Poland’s Economic Miracle Faces New Challenges
Alexis Karklins-Marchay, Partner at Eight Advisory, was invited on BFM Business TV to analyse the key factors that have enabled Poland to emerge as one of Europe’s most dynamic economies, while also highlighting the challenges that could weigh on its future growth.
Currently ranked as the sixth-largest economy in Europe, Poland is expected to record a growth rate of 3.7% in 2025, confirming its exceptional development. GDP per capita has doubled since 2005and is now approaching a level comparable to that of Japan and close to that of France.
“Poland has written a remarkable growth story since the beginning of the century. There hasn’t been a single year of recession since 2000, apart from the Covid year.” — Alexis Karklins-Marchay, Partner at Eight Advisory.
This remarkable performance is due to structural advantages: a well-educated population, competitive labour costs, a diversified industrial base, a favourable environment for innovation and technology, as well as a high attractiveness for foreign investors. Poland’s reindustrialisation combined with modernisation, which has been supported by EU funds since its accession in 2004, has transformed the country’s economy.
“The country made a decisive shift towards a market economy and implemented reforms at remarkable speed. While the early years were challenging, marked by inflation and significant job losses as many roles from the former communist system became obsolete, the transition has delivered lasting benefits. Today, Poland offers a highly attractive entrepreneurial environment, supported by a favourable tax framework and modern, upgraded infrastructure.” — Alexis Karklins-Marchay.
However, some weaknesses remain. The country is struggling with a labour shortage due to a shrinking population, persistently high inflation and, despite recent improvements, an inadequately functioning healthcare system. In addition, massive investments in defence, healthcare and the energy transition are putting a strain on public finances. Poland’s budget deficit has risen to over 6% of GDP and, according to the OECD, fiscal adjustments will be necessary in the coming years in order to maintain long-term economic stability
Watch the replay of this BFM Business TV interview from 2 June 2025 (available in French)
