|GDP, current US$ billion||594.2|
|GDP per capita, current US$||15,654.9|
|Life Expectancy at Birth, years (2017)||77.6|
The well-diversified Polish economy is among Europe’s least affected by the COVID-19 pandemic. Nevertheless, GDP declined by 2.7 percent in 2020, the first output contraction in over 20 years. Before the pandemic, prudent macroeconomic policies, effective absorption of European Union (EU) investment funds, a sound financial sector, and better access to long-term credit fed into inclusive growth and poverty reduction. Real wage growth and a range of demographically targeted social programs led to robust consumption growth until early 2020. With an improving business environment, Poland integrated well into regional value chains.
A key challenge over the short term is to continue supporting the sectors most affected by the pandemic while ensuring public debt sustainability. The unprecedented policy response to the COVID crisis has narrowed the available fiscal space. Increased spending efficiency is needed to rebuild fiscal buffers for future countercyclical policies and to prepare for the growing fiscal burden arising from the increase in the number of elderly people.
Over the medium term, a key challenge to sustained growth is a tightening labor supply that has been made more acute by the aging population. Achieving decarbonization commitments is another challenge. Strengthening institutions at both the national and subnational levels is a necessary ingredient to sustained and inclusive growth and the narrowing of regional disparities.
Last Updated: Apr 14, 2021