A new World Bank report emphasizes that productivity growth through faster technological adoption, labor market reforms, and a smart industrial strategy aligned with green ambitions is crucial for Poland's economic competitiveness. This must be coupled with increased social inclusion as the country faces challenges such as an aging population and the costs of delayed decarbonization.
The Systematic Country Diagnostic Update – Reaching the Last Mile of Convergence highlights that productivity growth is essential to maintain Poland’s economic success since 1989. Enhanced efficiency in manufacturing, labor, and domestic financial markets are necessary for Poland to integrate into new regional and global value chains and manage the transition away from coal.
Durable productivity growth requires a focus on social inclusion through increased labor market participation, improved social safety nets, and ensuring a just transition for coal mining areas. The report identifies six key areas for advancement: innovation, education, market efficiency, infrastructure, social protection, and institutions.
“Increasing productivity is necessary for Poland to navigate the demographic headwinds and upcoming transitions for the benefit of its people,” said Ary NaÏm, World Bank Group Country Manager for Poland. “Achieving this will require more flexible regulations, innovation from firms, faster technological adoption, and substantial R&D investments. Deeper capital markets and more public-private partnerships can help but higher productivity will not be possible without equal opportunities and efficient social safety nets. Poland has the opportunity to enter a next phase of productivity growth and convergence while leaving no one behind.”
Investments in education and labor market systems are vital for productivity growth. Policies fostering adult education and training are needed to keep employees' skills up-to-date with technological changes. Increasing labor market participation among women and vulnerable groups could ease demographic pressures while supporting inclusion.
The SCD reviews Poland’s progress since 2017, noting continued convergence with the EU supported by regional integration, human capital accumulation, and private sector-driven productivity growth. However, it also points out areas needing improvement such as institutional quality, high carbon intensity of the economy, and gaps in social protection.
The report outlines opportunities for helping Poland complete its convergence with EU average incomes while maintaining inclusion and ensuring environmental sustainability.
About the World Bank Group: The World Bank Group aims to create a world free of poverty on a livable planet. Operating in over 100 countries, it provides financing, advice, and innovative solutions that improve lives by creating jobs and strengthening economic growth.