Living standards in Poland have risen significantly in past two decades, with GDP per capita doubling since 2005. Following the inflationary shock in 2022?23, the economy is expected to continue to recover this year and next. A sufficiently restrictive monetary policy is needed to bring inflation back to target. Following large increases in health, social and defence spending, Poland requires a sustained fiscal adjustment to bring down fiscal deficit.

?Despite important improvements in health, life expectancy in Poland remains among the lowest in the OECD. While spending has increased in recent years, there are avenues for improving the efficiency of the healthcare system. It is important to continue with improving incentives in primary care, streamlining of the hospital network and training more medical staff. In view of the ageing population, a framework for expanding long?term care is required.

To sustain productivity growth, competition should be strengthened and workers’ skills upgraded. Implementing a more ambitious energy and climate change strategy will be key to achieving the goal of net?zero emissions. This requires a faster deployment of renewables and a phase?out of coal.