Poland's GDP. Andrzej Domański: energy and digital transformations will drive economic growth

The minister was a speaker on one of the panels on the first day of the ECE. He recalled that after 2023, when the economy was almost not growing (0.2% per year), Poland is now returning to where it belongs – to the fastest-growing EU countries.

He said that the Ministry of Finance estimates that this year the Polish economy will grow at a rate of 3.1 percent, and next year we will accelerate to 3.7 percent.

– This economic growth will be strong in the next two years. However, we still have many challenges. The first is, of course, the war in Ukraine; economic slowdown in Western Europe and the strengthening of the Polish zloty, which is a challenge for Polish exporters. But I am convinced that step by step the Polish economy will accelerate, said Domański.

According to the minister, the most important engines of economic growth in the country are still: internal consumption, salary increases and a growing minimum wage.

– It's time to turn on the next engine of economic growth. Investments are such an engine. This year, the investment pace will still be moderate, but already in 2025, with the absorption of EU funds from the KPO and thanks to the use of public and private financing, in our opinion, a significant investment impulse should be expected – he said. The head of the Ministry of Finance pointed out that the delay in adopting the KPO resulted in “clear macroeconomic consequences”. He said that Poland's GDP in 2023 was lower by PLN 25 billion due to the lack of funds from the National Reconstruction Plan. Domański emphasized that in recent years the investment rate had dropped below 17%. – In my opinion, this is a clear signal that not only public but also private investments have not been sufficiently involved in driving economic growth – he said.

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In Domański's opinion, the two main tools to drive economic growth in Poland in the coming years are the energy and digital transformations.

– Energy transformation can and must become a development vehicle for Poland. Scientific research shows that every zloty invested in the energy transformation brings more than a zloty of return on the investment, so we certainly have to move away from coal-based energy, Domański noted.

When it comes to digital transformation, the minister provided data showing that expenditure on research and development in Poland is approximately 30 percent lower. lower than the average for EU countries.

The challenge for Polish companies is, among others: low level of robotization of the Polish economy. – In Germany per 10 thousand We employ 256 machines and robots. Meanwhile, in Poland it is only 56. Therefore, we have a low level of machinery in the economy, which translates into lower employee productivity, which in turn translates into lower wages – said Domański. The head of the Ministry of Finance also spoke about the need to invest in new technologies, not in buildings and infrastructure. These last two categories constitute approximately 70 percent. of total investments in Poland, and in the EU – 43 percent. – We need to invest more in digitalization, intangible assets and legal assets. The Ministry of Finance will create favorable conditions for such investments, he announced. Domański recalled that Poland spends over 4 percent on security. GDP – the highest among all EU countries. – But I would like to say clearly – without a strong economy, Poland will not be safe – emphasized the Minister of Finance.