Poland has left behind its reputation as a poorer neighbor to the east. Its recent economic growth has outpaced Germany’s and is attracting businesses and people from across the border, according to the report.
Economist Marcin Piątkowski of Kozminski University in Warsaw describes Poland as Europe’s fastest-growing economy over the past 40 years. The figures cited show Polish growth of 3% in 2024, when Germany was in recession, followed by 3.6% in 2025. Germany’s economy grew by 0.2% that year.
Around 6,000 German companies now operate in Poland, where they have invested about €50 billion, the report says. One example is the German manufacturer Dr. Schumacher: although its headquarters remain in Hesse, its production hub is in Lubań, where 1,200 employees make up to 500 million packs of wet and disinfectant wipes for global brands.
Company director Paul Stanek points to the speed of expansion as an advantage. He says building a new production hall in Poland can take one to one and a half years, compared with a wait of three years for approval in Germany. Piątkowski says investors are increasingly drawn not just by lower wages, but by workforce quality and employees’ drive to advance.
Poland also uses tax incentives to encourage work. Employees under 26 pay no income tax up to an annual limit of around €20,000. A proposal under discussion would provide tax relief for families with at least two children, potentially exempting household income up to about €65,000 if both parents work and earn the same amount. First-time home buyers are also exempt from property transfer tax, according to real estate agent David Lis.
These incentives are part of a broader shift in migration between the countries. In 2024, nearly 91,000 people moved from Germany to Poland, while 82,000 moved in the opposite direction, leaving a net movement of 9,000 people to Poland. Warsaw-based lawyer Philip Panek, who grew up and studied in Germany, says a decent salary and a good standard of living are now attainable there.
Digital services and infrastructure are other draws. Poland’s government app can be used for tasks including identification with public offices, banks and notaries, company registration, prescriptions and opening bank accounts. Lars Gutheil, head of the German-Polish Chamber of Industry and Commerce in Warsaw, says most administrative procedures can now be handled entirely online.
Poland has also expanded its main-road network by more than 4,000 kilometers over the past two decades. The report attributes the pace partly to a process that combines planning, construction and permits in one contract, allowing work to proceed in parallel.
The country is planning a major airport between Warsaw and Łódź, alongside a broad modernization of rail infrastructure. The government’s “100 minutes” goal is for the airport to be reachable by train from anywhere in Poland within that time, Gutheil says.
Sources: Tagesschau.