The best kept secret in Europe: Poland, the economic tiger of the region

Nothing seems to be brought on the path that Poland is strengthened despite being part of the slow European Union. There are multiple reasons why and many facets, including the excellent defense expense of the country and its conservative approach to Donald Trump for illicit immigration.

At the end of last month, it is estimated that Poland’s economy grew by 2.9% last year, according to the country’s office. This performance intensifies the single currency area in Europe, also known as Eurozone, for more than three times; It extended only 0.7% during the same period.

The growth of Poland also exceeded the USA, which grew a solid 2.5% in the 12 months until December.

“The last year or two has seen a boom, and is receiving advertising,” says Mateusz Urban, senior economist of Oxford Economics in Warsaw, Poland, Fox Business. “There is really a European tiger right at the door of Germany.”

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Consumers walk through a shopping center in Warsaw, the capital of Poland, July 4, 2024. (Dominika Zarzyckka / Nurphoto through Getty Images / Getty Images)

This is not a unique event. By 2024, the economy of Poland had grown 11 times larger than in 1986. That considerably exceeds the United States, which grew its economy to be six times larger during the same period, according to data from the commercial economy.

Urban says that a large part of Poland’s rapid growth implied the unlocking of human capital after the collapse of the Soviet Union. During the many decades of government of the USSR, the Government dedicated a lot of effort to educating people in mathematics, science and engineering, and the continuous impact of these universities and schools is still highly appreciated.

“These types of institutions have a lasting legacy,” Urban said. “After 1989, Poland inherited a fairly organized system that managed to produce a good number of specialists in mechanical engineering and information technology.”

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That approach to science, technology, engineering and mathematics helped the country to build an impressive technological sector that is estimated to be $ 32 billion, or 4.5% of the economy this year, according to the Intelligence Research Company Mordor

Poles workers are also “very workers, with high standards and cheaper to use than people in the United Kingdom,” Brown Brown Brothers Harriman’s markets told Fox Business Elias Elias Elias Elias Elias Elias Elias Elias Elias Elias Elias Elias Elias Elias Elias Elias Elias Elias Haddad, Brown Brown Brothers Harriman markets in London.

Another factor that Poland is benefiting is the appointment of EU veteran Donald Tusk as prime minister in December 2023. Before him, the party of the Polish law and justice, led by Mateusz Jakub Morawiecki, had been sanctioned by The European Commission (EC) due to the belief that the Judicial Power of Poland was not independent of the government.

“The party did not respect some of the EU rules,” says Haddad.

The White and Red National Flag of Poland and the flag of the European Union in Brandenburg. (Patrick Pleul / Picture Alliance through Getty Images / Getty Images)

The result was that the EC delayed EU funds aimed at helping Poland. But now with Tusk firmly in the hot seat, EU’s money should be released, giving the economy another impulse.

While the country is growing fast, it is also on the first line of NATO, the Military Alliance founded after World War II, which borders Ukraine. The country is expected to spend 4.7% of its GDP in defense this year, which is a percentage greater than any other NATO member, and also opened the way in 2024.

“We are aware that Germany will not be able to rescue Poland,” says Urban. “That is why the government is pushing expenditure to about 5% of GDP.”

For decades, Germany could not achieve your NATO commitment to spend at least 2% of GDP in defense, according to the World Bank. In 2024, it reached 2.1%.

Although Poland has responded positively to the Ukraine-Russian war during that time, it has also acquired a burden of more than 7 million refugees in Ukraine.

“From the war, we become an attractive place for immigration and refugees,” Marcin Klucznik, the main advisor of the World Economy team at the Polish Economic Institute, told Fox Business.

A man uses a “do great part” cap while attending the march of independence that celebrates the 106th anniversary of Poland that recovers independence in Warsaw, Poland, on November 11, 2024. (Batata Zawrzel / Nurphoto through Getty Images / Getty Images)

However, this massive influx has led to discussions about who wants to attract his country, says Klucznik. Last month, Rafał Trzawski, candidate for the presidency of Poland, asked the Government to stop paying the so -called children’s benefits subsidies to Ukrainians with children but who are not officially working. He has declared that only those who work and pay their taxes should receive help from the State.

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Klucznik said the country is conservative and cautious with its immigration policy.

“We are aware of some of the mistakes made by other European countries such as Germany, France and the United Kingdom, and we want to avoid some of that,” he said.

In particular, these three large countries have not been able to get many immigrants to integrate completely into local culture.