After three decades of development successes, Poland has become one of the driving forces of the European economy. Integration into European value chains, a dynamic manufacturing sector and competitive labor costs combined with a highly skilled workforce were among the factors that transformed a failed central planning system into a vibrant $1 trillion economy. GDP per capita adjusted for purchasing power parity increased to over 80% last year. the EU average from just above 40%. in 1990. Equally important, according to Eurostat data Poland ranks seventh in Europe in terms of the lowest inequality in disposable income and has the ninth lowest percentage of people at risk of poverty.
Poland stands at a crossroads today
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Nevertheless, like the rest of Europe, Poland stands at a crossroads today. Accelerating technological changes and the increasing effects of climate change, an aging society and a new geopolitical context provide an urgent call to action. New policies implemented in the coming years will determine Poland's success in the coming decades. To achieve productivity growth in a time of rapid change, Poland must focus on increasing investment, innovation and technology implementation – three areas in which it has recently not performed as well as many of its European and global partners.
There are many possibilities: first, as the World Bank's National Climate and Development Report for Poland from 2024 shows, Poland can make massive investments in the transformation towards cleaner and more competitive energy sources. Secondly, due to the well-developed competences of employees and their simultaneous shortage, Poland is an ideal candidate to accelerate digitalization and strive to become a leader in the field of AI. Third, it can leverage its position at the center of an enlarged and more autonomous Europe, attracting new regional and global value chains in areas such as semiconductors, e-mobility and clean technology production, and gaining importance as gate for reconstruction of Ukraine.
Strengthening investments, innovations, technology implementation – how to do it?
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In the World Bank's new flagship report “TIDES of Change: Igniting Productivity Growth in Europe and Central Asia” (Waves of change – Strengthening productivity growth in Europe and Central Asia) we highlight how countries in the region can achieve higher productivity by focusing on the titular “TIDES” areas: Trade (Trade) – deepening integration to move up the value chain; ANDinvestments – mobilizing private capital, attracting foreign direct investment and strengthening connections with domestic suppliers; Digitization (Digitalization – popularization and more intensive use of cloud services, data and artificial intelligence; Eefficiency – removing market distortions that retain resources in low-productivity companies, and creating conditions in which young productive companies can enter the market, develop and replace less efficient ones; and Skills (Skills), including building basic and managerial skills.
Poland must develop efficiency
It remains crucial for Poland to continue progress in all five “TIDES” areas, with particular emphasis on “E” for Efficiency. The Polish market economy is still young and undergoing transformation. In addition to focusing on large, well-operating State Treasury companies, which often face restrictions when taking risks and investment decisions due to their political mandate, and on small and medium-sized companies, which are often family-owned and in the hands of the first or second generation of founders, Poland must support the development of medium-sized “champions” with institutional corporate governance, long-term sustainable development strategies and the ability to compete in global markets.
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Poland's priorities for 2026 and beyond should also include the mobilization of private capital. The year 2025 brought visible progress in this field thanks to initiatives such as Innovate Poland, Team Poland and others. The World Bank Group also played a role, through equity investments and debt financing through the International Finance Corporation (IFC), the private sector investing arm of the World Bank.
However, financing is not enough. For private investments to flow in a sustainable manner, we should also focus on strengthening the competitiveness of markets and creating new ones. A more competitive energy infrastructure will help attract investmentand more effective and better coordinated investment and innovation policies and institutions will help target them where they are most needed. By strategically using public procurement, the public and state sectors could accelerate digitalization and create new markets for technology start-ups and green value chains. The implementation of proven models of public-private cooperation in the area of infrastructure could attract global competences, accelerate innovation and strengthen Poland's position on the market map of global investors. At the same time, Poland will also have to focus on the transformation of jobs and employee skills, increasing the labor force participation rate through better health care and long-term care for older peoplecreating career opportunities in less developed regions of the country, building resilience and ensuring that the dividends of growth reach all citizens.
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At the World Bank Group, we look forward to an exciting year 2026 in our constantly strengthening cooperation with Poland. For our part, we bring global knowledge, the role of an integrator and impartial intermediary, and the ability to combine analyses, public policies and private investments that catalyze development. Whereas Thanks to Poland, we can create a laboratory of innovation in the area of developmentjointly developing new policies and solutions that can benefit other member countries, while supporting Poland's ambitions to play an increasingly important role in international development. A true partnership that benefits both parties.
