Dziennik Gazeta Prawna - Special Edition: World Economic Forum Davos 2022
The Polish economy has proven over the past two years that it is powerful and that it has developed immunity against the shock triggered by the pandemic. Today, it is ready to become a crucial asset in the new economic architecture of the international arena.
Pandemic and State
The first conclusion we can draw from the pandemic is that secure growth is possible only with the cooperation of the market and the state. If it were not for swift shielding measures put in place for businesses in Poland, it would not have been possible to save hundreds of thousands of domestic companies and more than 6 million jobs. Today, the effects of these ventures can be seen with the naked eye. The unemployment rate in Poland has dropped to 3%, which is truly exceptional compared to other EU Member States.
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Due to the quick implementation of financial aid tools targeted at entrepreneurs, the pandemic did not take a heavy toll on the Polish economy as a whole. In 2020, Polish GDP dropped by a mere 2.2%. As the pandemic came to an end, most businesses managed to get back on track to successful growth.
In the years 2020-2021, the aggregate increase in GDP amounted to 4%, placing Poland second among the largest economies of the EU.
Security and Foresight
The pandemic now seems to be a thing of the past, but new challenges are coming. Today, Poland and the world have to address the problem of rising prices for energy raw materials. Putinflation poses a threat to stable growth in the coming years. But an even greater risk is connected to the complete unpredictability of Russia. Poland already experienced this when it was shut off from supplies of Russian gas. We are not giving in to the pressure exerted by the Kremlin, as Poland has been working toward securing diversity in its gas sources for many years now. We will begin to receive supplies of gas from Norway before winter.
Cautious and farsighted policies have become the hallmark of our government and, more importantly, they represent the stability of our country. Poland has abandoned the conviction that it is dependent on Russia and has changed the direction of the economic axis on which it wants to focus from now on to north-south.
Growth and Equality
Poland has demonstrated its economic ambitions for many years. Data collected by the International Monetary Fund show that between 1990 and 2020, Polish GDB grew by nearly 860%. This was the second-best result among the world’s 25 strongest economies. Only China performed better in this category. At the same time, economic growth in Poland is becoming more sustainable than ever. Based on the latest research, in the years 2004-2018 income gaps have decreased and in 2018 the Gini coefficient was lower for Poland than for other European countries, e.g. Germany or France. Most importantly, however, from an economic perspective, the EU-15 have not generated the same enormous economic growth as its relatively newer Member States. Polish GDP per capita in market prices of 2019 increased by 79% compared to 2004, compared to 22% for Germany and 11% for France. As such, Poland is now a developed economy with an ever-growing appetite and opportunities for high-paced development.
Investments and Immunity
Poland is a magnet for foreign investors. In 2021, it received a record-breaking inflow of direct foreign investments. In terms of investment value, Poland ranked third in the EU, after Germany and Sweden. Poland is in 16th place in terms of the aggregated value of foreign direct investments. According to the FDI Market report, Poland is the European leader in the number of jobs created as a result of foreign investments in the years 2019-2021.
Poland is certainly taking advantage of opportunities related to the necessity of shortening supply chains, and we are assuming responsibility for strengthening the immunity of the European economy.
War and Reconstruction
The European economy is going through hard times. The war declared by Russia is aimed at much more than just destroying Ukraine. The war targets all of Europe and its consequences will affect the whole world, which is exemplified by the highest inflation in 40 years reported in the USA. It is no secret that geographic proximity is essential. The war has curbed recent investor enthusiasm, but they quickly recovered from the shock since they are aware that Poland is a safe and good venue for implementing new initiatives. Now, it will also become a strategic country from the perspective of the new economic architecture in Europe and a gateway to the recovering Ukraine. This may not yet be clear, but we must believe that the firm position of countries in the free world will translate into victory over Russia, even if the sacrifice to be paid is a share in economic turbulence. The freedom and independence of Ukraine is at stake, and it is essential to restore peace and justice in the country.
Today, calculations take a backseat to defeating Russia and counteracting its future sinister intentions, and above all attempts to begin the reconstruction of Ukraine. As Ukraine recovers, free Europe will once again stand strong and Poland will not give up on its hopes and ambitions to become the economic driver of the continent. ©℗