19:43 11 January 2022
Poland's economic development potential may decline
In the last 30 years, Poland has made a huge leap in development. Economic growth at that time was primarily the result of increasing the capital stock and production efficiency, which are directly related to investments, CASE analysts indicate in a new report. Experts emphasize, however, that since 2015 the investment rate has been gradually decreasing – in 2019 and 2020 it was almost 1/3 lower than in neighboring countries. The main reason for this is a decline in private investment. In addition, investments in Poland are low in sectors such as information and communication, where rapid technical progress requires high investment outlays. This will mean that Poland's economic development potential will decrease in the future.
"Investments are the factor that creates capital. Thanks to them, we can restore the capital that we used in previous years, or create a new one, thanks to which we will be able to produce more in the coming years. In our report, we show that it was the capital increase that was the factor that gave more than half of Poland's economic growth in the last 30 years of transformation, with a small share of changes in the labor force, but also with very high importance of productivity growth," dr hab. Jan Hagemejer, professor at the University of Warsaw, vice president of CASE – Center for Social and Economic Research, said.
(Newseria)
