The first effects of 500+: revived market, increased profits and sales in many industries

The programme of state aid for Polish families has just started but its first effects are already here: Poles buy more equipment, goods, and visit shopping centres more often.

The Family 500 plus programme is a systemic support for Polish families. According to the project, aid is available for parents and guardians of children up to 18 years old. A family with two underage children will be able to receive 500 PLN for the second and further child regardless of their income. For families with income below 800 PLN per person, aid will be available also for the first or only child.

Money from the Family 500 plus programme caused a revival in trade. According to the data of the Committee of Domestic Equipment Manufacturers CECED, the sales of white goods in May spiked as much as 11 percent. In the same month, the number of shopping centre clients increased as well: it was as much as 13 percent higher than in the previous month.

Sellers of electronics in Poland, who noticed a definite growth in sales in April and May of the current year hope the effect is not just temporary.

Shopping chains more and more often address their special offers right to families, cutting down prices of both basic products as well as those bought for special occasions with them in mind. This proves effective – very good results come from shopping centres too.

FootFall Indeks Polska research show that in May there was recorded the biggest increase of the number of clients this year. The results augmented by over 13 percent compared with April. Year by year comparison indicated an increase of over 7 percent.

Positive signals also come from clothing market, food market, jewellers and furniture stores. According to the survey of IBRiS for „Rzeczpospolita”, 59 percent of Poles has a favourable opinion on the Family 500 plus programme, while 37 percent of survey takers criticizes it.

The revenue of Biedronka, the biggest grocery store chain in Poland, in the first half of 2016 grew by 9.8 percent. The second quarter, when the 500+ money started to reach Polish homes, was for the discount giant just excellent. The discount store reached over 10 percent growth in comparison with analogous previous period.

GDP in the next quarters will speed up thanks to, among other things, pay-outs from the “Family 500+” programme, and from the second half of 2017 will stabilize at around 3.3 percent, as the projection of inflation and GDP presented by National Bank of Poland indicates.

According to the NBP in the projection perspective consumption will remain the driver of growth. The effects of the “Family 500+” programme according to Kamil Maliszewski, an analyst of mBank brokerage house, will be the most noticeable soon.

According to the NBP’s prognosis, the growth of individual consumption in the entire perspective of the projection will be fortified by further positive movements on the labour market, reflected by speeding dynamics of salaries and gradual further lowering of the unemployment rate.

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 bank account opening services, or contact us for a free consultation.