Part 7/9:
Inflationary Pressures: High inflation rates, driven by surging wages and the impact of geopolitical tensions in neighboring Ukraine, pose a risk of a wage-price spiral in the economy. With wages soaring by 14.7% year-on-year in Q2, there are concerns that inflation may remain persistently high, hovering above the national bank's target range.
Labor Shortages: Despite a low unemployment rate of 2.9%, which is the second lowest in the EU, this figure raises alarm bells regarding potential labor shortages, especially given the declining and aging population. With projections suggesting that Poland may lose around 2.1 million workers by 2035, sectors such as transportation and construction are already experiencing significant workforce gaps.