17:49 15 October 2024
ING economist: cheap labor not enough for Poland to catch up
Rafał Benecki, chief economist at ING Bank Śląski, emphasizes that Poland's economic model, successful for the past 20 years, must change to match Western Europe. Poland's advantage of low labor costs has diminished, and demographic trends are unfavorable. To sustain growth, Poland needs to shift from an economy dominated by small firms to one with more large, innovative companies. The banking sector will play a key role in financing this transformation.
Benecki highlights Poland's impressive economic progress, with GDP tripling in 20 years and surpassing Spain and Portugal. However, challenges remain, especially in investment and innovation, where Poland lags behind Western Europe. He stresses the importance of increasing investment, improving productivity, and expanding large firms, which drive innovation.
Despite low unemployment, rising labor costs and a shrinking workforce create economic pressures. To continue its growth, Poland must focus on boosting productivity and supporting larger, more innovative companies, following the example of South Korea’s national champions.
