|GDP, current US$ billion||580.6|
|GDP per capita, current US$||15,310|
|Life Expectancy at Birth, years (2018)||77.5|
The Polish economy continues to perform strongly. Real GDP growth reached 5.1 percent in 2018, driven by domestic consumption and accelerating investments. Unemployment is below 4 percent, while shared prosperity indicators continue to improve.
The three main challenges ahead for Poland are a shortage of labor in the economy, procyclical government policies encouraged by the political calendar, and adverse global factors.
The shortage of labor will eventually weigh heavily on potential GDP growth and be exacerbated by the early retirement of an increasing share of the workforce. A scarcity of workers could negatively affect production capacity and investment. The problem may be amplified by the possibility that other European Union (EU) countries open their labor markets to workers from Ukraine, who have so far helped Poland mitigate the shortfall in the labor supply.
A dense political calendar, with EU, presidential, and general elections all coming up within one year, has inspired a range of procyclical policies. Proposed measures to increase social benefits, lower tax rates, and inflate the cost of pension payments are expected to put pressure on public finances in the medium term. Due to their irreversible nature, such policies would weigh on Poland’s fiscal position in the coming years.
Last Updated: Apr 11, 2019