This paper reviews economic developments in Poland during 1995-96. The focus is on macroeconomic developments in the real, fiscal, monetary, and external sectors, respectively, while structural policies are also reviewed. The paper examines the Polish tax system, the exchange and trade system, and poverty. It highlights that in 1996, Poland experienced its fifth consecutive year of economic growth. From late 1993 to about mid-1995, inflation remained in the 30-35 percent range as large external surpluses weakened monetary control.