Poland’s economy: Can do even better

“EVERYTHING depends on what happens in the east,” said Janusz Piechocinski, Poland’s economy minister, in a recent interview on Polish radio. Around one-fifth of Poland’s exports go to neighbouring Ukraine and Russia, thousands of jobs depend on trade with the east and Poland still gets a lot of its oil and some of its gas from Russia. No wonder then that, with an explosive stand-off between Russia and Ukraine, Mr Piechocinski is no longer certain that Poland’s GDP will increase by up to 3.2% and its exports by 6% this year, as he forecast only a few weeks ago.Yet Mr Piechocinski has more on his plate than geopolitics. Poland’s GDP has grown on average by 4% since 2004, when the country joined the European Union (EU). As the EU’s sixth-largest economy, Poland at first thrived even during the financial crisis, but the economy has slowed abruptly in the past couple of years. It is a sign that the government of Donald Tusk needs to change course.In its latest report on Poland, launched on March 10th in Warsaw, the OECD, an intergovernmental think-tank, said that more reforms are needed to get the economy growing fast again. The country ought to raise productivity by liberalising the labour market, privatising state-owned enterprises, cutting red tape and making agriculture competitive.Despite progress, participation in the labour market remains limited. This problem will…

Link to article: www.economist.com/news/europe/21599063-oecd-recommends-more-reform-can-do-even-better?fsrc=rss|eur

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