Economy

Economic Survey of Poland 2018

 

 

Executive summary, Assessment and recommendations, Overview

 

Download the presentation, PDF

 

Towards an innovative and inclusive economy in Poland, Blog Post

Child benefits and female labour supply – the case of PolandBlog Post

  

Poland: Build on current economic strength to innovate and invest in skills and infrastructure, Press release

 

OECD zachęca Polskę do wykorzystania obecnej siły gospodarczej do rozwoju innowacji oraz inwestycji w podnoszenie kompetencji i infrastrukturę

 

 

 

Growth is strong, and the labour market is booming

Economic growth remains strong. Rising social transfers and a booming labour market are underpinning rapid consumption growth. The unemployment rate is at a record low level, labour shortages are spreading, and there are early signs of accelerating wages. The labour market is expected to tighten further, leading to somewhat fasterwage and price inflation. After a severe contraction in 2016, investment is projected to recover, driven by faster disbursements of EU structural funds, capacity constraints and low real interest rates.

New public benefits have helped to bring down poverty

Unlike in many other countries poverty and income inequality have fallen, and large family benefits introduced in 2016 have helped to bring down child poverty further. They are also meant to promote fertility in the context of very rapid ageing. On the other hand, there is a risk that the benefits might induce less-skilled women to leave the labour market for longer after childbirth, shortening their contribution periods to pensions. Together with the recent lowering of the retirement age back to only 60 for women, this will heighten risks of old-age poverty. The government is working to improve currently limited access to affordable childcare services. Insufficient institutional care for the elderly is another barrier to female employment and improved well-being for seniors.

Raising Poland’s capacity to innovate would ensure continued convergence to higher living standards

Poland’s income convergence has mainly resulted from efficiency gains thanks to sectoral restructuring and foreign technology absorption. As its labour productivity is still 40% belowthe OECD average, Poland now needs to strengthen its technology adoption and own innovation capacity. Research and development (R&D) investment is weak as is innovation activity, in particular in small and medium-sized enterprises (SMEs). Infrastructure is still a bottleneck, and there is much room to improve its environmental impact. In its Strategy for Responsible Development the government plans higher R&D tax incentives along with increased public support for innovation in SMEs, venture capital market and infrastructure development, largely dependent on EU structural funds financing.

S‌‌‌ee also:

Poland: Economic forecast

Poland: Structural reform priorities

Poland: Blog Posts

OECD Economic Surveys: Poland 2018

 

 

For further information please contact the Poland Desk at the OECD Economics Department.

The OECD Secretariat's report was prepared by Nicola Brandt, Antoine Goujard and Pierre Guérin, under the supervision of Peter Jarrett. Research assistance was provided by Patrizio Sicari and editorial assistance by Sylvie Ricordeau.

 

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