“The Polish economy was positively evaluated in the OECD report. The report also provides recommendations on our monetary policy, reduction of the tax wedge and increase in the employee mobility”, said Deputy Prime Minister Waldemar Pawlak during presentation of the 10th OECD report on the Polish economy. The meeting took place on 11 June.
Deputy Prime Minister Pawlak mentioned that the inflation rate was mainly fuelled by the petrol price rise. “Given the fact that our economy is coal energy based, we have a much lower inflation than countries which operate gas power plants”, he added. In the opinion of Deputy Prime Minister Pawlak, tightening of the monetary policy as suggested by the OECD experts was important in the context of reducing the inflation. “Still, we have to separate causes related to processes within the country from the external factors”, he stressed.
Waldemar Pawlak, Andrew Dean
The Deputy Prime Minister said we had to draw our attention not only to economic processes but also the administrative ones. “This is why the “Better regulations” project” is so important for the development”, he added. He also reminded that the National Programme of Reforms (KPR), which pursued the Lisbon Strategy in Poland would be oriented towards partnership for prosperity. “These actions will comprise three main areas: active society, innovative economy and efficient institutions”, the Deputy Prime Minister said.
The Deputy Prime Minister stressed that the KPR would promote longer professional and social activity. “We are short of skilled and experienced specialists. Their continued work will be beneficial both to the budget and the Polish economy”, he added.
When presenting the report, Andrew Dean, head of OECD Economics Department, positively evaluated the development of the Polish economy. “Poland achieved the second to Slovakia economic growth out of the OECD countries. The dynamic growth is expected to continue in 2008”, he added.
Mr Dean said that the economic development of Poland was described by the strong rise in investments. “The investments were largely financed with foreign capital”, he added. He also stressed the continued drop in unemployment. “Since 2004 the unemployment rate in Poland fell by half and is close to the OECD average. However, it is still relatively high compared to international standards”, Mr Dean said.
Potential threats to the Polish economy listed by Andrew Dean included the rising inflation and employee shortages, which accelerated the increase in pays and costs of labour. “The basic challenge in this context is to increase the employment through structural reforms. The monetary policy must be also tightened to avoid a potential spiral of rising prices and pays”, he added.
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OECD (Organisation for Economic Co-operation and Development) is an intergovernmental international organisation of 30 highly developed and democratic countries. The goal of the OECD is to support its members states in attaining the highest possible economic growth and living standard for their citizens. The OECD also provides aid to the poorest countries. Poland joined the OECD in 1996.
Evaluation of the Polish economy in an OECD report - press release
(download .pdf file)
Economic Survey of Poland, 2008
(download .pdf file)