Poland’s Economic Rise: From Soviet Legacy to Tech Hub

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Over four decades since regaining independence from Soviet rule, Poland has transformed. Incomes have converged with western levels at the fastest rate in the world—rising from 40% of the EU average in the mid-1990s to 81% last year. Source: theguardian.com.

From Communist Struggles to Economic Growth

For years, many Poles emigrated abroad to earn more. This brain drain intensified with EU membership. Polish plumbers became a symbol of foreign labour in Britain during Brexit debates.

Now, most British taps are fixed by Romanians and Bulgarians. Since 2021, twice as many Poles left the UK as arrived each year.

Germany saw more non-Germans move to Poland in 2024 than moved from it—marking the first time on record.

Returnees and a New Work Culture

On the 44th floor of the Varso tower, Jedrzej Kolesinski and Krzysztof Gornicki are returnees. Both worked in London’s Foster + Partners before leading the design of the tower.

Poland has changed dramatically during their absence. Gornicki wants to return to contribute. Raising a family near his parents in a safe, green city—more affordable than London—is a key reason.

They now design Warsaw’s new airport, the largest greenfield project in Europe.

‘You can work globally from one location. In London we worked on projects from North America to Asia. Now we do the same—just from Warsaw.’

Urban Transformation in Warsaw

On the streets below the Varso, progress is clear. Electric trams glide past skyscrapers. Cranes, e-scooters, and giant ads mark modern development.

Traditional milk bars still serve beetroot soup and dumplings. But Prasowy, the oldest, now takes orders on a digital screen.

Once a Soviet tank field, the old Parade Square has been greened. Plans continue to support Warsaw’s 2040 Olympic bid.

Costs and Inequalities Rise

Since 2004, Poland’s average monthly wage has more than tripled. Warsaw’s net salary rose 120% since 2016—surpassing Rome and Lisbon.

A meal for two now costs more than in Tokyo. A cappuccino price has doubled.

Income inequality remains high. Political divisions are growing, setting the stage for a tense election next year.

Poland’s Economic Position

Poland ranks among the world’s top 20 economies. The International Monetary Fund projects per capita income will soon overtake Japan and Spain.

Labour costs average €19.10 per hour—still half of Germany and France’s. But the gap is closing.

From Low-Cost Hub to Tech Leader

Poland’s skilled workforce attracted firms like Volkswagen, Cadbury, and JP Morgan. These companies built factories and opened support centres.

Rafał Brzoska, founder of InPost, says Poles deserve their reputation as hard workers. But now the focus must shift to productivity, not just wages.

‘The next phase depends less on catching up and more on productivity. We don’t have a labour cost advantage. We need better technology, cheaper energy, and smarter regulation.’

He is concerned about political tensions. Divisions between the president and the prime minister have grown increasingly acrimonious. Far-right parties now hold a fifth of public support.

Poland is investing heavily in defence and energy security—aiming to boost growth amid global shifts.

‘People may believe in a magic fix. But there is no such thing. We must work hard—unfortunately, for all of us.’

Poland is building a regional tech hub. A fund backed by public and private capital supports AI startups and tech firms. High-growth firms are rising.

Poland ranks equal to the UK in Pisa maths scores. More adults have higher education than in Germany—giving strong foundations for growth.

From Ambition to Confidence

CD Projekt Red began in the 1990s as a US CD game importer. It now develops global hits like The Witcher and Cyberpunk 2077.

Michał Nowakowski, co-chief executive, recalls a time of deep inferiority. In the 1980s, his family was expelled during martial law. He visited London at 15 and was ‘blown away’ by British culture.

He says today’s youth have no such doubts. They don’t compare themselves to Brits or French or Spaniards.

‘We have strong universities and skills training. This can take us to unprecedented heights. We’re a proper-sized country—no inferiority complex. Nothing holds us back.’

Despite progress, challenges remain. Rising costs, inequality, and political divisions must be addressed. The future depends on productivity, not just wages. Poland’s story is one of resilience. It has turned a Soviet-era legacy into a modern, dynamic economy. But its future will depend on how well it balances growth with equity and stability.

For more on Warsaw’s history, see the history of Warsaw’s Palace of Culture.

Sources & further reading

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