Poland says it lost about €113.5bn due to war in Ukraine

Poland's Statistics Office has reported that the country incurred losses of more than PLN 490 billion (about €113.5 billion) in connection with the war in Ukraine.

Source: Polish newspaper Rzeczpospolita, as reported by European Pravda

Details: Analysts from Poland's Statistics Office calculated that the household sector suffered the greatest losses as a result of the Russian invasion of Ukraine. Its losses amounted to PLN 292.1 billion (€67 billion). The business sector, meanwhile, lost PLN 126 billion (€29 billion), while the government and local government sector lost PLN 72 billion (€16.5 billion).

The calculations cover the four years of the war in Ukraine from 2022 to 2025. Total losses over this period were estimated at PLN 490.1 billion. This amounts to about 3.5% of Poland's combined GDP for 2022-2025.

The Statistics Office took into account, among other things, the scale of aid provided to Ukraine and Ukrainians, the situation on the labour market, and changes in the economy and demographics. It also analysed Poles' attitudes and the impact of the war and the influx of refugees into Poland on households and businesses.

As Statistics Office head Marek Cierpiał-Wolan explained, the calculations also included the loss of households' purchasing power due to slower wage growth following Russia's full-scale invasion of Ukraine, opportunity costs related to the defence budget, and the decline in gross value added in Polish industry.

Regarding the latter, statisticians highlighted the significant impact of the war in Ukraine on Poland's construction sector. The decline in gross value added in this part of the economy was estimated at PLN 120.9 billion (€27.9 billion).

The start of the war also led to higher material prices, with non-ferrous metals, crushed stone, glass, cement, asphalt, steel and plastics becoming more expensive.

Background:

• Recently, Polish Prime Minister Donald Tusk said there are signs that Russia is seriously preparing for an escalation and that the next seven to eight months could be critical for the security of Ukraine, Poland and the entire region.
• Earlier, Polish President Karol Nawrocki said that he believes support for Kyiv in its fight against Russian aggression should continue because Ukraine's success is in Poland's strategic interests.

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