Poland’s booming economy is now more crucial to Germany than China, but risks like high deficits and legal uncertainty loom. Can Poland maintain its momentum?
Polish Demand Fuels German Economy
While Germany struggles with economic stagnation, Poland’s economy continues to surge. According to Frankfurter Allgemeine Zeitung (FAZ), Poland’s GDP grew by around 3–3.5% in 2024, making it one of the EU’s fastest-growing economies. Strong domestic demand has turned Poland into Germany’s fourth-largest export market, even surpassing China. Robust public investments, driven by EU funds and defense spending, further fuel this growth. Despite sectoral layoffs, unemployment remains low at 3%, reinforcing Poland’s role as an economic locomotive for the EU.
Challenges Threatening Poland’s Momentum
However, Poland’s rapid rise is not without risks. FAZ highlights concerns over a high budget deficit, complex bureaucracy, and unpredictable regulations. Analysts warn that a strong currency could erode export competitiveness, while reliance on foreign investors and geopolitical instability add uncertainty. Even after 20 years in the EU, Poland still trails the bloc’s average income per capita. Whether Poland can sustain its economic boom or will face structural hurdles remains an open question.