The government has identified a new engine for the Polish economy. PLN 200 billion per year is at stake

The government wants the growing spending on security to also become a development impulse for the Polish economy. Minister of Finance and Economy Andrzej Domański announced that the domestic defense industry is to be one of the new engines of growth, and the money allocated for defense should translate into investments.

The minister talked about the plans during the conference “Direction for the Future – strategic investments and Poland’s economic development” held in the Sejm. He recalled that over 37 years the value of the Polish economy increased from USD 67 billion to over USD 1 trillion. This year, Poland’s nominal GDP exceeded PLN 4 trillion.

The Polish defense industry is a new engine of the economy

According to Domański, Poland is entering the next stage of development in which investments, safety, innovation and efficiency will play a greater role. The country should gradually move away from building competitive advantage primarily on costs and base it more on productivity and technology.

One of the most important areas is to be the defense industry. Poland is among NATO leaders in terms of defense spending. Domański informed that after signing the agreement regarding the SAFE program in May, orders in the Polish industry increased by 143%.

PLN 200 billion annually for defense

The minister emphasized that expenditure for this purpose amounts to PLN 200 billion per year. According to him, such large funds must translate into both the rate of economic growth and the level of investment.

Domański pointed out that security should not be treated as the opposite of economic development. In his opinion, it is a condition for further growth, and the money spent on defense can also stimulate the development of domestic industry and innovation.

The government wants to invest in artificial intelligence

The defense industry is not the only sector for which the government has high hopes. Domański considered the development of artificial intelligence to be one of the most important changes currently taking place in the economy. In his opinion, AI can transform the global economy on a scale comparable to the impact of the Internet or electricity.

The government intends to invest in the development of computing infrastructure. Two of the 19 European AI factories are being built in Kraków and Poznań. Poland is also participating in the competition to create an artificial intelligence gigafactory in Europe.

More money for the space industry

The next strategic direction is to be technologies and the space industry. Poland decided to double the contribution paid to the European Space Agency. According to the minister, this money goes back to the national space sector and is intended to support the economy in the coming decades.

Domański pointed out that Poland must create new competitive advantages. Technology is intended to increase productivity, energy to ensure competitiveness and independence, and security to protect the economy and at the same time stimulate industry. The state’s task is to create conditions that will allow Polish enterprises to use this potential.