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2006 OECD Economic Surveys: Poland 2006

image of OECD Economic Surveys: Poland 2006

This edition of OECD's periodic review of Poland's economy finds that growth has strengthened again in Poland, but that higher rates of investment, further structural change, and improved labour and education policies are required to sustain this growth. After analysing the key economic challenges Poland faces, this Survey assesses monetary and exchange rate policies, examines what is needed to achieve fiscal sustainability, and looks at how Poland can boost and adapt human capital through improved education. It closes with at chapter on structural adjustment covering sectoral reallocation, entrepreneurship and innovation, and labour market reform.

English Also available in: Polish, French

Encouraging Structural Adjustment

GDP growth has been below potential for several years, with the exception of 2004. Structural change has continued, but in order to reduce unemployment and increase both actual and potential growth, adjustment will need to proceed more quickly. Labour force flexibility is restricted more by the social transfer system than by labour market policies themselves, although these and other factors such as the housing market and education do play a role. Adjustment and potential growth are also hindered by some features of the business environment, particularly aspects of product market regulation and the still-important role of the public sector in the economy, while policies to increase innovation have yet to produce significant results.

English Also available in: French

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