Regions and Cities at a Glance 2018 – POLAND http://www.oecd.org/regional

Economic trends in regions

Regional gap in GDP per capita, 2000-16 Index of regional disparity in GDP per capita, 2016

Top 20 % richest over bottom 20% poorest regions 2016 2000 GDP per capita in USD PPP Ratio 4 45 000 Small regions Large regions (TL3) (TL2) 40 000 Highest region 35 000 Mazowieckie 39 813 USD 3 30 000 Poland 25 000 25 197 USD 20 000 Lowest region 2 15 000 Lubelskie 10 000 17 329 USD 5 000 1 0 2000 2005 2010 2016

Country (number of regions considered) Differences between Polish regions in terms of GDP per capita have increased over the last sixteen years. Lubelskie, the poorest region in the country, has a GDP per capita level equivalent to 44% of the GDP per capita in Mazowieckie, the richest region. Poland has the fifth highest regional economic disparities among 30 OECD countries with comparable data. With a productivity growth of 4.5% per year over the period 2000-16, Greater Poland recorded the highest productivity growth and has been closing the productivity gap with Mazovia, the Polish frontier in terms of productivity. In contrast, Swietokrzyskie fell further behind the most productive regions in Poland as it recorded the lowest productivity growth at 1.2% per year. Youth unemployment rates differs widely across Polish regions. With 26% of youths unemployed, youth unemployment in Podkarpacia is almost four times higher than in Wielkopolskie, the Polish region with the lowest youth unemployment rate.

Productivity trends, most and least dynamic regions, 2000-16 Youth unemployment rate, 15-24 years old, 2007-17

GDP per worker in USD PPP Mazovia: highest rate (%) 90 000 productivity in 2016 50 80 000 (+1.8% average annual 40 Highest rate 70 000 growth over 2000-16) 30 Podkarpackie 60 000 Greater Poland: highest 26% productivity growth 50 000 20 (+4.5% annually) OECD Poland 40 000 14.8% 10 30 000 Swietokrzyskie: lowest Lowest rate productivity growth Wielkopolskie 20 000 0 (+1.2% annually) 7% 2000 2005 2010 2016 2008 2012 2017 Source: OECD Regional Database. Notes: (1) Figure on regional gap in GDP per capita: OECD regions refer to the administrative tier of subnational government (large regions, Territorial Level 2); Poland is composed of 16 large regions. (2) Figure on index of regional disparity: top (bottom) 20% regions are defined as those with the highest (lowest) GDP per capita until the equivalent of 20% of national population is reached, this indicator provides a harmonised measure to rank OECD countries, using data for small regions (Territorial Level 3) when available. (3) Productivity is measured as GDP per employee at place of work in constant prices, constant Purchasing Power Parities (reference year 2010). Updated the 5th of March 2019 Differences in well-being across regions

Top region Bottom region Mazowieckie Regions (Vojewodztwa)

Slaskie

Malopolskie top top 20% Lubelskie

(1 to 402) to (1 Podkarpackie Warminsko- Wielkopolskie Mazurskie

Zachodniopomorskie middle middle 60% Malopolskie Mazowieckie Zachodniopomorskie Mazowieckie Lubuskie

Ranking Ranking OECD of regions Dolnoslaskie Swietokrzyskie Mazowieckie Podkarpackie Podkarpackie Warminsko- Podkarpackie Lódzkie Mazurskie Podkarpackie bottom bottom 20% Slaskie

Safety Community Jobs Access to Life Environment Health Education Civic Income Housing services Satisfaction Engagement Relative ranking of the regions with the best and worst outcomes in the 11 well-being dimensions, with respect to all 402 OECD regions. The eleven dimensions are ordered by decreasing regional disparities in the country. Each well-being dimension is measured by the indicators in the table below.

All sixteen Polish regions rank among the top 25% of the OECD regions in education, while they rank among the bottom 20% in housing. The largest regional disparities are found in safety, with Malopolskie ranking in the top 20% of the OECD regions and Lubuskie in the bottom 30%. Large disparities also exist in the well-being dimensions community, jobs and access to services. Both in the high and low performing Polish regions, the share of labour force with at least a secondary degree is more than 11 percentage points higher than the OECD median. All Polish regions fare worse than the OECD average in employment rate, self- assessed life satisfaction, air pollution, life expectancy, mortality rate, voter turnout, disposable income per capita and number of rooms per person.

Country OECD median Polish regions Average region Top 20% Bottom 20% Safety Homicide Rate (per 100 000 people), 2016 1.2 1.3 0.6 1.9 Community Perceived social netw ork support (%), 2013 90.5 91.4 93.2 87.7 Jobs Employment rate 15 to 64 years old (%), 2017 62.2 67.7 67.2 58.1 Unemployment rate 15 to 64 years old (%), 2017 5.0 5.5 3.6 7.6 Access to services Households w ith broadband access (%), 2017 76.0 78.0 80.3 70.4 Life Satisfaction Life satisfaction (scale from 0 to 10), 2013 5.8 6.8 6.2 5.6 Environment Level of air pollution in PM 2.5 (µg/m³), 2015 22.1 12.4 17.1 26.7 Health Life Expectancy at birth (years), 2016 78.0 80.4 79.0 77.1 Age adjusted mortality rate (per 1 000 people), 2016 9.5 8.1 8.8 10.0 Education Labour force w ith at least upper secondary education (%), 2017 94.5 81.7 96.2 92.4 Civic engagement Voters in last national election (%), 2017 or lastest year 50.9 70.9 54.8 44.9 Income Disposable income per capita (in USD PPP), 2016 13 011 17 695 15 375 10 888 Housing Rooms per person, 2016 1.0 1.8 1.1 0.9 Source: OECD Regional Database. Visualisation: https://www.oecdregionalwellbeing.org. Notes: (1) OECD regions refer to the first administrative tier of subnational government (large regions, Territorial Level 2); Poland is composed of 16 large regions. (2) Household income per capita data are based on USD constant PPP, constant prices (year 2010).

Updated the 5th of March 2019 Metropolitan areas in the national economy

OECD population is concentrated in cities* Percentage of population in cities, 2016 PolandUnited States OECD average people in cities with population above 500 000 people outside cities 33% people in cities 30% 1.2 billion people 38 million with population outside cities 47% people - 53% people - 70% 55% people in cities with above 500 000 live in cities live in cities population between people in cities with 6% 250 000 and 500 000 8% population between 50 000 and 250 000 9% 12% people in cities with people in cities with population population between between 250 000 and 500 000 50 000 and 250 000 Source: OECD Metropolitan Database. Number of cities: 58 in Poland and 1 138 in the OECD. In Poland, 53% of the population lives in cities of more than 50 000 inhabitants. The share of population in cities with more than 500 000 people is 33% compared to 55% in the OECD area.

Importance of metropolitan areas Contribution of metropolitan areas to GDP growth Cities above 500 000 people, 2016 Cities above 500 000 people, 2000-16 OECD average % Poland OECD average % Poland 80 80 68% 70 63% 70 58% 60 55% 60 46% 49% 50 39% 50 40 33% 40

30 30 areas 20 20

10 10 327metropolitan Warsaw 0 0 % of national % of national % of national All metropolitan1 areas Largest contributor2 GDP employment population Polish metropolitan areas account for 46% of national GDP but only 39% of national employment. Between 2000 and 2016, the metropolitan areas generated 49% of the national GDP growth. Warsaw metropolitan area is among the top 25% in the OECD in terms of GDP per capita, whereas the four metropolitan areas of Katowice, Bydgoszcz, Lublin and Rzeszow are in the bottom 20% of the 327 OECD metropolitan areas. All Polish metropolitan areas, apart from Gdansk and Bydgoszcz, are found among the 20% most polluted OECD metropolitan areas in terms of PM 2.5 levels. Cracow is the most polluted metropolitan area in Poland. OECD Metropolitan areas ranking Cities above 500 000 people

USD PPP 100 000 80 000 GDP per 60 000 40 000 capita, 2016 20 000 0 Top 20% richest Bottom 20% poorest metropolitan areas metropolitan areas

Lev el of air pollution in PM 2.5 (µg/m³) 30 Air pollution 20 (PM2.5), 2017 10 0 Top 20% least polluted Bottom 20% most polluted metropolitan areas metropolitan areas Source: OECD Metropolitan Database. Number of metropolitan areas with a population of over 500 000: ten in Poland compared to 327 in the OECD. * Note: Cities are defined here as functional urban areas, which are composed by high-density urban centres of at least 50 000 people and their areas of influence (commuting zone). For more information, see: http://www.oecd.org/cfe/regional-policy/functionalurbanareasbycountry.htm.

Updated the 5th of March 2019 Subnational government finance

Subnational government expenditure by function As a share of total subnational government expenditure, 2016

Poland 00 OECD average

Education 28% 11 25% Education

Other 17% 22 15% Other

Health 16% 33 18% Health

Economic affairs 16% 44 14% Economic affairs

Social protection 13% 55 14% Social protection

General public services 11% 66 14% General public services

Subnational expenditure per capita: USD 3 487 77 USD 6 817

Subnational government expenditure amounts to USD 3 487 per capita in Poland compared to an OECD average of USD 6 817. In Poland, this is equivalent to 31.3% of total public expenditure and to 12.9% of GDP. In comparison, across the OECD, subnational government expenditure accounts for 40.4% of total public expenditure and for 16.2% of GDP. Education and the function ‘Other’ (housing and community amenities, recreation, culture and religion; environment; public order and safety) are the two largest spending items for subnational governments in Poland: together they represent 45% of subnational expenditure compared to 40% in the OECD area. In Poland, 35.7% of total public investment was carried out by subnational governments compared to an OECD average of 56.9%.

Role of subnational governments in public investment Subnational government public investment per capita, 2016

USD per capita Poland OECD average 1 400

1 200 Total public investment 1 000 USD 1 278 per capita 800 Total public investment 3.0% of GDP USD 872 per capita 600 3.2% of GDP Subnational government investment 400 Subnational government USD 727 per capita investment 56.9% of public invest. 200 USD 311 per capita 0 35.7% of public invest.

Source: OECD Subnational Government Structure and Finance Database.

OECD Regions and Cities at a Glance 2018 The 2018 edition of OECD Regions and Cities at a Glance shows how regions and cities contribute to national growth and the well-being of societies. It updates its regular set of region-by-region indicators, examining a wide range of policies and trends and identifying those regions that are outperforming or lagging behind in their country. Consult this publication on line: https://oe.cd/pub/2n9

Updated the 5th of March 2019