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Have Gdańsk and Kraków become richer than Warsaw?

09.05.2024 21:30
New data suggests that Warsaw is no longer the wealthiest city in Poland. 
Gdańsk - now the richest city in Poland.
Gdańsk - now the richest city in Poland. Photo: Kedłos - Praca własna, CC BY-SA 4.0

Practically from the beginning of the democratic and free-market transformation of Poland, it has seemed that Warsaw was destined to be the wealthiest city, indeed to lead the way in terms of economic and even civilisational development.  

Now 2023 data from Statistics Poland, the national data centre (GUS), suggests that Gdańsk and Kraków have overtaken Warsaw and Katowice is not far behind:

Gross average earnings in Polish cities in 2023:

1. Gdańsk: 9904 PLN

2. Kraków: 9742 PLN

3. Warsaw: 9519 PLN  

4. Katowice: 9177 PLN

Warsaw still has a sizeable lead when it comes to the number of millionaires - 4870 to second place Kraków's 3005 (with Poznań third but a long way off with 1329 millionaires). 

GUS's data has been presented by a few outlets but perhaps the potential economic sea change has not yet sunk in.

Katarzyna Pełczyńska-Nałęcz, the Minister of Development Funds and Regional Policy, recalled on Twitter last month that (larger) Polish cities have developed faster than small towns and rural areas, suggesting that the speed of Poland's development is responsible for Poland's high level of wealth polarisation (3rd place in OECD countries):

However, Poland's high level of economic polarisation has perhaps been a more troubling social and political factor than the minister suggests. Experts such as the left-wing economist Thomas Piketty have been arguing that extreme polarisation strengthens anti-democratic forces (note the constitutional crisis in Poland) and the last government's flagship child support/wealth redistribution program "500+" has been credited with reducing poverty - as well as contributing to two terms of PiS rule.   

In 2023, following the general election, the frequently mentioned historical background to Poland's economic, social and political differences was still valid, for example as discussed in this analysis from Onet. The article is entitled "The partition of Poland is still visible on the electoral map. When will it disappear? Generations needed."

The Partition of Poland was the period from 1772 to 1918 when Poland was divided between three neighbouring empires.

The east of Poland was under Russia and has been, with the exception of Warsaw a poorer, less-developed region that voted for Law and Justice. Rzeszów has become an exception, placed 8th in the 2023 data with only around 20% lower average earnings than Warsaw. (10 years ago Białystok was also higher ranked for average earnings.)

The west, formerly governed by Prussia - including today's Poznań and Wrocław - has been a staunch opponent of Law and Justice and Gdańsk (once a "free city"), would usually be included here. The south - formerly under the Austro-Hungarian Empire - has been a split case.

Polish sayings do impute proverbial business acumen to the inhabitants of the west and south: to strike a "Kraków bargain" means to split the difference in a negotiation 50-50 and the founding fathers of Poznań are sometimes said jokingly to have been a group of Scots expelled from Scotland for being too tight-fisted. (On the other hand "Warszawka" is a term of abuse for Warsaw inhabitants, suggesting that Warsaw is a kind of economic and social clique.) 

With Gdańsk and Kraków taking places 1 and 2 for average earnings in 2023 and Warsaw only just making it onto the podium, there may be some truth to these sayings. 

Sources: Wprost, Statistics Poland, Onet, X

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