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In 2025, Poland stands out as one of Eastern Europe’s fastest-growing economies, combining strong domestic demand with robust investment activity. While economic momentum remains impressive, rising fiscal imbalances are increasingly challenging the country’s long-term stability.
Eastern Europe’s growth leader
Poland’s GDP is forecast to grow by 3.2% in 2025, placing the country among the fastest-growing economies in the European Union. Growth is primarily driven by strong private consumption and investment, with a significant share of capital spending financed by European Union funds aimed at infrastructure upgrades and industrial development.
Labor market strength
The Polish labor market remains exceptionally tight, with unemployment projected at just 3.1%. High employment supports household spending and reinforces economic expansion. At the same time, strong labor market conditions increase fiscal pressure through rising social expenditures.
Fiscal discipline under pressure
Despite rapid growth, Poland faces mounting fiscal challenges. The government budget deficit is expected to reach 6.8% of GDP, raising concerns over fiscal discipline. Expanding social programs and tax reductions have driven public spending higher, increasing the risk of future economic instability if fiscal balances are not restored.
Living standards and social gaps
Although Poland’s economy is expanding quickly, social indicators remain mixed. Life expectancy remains below Western European levels, averaging around 78 years for men and 82 years for women. Poverty continues to affect parts of the population, particularly in rural areas, limiting the inclusive impact of economic growth.
As reported by International Investment experts, Poland in 2025 combines strong economic growth with rising fiscal risks. Sustaining long-term progress will require restoring budget discipline while ensuring that investment-led growth translates into broader social and economic benefits.