|GDP, current US$ billion||524.7|
|GDP per capita, current US$||13,817|
|Life Expectancy at Birth, years (2018)||78|
Poland’s economy continues to perform strongly. Real GDP growth is expected to reach 4.7% in 2018, driven by domestic consumption and accelerating investments.
Unemployment at slightly above 4% is the second-lowest rate in the 28-member European Union (EU). Poverty and shared prosperity indicators continue to improve in light of surging private consumption that is supported by a tight labor market and government social programs.
The three main challenges ahead for Poland are a shortage of labor in the economy, a structural weakening in public finances, and the upcoming political calendar.
The shortage of labor will eventually weigh heavily on GDP growth and be exacerbated by the retirement of a significant part of the workforce. A scarcity of workers could negatively affect production capacities and investment, thus heightening pressure on the Government to encourage immigration, which would likely come primarily from Ukraine.
The Government's spending plans, which include increases in social benefits and public investment as well as a reduction in the statutory retirement age, could erode the structure of public finances.
Strengthening the fiscal position might be difficult given that local, presidential, and parliamentary elections are scheduled to be held within 18 months.
Last Updated: Oct 16, 2018