What Does Poland Need To Keep Its Economy On The Move?
Warsaw, Poland
Only a handful of economies globally have shown unremitting growth for almost a quarter century. Poland is one of them. A report by McKinsey & Company, developed in cooperation with Forbes Poland, lists conditions for this performance to continue.
Despite several global and regional crises and various burst bubbles and crashes along the way, Poland has been on a constant growth trajectory since 1992. That is a phenomenon comparable with countries like China, India or Norway. The country’s economy is set to continue heading north this year, and there is no reason to believe it will not fly high again in 2016. But if the country is to stay on track it must move on to the next, challenging stage of its transformation.
The October edition of Forbes Poland includes “5 opportunities for Poland”: a McKinsey & Company comprehensive report, developed in an unprecedented collaboration with our magazine. The report identifies key tasks the country faces. As well as using its own analysis, McKinsey also asked 2,000 Polish citizens what improvements in their standard of living they expected to see and what they would be willing to do to achieve these improvements. They also asked the CEO’s of Poland’s largest firms, owners of capital and owners of the fastest- growing enterprises in Poland, what they considered to be priorities for stimulating growth.
Today, Poland’s economy is competitive largely thanks to its low manufacturing costs. This needs to change. Faster adoption of new technology would raise the value added of products and services. On average, investment needs to grow by over 50 billion dollars a year over the next decade. Shrinkage of skilled workforce will be a limiting factor unless the country opens up the labor market and develops its vocational and technical education.
Poland has achieved enormous economic success since the beginning of the transformation process more than 25 years ago. Real GDP has more than doubled and since setting off on its path of transformation, Poland has significantly closed the gap with Western Europe. In 1990, GDP per capita (PPP) was a meagre third of the average in the EU-15 countries; in 2014, it was already only a third less.
Only a handful of economies globally have shown unremitting growth for almost a quarter century. Poland is one of them. A report by McKinsey & Company, developed in cooperation with Forbes Poland, lists conditions for this performance to continue.
Despite several global and regional crises and various burst bubbles and crashes along the way, Poland has been on a constant growth trajectory since 1992. That is a phenomenon comparable with countries like China, India or Norway. The country’s economy is set to continue heading north this year, and there is no reason to believe it will not fly high again in 2016. But if the country is to stay on track it must move on to the next, challenging stage of its transformation.
The October edition of Forbes Poland includes “5 opportunities for Poland”: a McKinsey & Company comprehensive report, developed in an unprecedented collaboration with our magazine. The report identifies key tasks the country faces. As well as using its own analysis, McKinsey also asked 2,000 Polish citizens what improvements in their standard of living they expected to see and what they would be willing to do to achieve these improvements. They also asked the CEO’s of Poland’s largest firms, owners of capital and owners of the fastest- growing enterprises in Poland, what they considered to be priorities for stimulating growth.
Today, Poland’s economy is competitive largely thanks to its low manufacturing costs. This needs to change. Faster adoption of new technology would raise the value added of products and services. On average, investment needs to grow by over 50 billion dollars a year over the next decade. Shrinkage of skilled workforce will be a limiting factor unless the country opens up the labor market and develops its vocational and technical education.
Poland has achieved enormous economic success since the beginning of the transformation process more than 25 years ago. Real GDP has more than doubled and since setting off on its path of transformation, Poland has significantly closed the gap with Western Europe. In 1990, GDP per capita (PPP) was a meagre third of the average in the EU-15 countries; in 2014, it was already only a third less.
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