Oecd Economic Surveys Poland 2020

COVID-19 has hit the Polish society and its economy hard, even if to a lesser extent than other European countries. Employment has declined and public debt has increased abruptly, which will make it more challenging to solve long-term issues, such as the low productivity of some workers, weak environmental outcomes and rising ageing costs.

Greece’s economy had been expanding by nearly 2% for over three years before the COVID-19 shock. Structural reforms, high primary budget surpluses and debt measures underpinned Greece’s recovery and rising confidence. Then the COVID-19 pandemic struck, abruptly interrupting the recovery and adding new challenges to raising inclusiveness, competitiveness and growth.

The Polish economy is expanding rapidly and living standards continue to rise, catching up with those in other OECD countries. To sustain this trend Poland needs to invest further in skills and infrastructure and develop its capacity to innovate.

This 2002 edition of OECD's periodic review of Poland's economy examines recent economic developments, policies, and prospects and includes special features on public expenditure management and structural reform.

COVID-19 has hit the Polish society and its economy hard, even if to a lesser extent than other European countries. Employment has declined and public debt has increased abruptly, which will make it more challenging to solve long-term issues, such as the low productivity of some workers, weak environmental outcomes and rising ageing costs. Ensuring longer working lives in good health will be key to secure the pension system's sustainability. To boost the recovery and sustain the pre-crisis growth in living standards, Poland needs to invest in greener infrastructure, additional healthcare capacity and better skills. Easing the reallocation of firms and workers would facilitate shifts in the economic structure induced by the current crisis and raise productivity. Finally boosting the capacity of small and medium-sized enterprises (SMEs) to innovate would help them to export more and adapt to a rapidly changing international environment. SPECIAL FEATURE: BOOSTING SMEs' INTERNATIONALISATION

Poland has successfully managed a large inflow of refugees from Ukraine. Both monetary and fiscal policies should ensure that higher inflation does not become entrenched. Fiscal policy continues to support the economy in managing higher energy prices. Long term fiscal pressures need to be addressed, for instance by broadening the revenue base, improving spending efficiency and raising retirement age.

OECD's 2014 Economic Survey of Poland examines recent economic developments, policies and prospects. Special chapters examine labour market and competition policies.