The Organization for Economic Cooperation and Development (OECD) has issued a dire warning to Poland and the European Union. According to the OECD, Poland risks breaching the EU’s fiscal deficit rules next year. The warning comes as the new populist government increases public spending to pay for social programs such as childcare, while simultaneously making politically popular (but financially ill-advised) tax cuts.
Poland is an upper middle-income economies coming under the Europe and Central Asian region as to the classification made by the World Bank on the basis of income and region for the year 2006.
The country has adopted both liberalization and privatization policies over last two decades with a view of developing private business sector. Both services and industries sector constitute the larger share in the total Gross Domestic Product in the country.
Since 1990, Poland has been seeking economic liberalization. Today, the country has achieved its goal, now being considered a transition economy. Due to an increase of private consumption, investment inflows with the European Union, and a boost of corporate investments, the Gross Domestic Product saw an increase of 5.3% in 2008. Although the GDP is still average with the country being under the European Union since 2004, this membership has provided structural investment that helped boost the economy.
