Economics & Development

Poland has become one of Europe’s fastest growing large economies, successfully transitioning to high income status with strong convergence toward EU income levels and now aims to sustain inclusive and resilient growth by shifting to a high value, innovation driven economy while strengthening infrastructure and regional balance; however, structural challenges including reliance on traditional industries, fossil fuels, demographic pressures and climate risks require next generation reforms, with opportunities in digitalization, artificial intelligence, energy transition and leveraging its strategic role in regional value chains and Ukraine’s reconstruction, while the FY26 to 31 Country Partnership Framework reflects a shift in World Bank Group engagement toward knowledge services and private capital mobilization, focusing on innovation and job creation, energy sustainability and security and water resilience, with a One World Bank Group approach to catalyze private investment, strengthen institutions and support resilient, productivity led growth, positioning Poland as both a development partner and a global knowledge contributor.

The Debt Sustainability Analysis (DSA) assesses Liberia at moderate risk of external debt distress and at high risk of total public debt distress, with limited space to absorb shocks. Staff consider public debt to be sustainable. The PV of external debt remains below the threshold over the entire projection period. More than 90 percent of Liberia’s external debt is on highly concessional terms and held by multilateral lenders. Domestic debt is mostly denominated in U.S. dollars but most of it is owed to the Central Bank of Liberia (CBL) at favorable terms. Debt projections are predicated on continued prudent fiscal policy that maintains the primary fiscal deficit below 1 percent of GDP over the projection horizon while avoiding non concessional external borrowing in the nearer term. Key downside risks include negative shocks to growth and terms of trade, declining international aid and foreign direct investment, and a potential reversal of prudent fiscal policy. Liberia is highly vulnerable to climate and epidemic shocks, which could increase import needs, reduce export capacity, and worsen economic resilience and social stability. The RSF financing improves the balance of risks by helping Liberia address climate-related and pandemic vulnerabilities and build resilience. This DSA is being conducted in the context of the third review under the ECF-supported program approved in September 2024 and the request for financial support under an RSF.