The increase in Polish defense spending, aimed at supporting NATO, is raising concerns about Poland’s state budget. According to NATO estimates, Poland, Central Europe’s largest economy, is expected to lead NATO countries in defense spending relative to GDP for the second time in 2024, with $35 billion allocated for military needs.
However, these military expenses are significantly straining Poland’s budget, which is anticipated by the Polish government to run a $10 billion deficit this year — roughly the amount Warsaw plans to spend on acquiring 96 American Apache attack helicopters. Additionally, Poland’s national debt currently stands at around 50% of GDP. With the rise in defense spending, the Fitch Solutions credit rating agency emphasizes the importance of Poland implementing a credible medium-term plan to reduce its budget deficit and stabilize its debt level.
S&P Global, however, has pointed out that the 2025 presidential election and potential deviations from “ambitious revenue forecasts” could complicate Warsaw’s efforts to meet the EU’s financial goals.
Translated and edited by Alex Kada
