Poland’s economy remains one of the strongest in the European Union (EU), even as contentious election reveals political tensions within the country. Karol Nawrocki from the conservative party won the June 1 election with 51% of the votes, beating out the left-leaning Rafal Trzaskowski.

Markets responded well to the election, with the exchange-traded fund remaining steady and the zloty increasing 0.5% against the dollar. The newly elected Nawrocki is expected to use his presidential power to derail Polish Prime Minister Donald Tusk’s pro-EU agenda.

The tight election divided the nation on social and cultural issues, but both candidates offered similar economic policies. “There has been a sort of Polish consensus no matter who is in charge,” says Mateusz Urban, a senior economist at Oxford Economics, per Barrons. “Lots of investment in infrastructure, openness to foreign direct investment, relatively business-friendly taxes.”

Over the last few decades, Poland has grown steadily as an economic power, gradually becoming less dependent on Germany and other European nations. Poland’s GDP has grown from 20% of United States’s levels in the 1990’s to 60% now, according to Barrons. Since joining the EU in 2004, Poland’s exports have more than tripled, according to the International Monetary Fund.

In the two decades after joining the EU, Poland has attracted over $310 billion in foreign investments, nearly half of the total brought in by the eight states that joined that same year. By investing the money in bridging Poland’s capital gap, advancing technology and creating jobs, Poland has been able to propel themselves forward.

Poland’s economy grew 2.9% last year, more than France, Germany and the United Kingdom, the three largest economies in the EU. The IMF predicts that Poland’s economy will grow 3.2% this year and 3.1% in 2026 before slowing to 2.7% growth in 2030. Average annual inflation in Poland will reach 4.1% in 2025, before slowing to 3.2% in 2026 and 2.7% in 2027, according to Reuters. 

Despite the positive growth, Poland is faced with the EU’s second largest fiscal deficit, which has been attributed to the social policies that could see change under new leadership. Increased defense spending in light of Russia’s invasion of Ukraine have also driven the fiscal deficit.

National politics are expected to play a role in the nation’s continued economic growth. “Poland is likely to face continued political polarization in the coming years, with the next general elections scheduled for 2027, potentially increasing reliance on expansionary fiscal policies and delaying fiscal consolidation,” Scope Ratings said, per Reuters.

Among credit managers with customer in Poland, 87% are established and 13% are new customers, according to FCIB Credit and Collections Survey. Customers are largely granted 1-30 day terms (75%) or 31-60 day terms (25%), with customers being 16 days beyond terms on average. These delays are largely attributed to cash flow issues (57%), billing disputes (43%) and supply chain issues (43%).

“Customer communication is important,” one respondent wrote. Another advised fellow credit managers to “watch payment trends with other suppliers.”

“Obtain updated credit information,” one respondent wrote. “Look for owner and addresses verification, as changes are often not communicated by the customer. Know all you can about the customer. Pull a credit report for payment history and legal status and name verification.”