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Labour market reform critical to Polish prospects

Radical labour market reforms could boost potential GDP growth in Poland to 7% per annum. But with little political appetite for reform, we think that growth will drop back from 6% this year to around 4-5% over the medium-term instead. While on the face of it this still appears to be strong, it will not be sufficient to close the gap in living standards between Poland and other Central European countries.

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