2016: Poland is one of the biggest EU economies

Eurostat, EU’s statistical body, revealed GDP figures for 2016. Among the biggest contributors to the European Community’s economy is Poland. The country took the 8^th spot on the list, alongside such states as Sweden (7^th) and Belgium (9^th). The biggest EU economy is Germany, while the ranking is closed by Malta.

Last year, Polish economy generated 2.9 percent of the total GDP in the European Union. In comparison, Germany, the country with the most robust economy among the Member States, had a 21.2 percent share in the EU’s economic growth. Poland is a definite leader among the CEE countries. Czech Republic was ranked 14^th. Romania, another CEE country, was ranked 17^th. Eurozone generated 72 percent of EU’s GDP.

Polish Ministry of Finance recently announced its prognosis for Poland’s GDP growth in 2017 and upcoming years. This year, Polish economy will grow by 3.6 percent, while the growth in 2018 is to be even higher, 3.8 percent. In 2019 and 2020 the Ministry is expecting the economy to develop at the pace of 3.9 percent. Deputy Minister of Finance explained economic growth in Poland will be boosted thanks to consumer consumption and investment projects.

Meanwhile, according to International Monetary Fund, Polish economy in 2017 will grow by 3.3 percent and will increase by stable 3.2 percent in later years. Jerzy Kwieciński, Deputy Minister of Finance, said that the economy is thriving. Experts, on the other hand, say the Ministry of Finance is optimistic in their projections. They indicate is it difficult for a country like Poland to maintain stable economic growth through a several-year period.

Among positive factors affecting the economy is low unemployment rate. Currently, it is 8.5 percent. However, due to negative demographic trends and lowering of the retirement age, working-age population is going to shrink in the upcoming years. This will have negative impact on the economy. Experts also preview an increase of wages and consumer spending.

Implications for Banking and Business

Developments in the Polish banking sector affect businesses operating in the country in several ways. Access to corporate banking services, credit availability, deposit rates, and payment infrastructure are all critical factors for companies — whether established Polish firms or foreign-owned entities entering the market.

For foreign entrepreneurs setting up operations in Poland, choosing the right banking partner is a strategic decision. Major Polish banks including mBank, ING Bank Śląski, Bank Millennium, PKO BP, and Santander Poland offer varying levels of service for international clients, including English-language online banking, multicurrency accounts, and dedicated relationship managers for corporate clients.

The Polish banking market is well-regulated by the KNF (Financial Supervision Authority) and participates in the EU deposit guarantee scheme (BFG — Bank Guarantee Fund), providing deposit protection up to EUR 100,000 per depositor per institution. This regulatory framework provides stability and confidence for businesses maintaining corporate funds in Polish banks.

If you are doing business in Poland or considering entering the Polish market, Zalewski Consulting can help. Learn more about our investment advisory in Poland, or contact us for a free consultation.