10/3/2014 - Poland’s economic performance has been impressive over the past 15 years, but further reforms are now needed to put the economy firmly back on track for stronger and sustainable growth, according to the OECD’s latest Economic Survey of Poland.
The Survey, presented in Warsaw by OECD Secretary-General Angel Gurría and Poland's Deputy Prime Minister and Minister of Economy Janusz Piechociński, highlights the need for measures tomake the labour market work better, strengthen product market competition, overcome strong demographic headwinds and boost both short and longer-term economic prospects.
“Poland has made considerable progress in transforming the structure of its economy, making it more competitive and bringing about convergence in living standards with other European countries,” Mr Gurríasaid during the launch. “Despite this success, unemployment is still far too high, and restrictive product market regulations continue to hinder economic activity. Reforms are needed for Poland to build on its strong track record and launch itself as an innovation–based economy.”
To boost job creation and bring down Poland’s high unemployment rate, which is hovering around 10%, the OECD says the country should take steps to reduce the deep segmentation of the labour market. This should include making all contracts subject to the same tax and social contribution regime, streamlining legal dismissal procedures and limiting the cumulative duration of temporary contracts.
Better public employment services are also needed to make the labour market more inclusive and get the unemployed back to work. More can also be done to increase women’s participation in the labour market, and additional steps should be taken to keep older workers in jobs.
Product market reform is also essential to strengthen job creation as well as Poland’s economic prospects, the OECD said, pointing to five key areas for action:
An Overview with the main conclusions is accessible in pdf format on the OECD’s web site at http://www.oecd.org/eco/surveys/economic-survey-poland.htm. You are invited to include this Internet link in reports on the Survey.