16:54 13 April 2026
Report: defense spending in Poland not boosting GDP
Although Poland spends more on defense than any other NATO country relative to GDP, the economic impact is limited, according to the International Monetary Fund. Defense spending has risen sharply to about 4.5% of GDP, but around 80% of military equipment is imported, mainly from the U.S. and South Korea. As a result, much of the economic stimulus flows abroad rather than boosting domestic growth.
The IMF describes this as a “muted effect.” At the same time, higher defense spending has increased Poland’s public deficit and debt, influencing tighter monetary policy. While globally such spending can raise GDP by about 3%, Poland benefits less due to its heavy reliance on imports and limited domestic production capacity.
(pb.pl)
