Over the next 10 years, Poland's public debt can scope a dangerous 95% of GDP. Experts inform that without immediate reforms of public finances, the country may be in a major crisis.
The deficit is increasing despite economical growth
According to the latest study on the threat of excessive public debt by economists Sławomir Dudek, Piotr Kalisz and Ludwik Kotecki, Poland has entered the "dangerous fiscal path". In 2024, the general government deficit was up to 6.6% of GDP, despite the comparatively good economical situation.
– This is the end of illusions: serious fiscal clouds are gathering, and they cannot be solved with words – stressed Dr Sławomir Dudek, president of the Institute of Public Finance, in an interview with “Rzeczpospolita”.
Poland in the EU's disgraceful top
The expert notes that Poland has:
- second highest deficit in the European Union,
- second highest debt handling costs,
- very advanced debt dynamics.
If the trend continues, within a decade the public debt may approach 95% of GDP, which will put Poland among the countries with the biggest fiscal problems.
Time for improvement – next day may be besides late
Experts call for immediate corrective action, including reducing public spending and expanding the efficiency of the taxation system. Without decisive steps Poland can find itself in a situation where the costs of servicing debt will importantly reduce the investment opportunities of the state.
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Poland on the brink of the financial crisis – experts beat the alarm
