A series of recently-published analyses indicate that Poland is moving forward in global rankings, showing the effects of changes in the Polish model capitalism based on the Strategy for Responsible Development prepared by Prime Minister Mateusz Morawiecki’s government and described in the Polish Economic Institute’s report “Capitalism – the Polish way”.
S&P revises Poland’s credit rating
S&P Global has revised Poland’s credit rating, increasing it from BBB+ to A- with outlook “stable”. It highlighted Poland’s strong, balanced development budgetary results exceeding expectations since 2015. It also noted the decrease in public and foreign debt.
As the first country worldwide in almost a decade, Poland has joined the ranks of “developed economies” in the FTSE Russell index, alongside the United States, Britain and Germany. The change in status was preceded by several months of preparations, which involved adding 37 companies, including PKO BP and Pekao, to the index of developed markets.
Growing human capital
One of the most important pieces of information this autumn, or perhaps this entire year, is World Bank’s first Human Capital Index, in which Poland came 30th out of 157 countries. With a result of 0.75, the country ranks above Spain (0.74), Iceland (0.74), Luxembourg (0.69) and Greece (0.68).
Child poverty declining
Comparing Eurostat data for 2016 and 2017, the decrease is striking. In 2016, 24.2% of children were threatened by poverty or social exclusion. In 2017, this percentage had fallen by 6.3%, to 17.9%, the biggest drop since Poland joined the EU.
Grey zone shrinking
According to management consulting firm A.T. Kearney, Poland ranks fifth among the countries reducing the grey zone most effectively. In 2007-2016, its shadow economy contracted by 30%, from 24.9 to 17.4% of GDP.
VAT gap decreasing
In 2016, Poland ranked fifth in the EU in terms of reducing the VAT gap – from 24.3% in 2015 to 20.8% in 2016. According to estimates by CASE for the European Commission, the drop of 3.5 percentage points over the course of a year was one of the best results in the EU.
Trust in public institutions rising
According to the World Happiness Report, in 2007 just one in five inhabitants of Poland trusted the government (19%). Over the past decade, trust in public institutions has risen significantly, to 50% of Poland’s inhabitants in 2017.