Poland is facing a significant issue with wages, exacerbated by the government’s lack of a coherent economic policy, according to Professor Zbigniew Krysiak, head of the Program Council of the Schuman Thought Institute. In a recent interview, Prof. Krysiak highlighted concerns over the current economic situation, including rising unemployment and sluggish economic growth.
Initially, Poland’s GDP growth for 2024 was projected to exceed 3%. However, recent forecasts have downgraded this estimate to around 2%, with Prof. Krysiak suggesting it could drop to as low as 1% or even closer to zero by year’s end. This slowdown is coupled with a worrying trend in wage growth, which, despite a nominal increase, is failing to keep pace with rising inflation, particularly in sectors such as food and housing.
Prof. Krysiak pointed out that the apparent wage growth, which saw average salaries rise by over 14% last year, does not fully reflect the real economic strain on households. As inflation continues to rise, driven by escalating energy costs, the actual purchasing power of wages is being eroded. This has led to a situation where even recent salary increases are insufficient to match the growing cost of living.
The professor also expressed concern over the labor market, noting that while there is no immediate shortage of workers, the rapid pace of layoffs in various industries could soon make the decreasing number of Ukrainian workers in Poland a significant issue. He suggested that the government should develop better immigration policies to attract workers from other countries, such as India, Vietnam, and EU nations like Spain and Portugal.
Additionally, the banking sector’s tightening of credit for small and medium-sized enterprises (SMEs) is another area of concern. Prof. Krysiak criticized banks for misjudging the risks associated with the SME sector, attributing this to what he described as “ecological madness,” where larger companies can obscure their creditworthiness by highlighting their adherence to green regulations. This, combined with the lack of investment from state-owned enterprises, particularly in the energy sector, is further deteriorating the economic outlook for SMEs.
Prof. Krysiak’s insights paint a grim picture of the Polish economy, stressing the urgent need for a strategic and effective economic policy to address these growing challenges.