The current economic situation of Małopolska

The first half of 2022 brought a number of serious challenges to the economy of Poland and Małopolska, having a very large impact on the conducted activity. First of all – the COVID-19 epidemic, the effects of which, especially resulting from previous restrictions and introduced solutions, may still be a burden for some time. Second – inflation. A significant increase in prices, which has its sources, inter alia, in terms of the increase in the prices of energy carriers, shows still strong growing dynamics. Rising inflation is a burdensome phenomenon affecting the operations of companies and their condition. Its growth is a problem for 92% of entities. Finally, the third source of possible challenges is the war in Ukraine. The war in Ukraine and its effects related to the introduction of the economic, resource, energy and financial embargo were felt by 67% of companies. Most of the group suffering from the negative impact of the war in Ukraine associate them with the shortage of raw materials and semi-finished products, while larger entities are slightly more affected by these shortages. The armed conflict in the neighboring country is, on the one hand, economic problems, and on the other – social challenges. Citizens of Ukraine visiting our country have the needs of, among others, in terms of the necessity to ensure equal access to public services, but also constitute a potential opportunity to employ, sometimes highly qualified, workforce, especially in the conditions of increasingly stronger own demographic problems. The voivodeship self-government will allocate approximately PLN 100 million under the Małopolska Humanitarian Shield (MTH) to support tasks related to the influx of war refugees from Ukraine. Aid activities are divided into packages (a package of non-governmental organizations, volunteering and cooperation with local government units, a labor market package, an education package, a transport package, a social package) corresponding to the most urgent needs of refugees and local governments.

The economy of Małopolska is undergoing a real test. The effects of the COVID-19 pandemic affected as many as 69% of Małopolska companies, regardless of their size, to a more or less equal extent (small enterprises – 67%, large enterprises – 66%). The financial problems of companies were a direct consequence of the pandemic, followed by related difficulties with disruption of supply chains. Companies operating in the trade, transport, accommodation, gastronomy and information sectors were the most affected by financial problems.

The Małopolska Region has implemented a number of actions / packages under the Małopolska Anti-Crisis Shield to prevent, diagnose, combat COVID-19 and eliminate the negative consequences of the pandemic in the Małopolskie Voivodeship, including:

  • MEDICAL PACKAGE – PLN 267.7 million for medical facilities for the purchase of equipment
    and equipment necessary to successfully fight the pandemic.
  • ENTREPRENEURSHIP PACKAGE – PLN 361 million for Małopolska entrepreneurs to maintain employment in companies struggling with financial difficulties and to support the labor market. It is also help for the self-employed.
  • FINANCIAL LIQUIDITY PACKAGE – PLN 111 million for liquidity loans for entrepreneurs who suffered financial losses as a result of the pandemic.
  • TOURIST LOAN – PLN 28 million for liquidity and investment loans for entrepreneurs who suffered financial losses as a result of the pandemic.

The most important economic data on Małopolska:

  • the current unemployment rate in Małopolska is 4.1% (in Kraków it is 2.5%), which puts the Małopolskie Region in third place in the country, behind the Wielkopolskie (2.7%) and Śląskie (3.8%) Regions
  • in 2021, foreign investments in Poland reached a record value of EUR 3.5 billion, and Małopolska ranks third in terms of the largest number of completed investment projects
  • in 2021, a record number of decisions on support under the Polish Investment Zone were issued – 68 decisions, worth 2.6 billion, generating over 1,100 jobs
  • the estimated revenues of Małopolska from tourism in 2021 amounted to PLN 10.81 billion.
    This is approx. 9.8% more than in 2020.
  • almost PLN 40 billion is the value of projects implemented in Małopolska with the support of European funds in 2014-2020

Moreover:

  • large market – 14 million people live within 120 minutes of the airport in Krakow, which accounts for over 38% of the Polish population
  • Kraków Airport – a regional airport – the second largest airport in Poland, which handled 3,072,074 passengers in 2021
  • in 2021, 22.2 km of dual carriageway roads and 152 pedestrian crossings were added, and the construction of 57.8 km of expressways S7 and S52 is underway. There are 28.3 km of dual carriageways under construction
  • among the strategic investments of Małopolska, the purchase of rolling stock should be emphasized: modern electric multiple units for the development of Małopolska railways (OPI & E 2014-2020, the project worth PLN 110.1 million consists in the purchase of 4 four-unit Elf2 type Electric Multiple Units with maintenance service for a period of 5 years) and the purchase of rolling stock to service agglomeration connections (the project worth PLN 245.7 million consists in the purchase of 9 four-unit electric multiple units of the Impuls2 type with a maintenance service for a period of 5 years
  • Małopolska is one of the leading Polish regions in terms of economic development. The region’s GDP is 8.1% of the country’s GDP. Małopolska ranks 4th among Polish regions in terms of contribution to the national GDP
  • 1.5 million economically active people
  • 453.3 thousand. national economy entities operating in Małopolska – 4th place in Poland – including nearly 4,000 exporting companies
  • The most important export products of Małopolska concern the following sectors: electromechanical, automotive and chemical
  • Average monthly gross salary in the enterprise sector in Małopolska – over PLN 6,700, in Kraków over PLN 8,000,
  • Corporate income tax – CIT 19% or 9% (from January 2022 for small taxpayers)
  • Nearly 147 thousand students and over 36.5 thousand graduates
  • Financial outlays on R&D place the region in second place in the country – PLN 4.6 billion
  • 45 innovation and entrepreneurship support centers – 5th place in the country
  • Małopolska (in 2021) ranks 3rd in the country in terms of both reported inventions and granted patents.