With estimated GDP of €270 billion in 2005, Poland has the largest economy of the new EU members. It is fully integrated with the EU-25, which is the destination for 80% of its exports. Robust export growth in 2004 has benefited from easier access to both EU and non-EU markets, as Poland joined the EU in May 2004. The remarkable performance of exports also reflects the competitiveness gains achieved in recent years due to low wage increases, high productivity gains, and the depreciation of the zloty in 2000-2002. Polish exporters' efforts to adjust costs and to diversify export markets in the face of sluggish demand from the EU have also contributed to the robust export performance. Gross external borrowing requirements
