|GDP, current US$ billion||661.7|
|GDP per capita, current US$||17,487|
|Life Expectancy at Birth, years||76.6|
Poland’s well-diversified economy has proven to be one of the most resilient economies in the EU, recovering strongly in 2021 after a relatively small contraction in GDP of 2.2 percent in 2020. A sound macroeconomic framework, effective absorption of EU investment funds, a sound financial sector, better access to long-term credit, and access to European labor markets have supported long-term inclusive growth and poverty reduction.
Strong domestic labor markets and increases in median and bottom 40 real incomes have supported private consumption. The unprecedented policy response to mitigate the impacts of the COVID-19 crisis and high inflation have narrowed the available policy space. Increased spending and tax expenditure efficiency is needed to rebuild fiscal buffers, accommodate higher spending on health, defense, the green transition, and to prepare for the growing fiscal burden arising from aging.
Over the medium term, a key challenge is tightening labor supply, made more acute by the aging population. The large influx of displaced people from Ukraine could help address tightness in the labor market. Achieving decarbonization commitments is another challenge. Institutional strengthening is needed for sustained and inclusive growth.
Last Updated: Oct 12, 2022