|GDP, current US$ billion||585.5|
|GDP per capita, current US$||15,418|
|Life Expectancy at Birth, years (2017)||77.9|
Poland is now among the fastest-growing economies in the European Union (EU). Household consumption, fueled by expected increases in budgetary expenditures, a tight labor market, and rising wages, continues to grow. This, together with continuing low interest rates and the execution of EU funds–related investments, will help sustain Poland's economic growth prospects in the near term.
The two main challenges ahead for Poland are a shortage of labor and expansionary measures encouraged by the political calendar.
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. Poland is at an advanced stage in its demographic transition; its working-age population is already shrinking and is forecast to further decline in the coming years.
A dense political calendar, with EU, presidential, and general elections taking place within one year, has inspired a range of expansionary policies. Proposed measures to increase social benefits, lower tax rates, and inflate the cost of pension payments will put pressure on public finances. Due to the political cost of reversing these policies, they will weigh on Poland’s fiscal position.
Last Updated: Oct 25, 2019