The Polish economy is booming, but a big problem is looming. “We’re going on reserve”
– If Germany grew at a decent pace, for example 1-2%. annually, it would also give an additional impulse to the Polish economy. At the same time, recent years have shown that Poland is no longer completely dependent on the German economic situation. We were able to grow quickly in a period when Germany remained stagnant – says Dr. Hab. Marcin Piątkowski.
Marta Roels, “Directly”: In 2026, Poland was the sixth largest economy in the European Union, ahead of, among others, Belgium and Sweden, and was invited to participate in the work and summits of the G20 group. What is pulling the Polish economy so hard?
Poland has been the European leader in economic growth continuously since 1990. No other economy on our continent has grown as much as ours during this time. This is due to many factors. One of the few positive things that the Polish People’s Republic left behind was a relatively inclusive and mobile society that, in principle, gave almost all Poles a chance to succeed. We also started the transformation with a relatively high quality of human capital, which we have since significantly improved. Today, young Poles are very well educated – almost half of them have completed higher education, while in Germany this percentage is below 40%.
Secondly, despite rapidly growing real wages, especially when converted into euros or dollars, we are still cheaper than Germany and other Western European countries. We earn less, although our competences are often comparable, and at the same time, Poles are still hungry for success and want to work hard, which is no longer the standard in the West.
Thirdly, we benefit from being located close to one of the richest parts of the world, even though it now faces a huge challenge to maintain its competitiveness. Poland is a very attractive location in this respect: you can safely transfer capital here and start production, using a well-educated and hard-working workforce, and thus quickly increase the company’s competitiveness.
Pragmatic economic policy also helped us. We made mistakes, but throughout the transformation period we avoided disastrous economic decisions. Throughout successive crises, including the COVID-19 pandemic, we have used both fiscal and monetary policies to support the economy.
The development of infrastructure is also of great importance. Better roads and transport connections not only improve the quality of life, but also reduce the costs of doing business. Additionally, Poland is one of the most diversified economies in Europe. We export very different products – from food to luxury yachts or satellite technologies – which is why we are not as dependent on one industry as some other countries (Slovakia, Hungary, the Czech Republic on the automotive industry – ed.). If one sector stagnates, the growth of others compensates for these declines throughout the economy.
There are many sources of our competitiveness. Most importantly, despite over three decades of rapid growth, there is no sign that our economy is running out of breath. On the contrary, according to official forecasts, Poland is to be the fastest growing large economy in the European Union this year and next. There are few global precedents for such success.
For years, the Polish model was based on catching up with the West, cheap labor and the absorption of foreign technologies. However, we are approaching a technological wall. What specific industries or sectors need to take on the workhorse role now so that we don’t end up like an up-and-coming student?
