It is clearly evident that while Poland’s economic performance is by no means alarming, it does need to rethink its labor and technological investment policies in order to maintain its competitive advantage and remain relevant in the modern economic landscape.