Poland retains position in Economic Freedom Index

According to the report, Poland is the eighth economy of the European Union. Kalbar/TFN

Poland maintained its global position in the Economic Freedom Index, taking 46th place in the world ranking and 25th in the regional ranking, the Warsaw Enterprise Institute (WEI) said on Tuesday.

WEI noted that the Freedom Index 2020 Heritage Foundation and the Wall Street Journal shows that Poland remains in the group of "moderately free" countries.

The report said that this year's index for Poland stood at 69.1 points, up by 1.3 points compared to the previous year. The increase results mainly from the improvement of results in the categories of state reliability (up by 14.8) and fiscalism (up by 5.8).

According to the report, the index also showed a decline in the level of business conditions (down by 2.8), the labour market (down by 1.9) and the efficiency of courts (down by 1.2).

"Poland's rating is only slightly lower than the regional average of 69.8 points but definitely above the world average of 61.6 points," noted.

The report also said that the Polish economy has improved in the group of "moderately free" countries for over a decade. Progress has been accompanied by steady GDP growth in the last five years, driven by rapidly growing private consumption and investment. This has made Poland the eighth economy of the European Union, the report reads.

According to the authors of the index, the key challenges Poland faces are shortages in the labour market, especially in key sectors such as construction and IT, and the further need to equalise the level of development between the poorer eastern region of the country and the more prosperous west of Poland.

The Economic Freedom Index, has been prepared by the Heritage Foundation and The Wall Street Journal for over 20 years. The main goal is to juxtapose countries according to solutions and policies implemented to increase economic freedom, and thus promote the development and multiplication of the well-being of nations.