OECD on Poland’s economic growth
Organization for Economic Co-operation and Development published findings of its 2018 economic survey on Poland. In the document, the organisation looks at the country’s economic status and development in such areas as investment, labour market, state deficit and overall GDP performance. The result is an overview of the current condition of Poland in terms of state economy and the likely positive and negative outcomes of the current state of affairs.
The intergovernmental organisations’ experts call Polish GDP growth, which recently exceeded four percent, strong. The living standards of the Polish population have been rising for many years. Today, the situation on the job market is better than ever before. Unemployment is record-low, and wages are rising along with consumer spending. Individual consumption is accelerated due to a big economic backup in the form of child benefits that Polish parents have been receiving for two years. The benefits are cited as the cause of a sharp drop in child poverty in the country.
On a less positive note, OECD stresses the negative effects of demographic changes that today may not be that visible but will strongly impact the state budget as well as the living standards of today’s working population. Pensioners, whose numbers are booming, will stop their professional careers early due to low retirement age restrictions. Early retirement means low pension benefits and higher risk of poverty in the old age. Polish politicians are urged to take rapid action.
The international organisation also calls for more funding for education (especially for vocational training) and research. Government incentives for R&D are described as “insufficient”. The good situation on the labour market translates into labour shortages for Polish businesses. Labour productivity is below the OECD average. After very good 2017 and 2018, GDP growth figures are expected to decline in the upcoming years.