Economic match between Spain and Poland

Tomorrow at EURO 2020, the Polish team will face Spain. It will be a difficult match as the opponent is ranked sixth in the FIFA ranking, while Poland is ranked 21st. Let's see what the result of such a match would be, if not the teams, but the economies of both countries were to compete.

Gross domestic product

It remains a good, though not ideal, measure of the wealth of societies Gross domestic product per capita, i.e. the sum of goods and services produced in the economy divided by the number of citizens of a given country. Spain's GDP per capita at the end of 2020 was EUR 23, or 690%. more than the Polish EUR 74 13 (estimate, at current prices). However, the real difference in living standards is much lower than 640%, and it results from the fact that many products and services are cheaper in Poland. Eurostat publishes the Actual Individual Consumption (AIC) index, which better illustrates the real purchasing power of households verified with the purchasing power parity. For Spain, the rate was 91%. the Community average, while for Poland it is 79 percent. (data for 2019).

Spain and its citizens are richer than the Poles, so Spain scores the first goal: 1-0.

About the author

Pawel Majtkowski - analyst eToro on the Polish market, which shares its weekly commentary on the latest stock market information. Paweł is a recognized expert on financial markets with extensive experience as an analyst in financial institutions. He is also one of the most cited experts in the field of economy and financial markets in Poland. He graduated from law studies at the University of Warsaw. He is also the author of many publications in the field of investing, personal finance and economy.

Pandemic

2020 was a tough year for all economies. However, the problems hit Spain much more, whose GDP shrank by 10,8 percent, while the Polish economy shrank only by 2,7 percent. The large decline in 2020 means that the growth forecasts for Spain are better than for Poland - in 2021, the European Commission forecasts that Spanish GDP will increase by 5,9 percent, and Polish GDP by 4 percent. In 2022 it will be 6,8 percent, respectively. and 5,4 percent Poland's GDP has returned to its pre-pandemic state now, i.e. in the second quarter, and Spain will have to wait almost 1,5 years for the same. Provided that forecasts are met.

The Polish economy has been less affected by the pandemic and we have 1:1.

Inflation

Inflation affects most economies, but in Poland its growth is particularly strong. In May, CPI inflation was 4,7%. y / y, while in Spain prices increased by 2,72%. y / y HICP inflation, calculated according to the uniform European methodology, in April amounted to 5,1% in Poland and 1,95% in Spain. Inflation has many causes, but the most important is the high money supply in the market. In this case, high inflation in Poland is the price we pay to keep unemployment low and stimulate economic growth.

Poland has higher inflation, so Spain is already in the lead 2:1.

Unemployment

Spain has the highest unemployment in the European Union, amounting to 15,4 percent. (April 2021, Eurostat), while Poland the lowest - 3,1 percent. In Poland, 524 people remain unemployed. people, and in Spain it is as much as 3,47 million people (the population of Spain is 47 million, Poland's 38 million). The unemployment of people under the age of 25 is particularly dramatic, 38% of them remain unemployed. Spaniards at this age. In Poland, 12,6 percent are unemployed. young.

High unemployment is a serious Spanish problem, so Poland scores an equalizing goal and it is 2:2.

Stock exchanges

It is also worth paying attention to the stock exchanges in both countries. Index IBEX 35, which brings together the most important companies from the Madrid trading floor, has increased by 13,12 percent since the beginning of the year. At the same time corresponding to him in Poland Wig20 increased the value by 11,7 percent. The Madrid stock exchange turned out to be better. It is worth noting, however, that both were beaten by an American S & P500 indexwhich in the same period increased by 13,17 percent.

This means Spain wins our scoreboard of economic baseline data 3:2. And we will have to wait until Saturday for the result of the field duel.