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Monday, February 26, 2024

What about the purchasing power of Poles? We are far from the rich West

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Will we catch up with the Germans in terms of wealth in a few years? These data show that not so fast…

In 2023, the average purchasing power per inhabitant of Poland will be 10,903 euros, 38%. less than the European average. The latest GfK Purchasing Power Europe 2023 study shows that Poland has risen to 29th place in a ranking covering 42 European countries.

Residents of Liechtenstein (68,843 euros), Switzerland (49,592 euros) and Luxembourg (40,931 euros) have the highest purchasing power.

The Bankier website calculates that Poland’s distance from the EU average is 38%. Therefore, the assurances of Jaroslaw Kaczynski during the election campaign that the Poles are almost as rich as the Germans are not true.

– We want to reach the point where Poles earn as much as the French or Germans. It’s a shock there in the West, I have no doubt that we are developing so quickly,” added Jacek Sasin.

Wealth comes from innovation

At the next meeting, he stated that “in eight years, the list of countries that have caught up or overtaken will be very long.” As you can see, this time there will be much more time. In an interview with Money.pl, economist Prof. Witold Orlovsky calculated that in 20-30 years we will catch up with our neighbors on the Oder. He warned that continually raising the minimum wage would not cause us to suddenly catch up with Germany.

– It’s a simple mechanism. If the government doubles the minimum wage without increasing productivity, inflation will increase and prices will rise accordingly. The exchange rate will weaken against the euro and we will be in the same place behind Germany as today, only with higher inflation,” said Prof. Orlovsky.

In his opinion, we also have an almost 40 percent lower average level of labor productivity than Germany. This is why employees in Poland earn less. – If someone tries to increase wages faster than labor productivity requires, inflation will only increase. The condition for catching up with Germany is real economic growth – prof. Orlovsky.

Designed by: Martina Koska
Source: Directly
  • Economy

Source: Wprost

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