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Cost effectiveness in Poland was key

This article is from page 59 of the 2009-01-13 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 59 JPG

, the low cost of la- bour in Poland was the main driving force behind the move. According to figures produced by top US econo- mist Dr Robert Kennedy, Ireland’s average wage, when calculate as pop- ulation divided by GDP, is €37,000

compared to just €8,190 in Poland.

According to the latest statistics available from the CIA’s World Factbook, Poland had _ industrial growth rate stands at nearly nine per cent – far in excess of that in Ireland. Despite this growth however, the un- employment rate still stands at 12.8 per cent with inflation less than two ome ale

Both these factors help to keep wages in Poland low compared to Ireland.

‘Poland has pursued a policy of economic liberalization since 1990

and today stands out as a success story among transition economies,” said the CIA World Factbook.

“GDP has grown by an estimated 6.5 per cent, based on rising private consumption, a jump in corporate investment, and EU funds inflows. GDP per capita is still much below the EU average, but is similar to that of the three Baltic states.”

Meanwhile, an EU Commission in- vestigation into the €52 million pay- ment to Dell from the Polish govern- ment will commence this week.

The commission has doubts as to

its compatibility with the rules on regional aid for large investment projects and in particular needs to verify more closely the definition of the market for the products to be made at the plant, the extent of the increase in production capacity re- sulting from the investment and the extent to which demand for these products is in decline.

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