In 2021, public expenditure per capita in Poland for the first time exceeded the amount of PLN 30,000. It accounted for 44.2% of GDP – less than the year before when the pandemic hit, but still much more than in 2019. Since 2015, public spending in Poland has increased in real terms by over 35%.
The war in Ukraine will affect Poland’s socio-economic situation through many channels both in the short and long term. In the near term, we face weakening economic growth and even higher inflation, even double-digit inflation.
In response to Russia’s invasion of Ukraine, the Polish Law and Justice government began to work on creating two new funds in the state-owned Bank Gospodarstwa Krajowego to finance “systemic aid” and additional military spending.
