Investing in greener, fairer economy to strengthen recovery from Covid-19 crisis: OECD

Poland has suffered milder economic losses from Covid-19  than many other countries, yet the crisis still risks aggravating inequalities and reversing gains in living standards. Focusing reforms and investment in building a greener and more inclusive economy with better quality jobs will help to secure a strong and sustainable recovery, according to a new OECD report.

The latest OECD Economic Survey of Poland says that while swift government support has cushioned firms and households from the worst of the economic shock so far, the pace of recovery from the pandemic is uncertain and the recession could have more protracted consequences. In particular, the crisis has disproportionately affected weaker regions, small firms, and disadvantaged workers. It has also accentuated pre-existing challenges such as Poland’s ability to finance long-term pension and health spending and to overcome barriers to growth for small businesses.

“Poland will likely exit the Covid-19 crisis with fewer scars than many other countries thanks to the strength of its economy going into the crisis and its swift response with containment and support measures when the pandemic struck. Yet reforms to tackle long-standing challenges are now even more essential if Poland is to get back to the pace of gains in living standards seen in recent years, ” Angel Gurría, OECD Secretary-General, said.

The Survey recommends ramping up investment in the digital economy and adult training and making it easier for Poland’s SMEs to grow nationally and internationally so they can generate better quality jobs. Bringing forward public investment in low-carbon energy and infrastructure could give a boost to the recovery while helping to lower greenhouse emissions and air pollution. Tax reforms could also support the recovery, in particular measures to lower taxes on low-skilled workers and ease tax compliance for smaller firms.

(WBJ)