Poland may be 15 percent richer? The World Bank indicates one condition

Bulgaria, Croatia, Poland and Romania could increase labor productivity by 10 to 15 percent through greater adoption of digital technologies, especially AI-based software and tools, according to a World Bank report.

With the EU economy growing by around one percent a year, benefits of this scale could boost growth, raise wages and help make workplaces more resilient, it said.

According to the report “Innovation Rising: Lifting Central and Eastern Europe's Jobs and Growth Potential”,The Central and Eastern European region is entering a new phase of development. Convergence with the EU has helped build the foundations for the development of innovation, but maintaining economic growth will increasingly depend on mobilizing private investment and redirecting capital to the most productive companies.

The report shows that faster and broader implementation of new technologies, especially in the small and medium-sized enterprise sector, would help accelerate growth and strengthen competitiveness in the region.

“Central and Eastern European countries have made impressive progress over the last two decades. Incomes have approached EU average levels and millions of people have gained wider development opportunities,” said Anna Akhalkatsi, director for the European Union at the World Bank Group, quoted in the press release.

“Maintaining this progress will depend on increasing productivity through greater use of digital technologies, greater investment in employee skills and clear, predictable rulesthat help companies innovate, develop and compete on the market. In this way, economies create more jobs, increase their quality and build resilience for the future,” she added.

According to the World Bank, research and development expenditure in Bulgaria, Croatia, Poland and Romania are currently at less than 1.5 percent. GDP, which places it clearly below the EU average of 2.2%. GDP. Companies in the region are investing less in intangible assets such as software, research, data and management improvements. (PAP Business)

pel/ana/