|GDP, current US$ billion||697.2|
|GDP per capita, current US$||17,740.7|
|Life Expectancy at Birth, years||76.6|
The well-diversified Polish economy has proven to be one of the most resilient in the EU, recovering robustly after a relatively small contraction in GDP of 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 higher median and bottom 40 real incomes have supported private consumption. With an improving business environment, Poland integrated well into regional value chains (RVCs). Higher private investment, an improved innovation ecosystem, and further upgrading of RVCs could boost productivity and growth.
The unprecedented policy response to mitigate the impacts of the COVID crisis and high inflation have, nevertheless, narrowed the available policy space. Over the medium term, a key challenge is a tightening labor supply made more acute by the aging population. The large influx of displaced people from Ukraine could help address at least temporarily the labor market tightness. Achieving decarbonization commitments is another challenge. Institutional strengthening is also needed for sustained and inclusive growth and for narrowing regional disparities.
Last Updated: Apr 12, 2023