17:39 24 February 2025
Citi: reconstruction of Ukraine will add less than 0.2 points to Poland’s GDP
The reconstruction of Ukraine's economy is expected to contribute less than 0.2 percentage points to Poland’s annual GDP growth, assuming total rebuilding costs of $300 billion, according to Citi economists. While a ceasefire would boost Ukraine’s economy and have a positive spillover effect on neighboring countries like Poland, the macroeconomic impact would be limited.
A third of the reconstruction funds would go to foreign firms, with contracts distributed based on each country’s support for Ukraine. However, if peace agreements are signed under unfavorable conditions for Ukraine, Poland and other regional countries may face higher defense spending, worsening long-term fiscal stability and potentially leading to tax increases. Short-term economic benefits may be offset by long-term financial risks.
(pb.pl)
