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External Balance and Economic Growth




In the aftermath of the transformation process, Poland has become an open, market economy. The transformation has had tangible impact of the economic growth and balance of payments. As one of its implications of the transformation, a gap between investments and savings has developed. Consequently, the balance of payments has recorded chronic deficit, which has been financed by foreign savings.


The paper argues that the chronic deficit in the balance of payments will be maintained throughout the entire process of integration of Poland with the European Union. The paper also discusses long-term issues concerning external balance and economic growth. The discussion is based on theoretical fundamental of various economic schools as well as practical lessons. It forms the basis for conclusions concerning the economic policy.