Poland's Public Debt Reaches New Heights Amid Economic Challenges
Warsaw, Thursday, 24 April 2025.
As of April 2025, Poland’s public debt exceeds 2 trillion zloty, highlighting significant economic challenges and concerns over fiscal sustainability in line with EU limits.
Historic Debt Levels Amidst Economic Pressures
As of April 2025, Poland’s public debt surpasses 2 trillion zloty, marking a significant economic milestone and raising concerns about fiscal sustainability. This unprecedented level of debt highlights the growing financial strain Poland faces in aligning with the European Union’s fiscal regulations, particularly the limit on national debt, which should not exceed 60% of GDP according to EU standards [1][4].
Growth of Public Debt and Economic Indicators
The nominal rise of over 320 billion zloty year-on-year in 2024 represents the highest increase on record, pushing the debt-to-GDP ratio to 55.3%, up from 49.5% in 2023. This escalation in public borrowing was driven by increased expenditures on defense and infrastructure investments, areas seen as vital in the government’s long-term growth strategy [1][2][3]. By comparison, the broader EU saw its government debt-to-GDP ratio only slightly increase to 81.0% as of the end of 2024 [4].
EU Limits and the Deficit Dilemma
Poland’s budget deficit, recorded at 6.6% of GDP in 2024, was the second highest in the EU, surpassed only by Romania’s 9.3% deficit. This places Poland among the countries actively monitored for fiscal stability by EU regulators as it strives to reduce its deficit below the EU’s stipulated 3% threshold by the deadline of 2030 [1][5]. In contrast, the EU average budget deficit was at 3.1% in 2024 [4].
Government Responses and Future Projections
In response to the growing debt crisis, Poland’s government unveiled plans in October 2024 to rectify the fiscal imbalance by targeting a deficit reduction to below 3% by 2030 [1]. With forecasts predicting a public debt-to-GDP ratio increase to 57.7% by 2025, the Polish administration underscores its commitment to fiscal reforms and economic resilience, aiming for sustainable growth within the EU framework [1][3].