|GDP, current $ billion
|GDP per capita, current $
|Life Expectancy at Birth, years
The well-diversified Polish economy has recovered robustly after the shallow COVID crisis recession in 2020. Long-term inclusive growth and poverty reduction were supported by a sound macroeconomic framework, effective absorption of EU investment funds, a sound financial sector, access to long-term credit and to the European market. Strong domestic labor markets and higher median and bottom 40 real incomes have supported private consumption. Higher private investment, an improved innovation ecosystem, and further upgrading of regional value chains are needed to boost productivity and growth.
The policy response to mitigate the impacts of the COVID crisis and high inflation have narrowed the available policy space. Increased efficiency of spending and tax expenditure is needed to rebuild fiscal buffers, accommodate higher spending on health, defense, the green transition, and to prepare for fiscal pressures linked to the rapidly aging population.
Over the medium term, a key challenge stems from expected declines in labor supply due to the declining and rapidly aging population. The large influx of displaced Ukrainians temporarily eased some of the labor market tightness and boosted private consumption. Meeting decarbonization commitments is another challenge. Institutional strengthening is also needed for sustained and inclusive growth and for narrowing regional disparities.
Last Updated: Oct 10, 2023