Poland: Improving steadily
Economic performance has been improving steadily, with growth of 5% combined with low inflation and plunging unemployment. Continuing strength in investment and exports should support robust growth in 2007 and 2008. Job creation is projected to maintain its recent momentum and to make significant further inroads in unemployment. Productivity gains are projected to be moderate, and, with rather faster wage increases, costs may push inflation towards the official target of 2.5%.
With a vigorous expansion well established and inflation set to move higher, an expected monetary tightening in 2007 will be appropriate. The projected fiscal outcome for 2006 is encouraging, but budgetary consolidation and rationalisation of expenditure planning need to be pursued further to take full advantage of higher growth.
| Population (000s), 2005 | 38 161 |
| Area (000 sq km) | 313 |
| Currency | Zloty |
| GDP (Billion USD), 2005 | 487.3 |
| Life expectancy at birth (Women, Men), 2005 | 79.2, 70.7 |
| Total labour force (000s), 2005 | 17 218 |
| Government type | Republic |
| Indicators | % change unless otherwise indicated |
| 2006 | 2007 | 2008 |
| GDP growth | 5.1 | 5.1 | 4.8 |
| Consumer price index | 1.4 | 1.9 | 2.3 |
| Unemployment rate (%) | 14.2 | 12.6 | 11.3 |
| General government financial balance after reclassification* (% GDP) | -4.1 | -3.8 | -3.6 |
| Current account balance (% GDP) | -2.1 | -1.9 | -1.5 | |
* After 2007 Eurostat reclassification to exclude defined-contribution funded pension revenues
Source: OECD©
OECD Observer No. 258/259, December 2006
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