The GDP of culture: How much is culture worth to Poland?

This article is a part of Poland Unpacked. Weekly intelligence for decision-makers

As early as the 1950s, researchers had identified more than 150 definitions of culture. It is hardly surprising, then, that its economic significance can be examined from many different angles. Culture is not merely a sector of the economy that generates added value and creates jobs. It is also an area of spending for households and the state. It can influence economic development by shaping social norms, values and attitudes, while also enhancing a country's international appeal, supporting exports, tourism and investment.

How much does culture contribute to Poland's economy? How much do Poles spend on it, and how does that compare with other European Union countries? As Poland grows wealthier, will spending on culture increase? And, perhaps most importantly, could culture become a driver of long-term economic growth and strengthen Poland's international competitiveness?

These are the central questions we seek to answer in our report, The GDP of Culture: A Report on the Economic Value of Culture to Poland, produced in cooperation with Totalizator Sportowy, Poland's state-owned lottery operator. We will officially present the report to a wider audience today at the European Forum for New Ideas (EFNI) in Sopot.

Culture generates more than PLN 70bn in gross value added

The economic significance of culture is greater than one might expect. It encompasses not only theaters, museums and libraries but also advertising, architecture, publishing, and film and music production.

According to Statistics Poland's Culture Satellite Account, cultural activities generated PLN 63.2bn in gross value added (GVA) in 2021, accounting for 2.76% of the Polish economy's total GVA. Our estimates suggest that this figure rose to PLN 70.2bn in 2022, although culture's share of the economy declined to 2.54%.

How significant is this contribution? Between 2017 and 2020, culture accounted for an average of 2.87% of Poland's gross value added, almost identical to the shares of the energy sector (2.86%) and agriculture (2.84%). Its contribution was also greater than that of mining or accommodation and food services.

Interestingly, the largest contributions to gross value added within the cultural sector come not from traditional cultural institutions but from commercial activities. In 2021, advertising generated PLN 12bn in GVA, while audiovisual arts and multimedia contributed PLN 11.1bn. Together, they accounted for almost 37% of the cultural sector's total gross value added.

Poles spend less on culture than the average European

According to Eurostat, Poles allocated 2.1% of their total spending to cultural goods and services, compared with an EU average of 2.7%. The share was considerably higher in Denmark (3.9%), Germany (3.7%) and the Czech Republic (3.4%).

There are also differences in spending patterns. In Poland, fees and subscriptions accounted for as much as 31% of cultural expenditure, compared with an EU average of 21%. Meanwhile, just 5% of Polish cultural spending went toward direct participation in cultural and entertainment activities, against an EU average of 14%.

These figures should, however, be interpreted with caution, as they relate to the period around 2020, when the COVID-19 pandemic severely restricted the activities of many cultural institutions.

Will Poles spend more on culture as they grow wealthier?

One of the key factors shaping cultural expenditure is income. In countries where food, housing and other basic necessities account for a smaller share of household budgets, spending on culture generally tends to be higher.

In 2020, basic necessities accounted for around 57% of Polish household expenditure. Even so, the share devoted to culture was slightly higher than the relationship observed across other EU countries would suggest.

As incomes in Poland continue to rise, demand for cultural goods and services can therefore be expected to increase. However, this is not an automatic process – prices, access to cultural offerings and consumer preferences also play an important role.

Culture can shape long-term economic development

The economic significance of culture extends beyond gross value added, employment and consumption. Modern economics is paying increasing attention to culture in a broader sense – as a system of norms, values and beliefs that shape human behavior. In our report, we examine cultural traits such as individualism and patience.

One of the most extensively studied mechanisms is social trust. In societies with high levels of trust, economic cooperation may be easier, while businesses can face lower costs associated with monitoring their partners and enforcing contracts.

Research points to a positive relationship between social trust and GDP per capita. The Nordic countries stand out for their particularly high levels of trust. Some studies also suggest that this relationship is causal, although culture and economic development may influence each other in both directions.

From culture to international competitiveness

Culture can also support economic growth through soft power – a country's ability to build international appeal and influence through its culture, values and reputation.

South Korea offers a striking example. The global popularity of Korean music, films and television series has raised the country's profile and boosted recognition of its products. The benefits can therefore extend well beyond exports of cultural content itself, reaching sectors such as tourism, cosmetics, food and other consumer goods. Similar mechanisms can be observed in Europe, as illustrated by Scandinavian design and Italian luxury brands.

For Poland, this means that investment in cultural development could benefit not only those directly involved in the sector but also other parts of the economy. Culture is, after all, simultaneously an economic sector, a form of consumption and a factor that can shape a country's long-term economic development.

In 2022, Poland's cultural sector generated an estimated PLN 70.2bn in gross value added, accounting for 2.54% of the economy's total gross value added. Its contribution was comparable to that of agriculture or the energy sector.
Poles devote a smaller share of their spending to culture than the EU average (2.1% compared with 2.7% in 2020). Rising incomes could encourage greater spending on cultural goods and services.
Culture can be a fundamental driver of long-term economic development. By shaping social norms, values and attitudes, it influences trust, cooperation, entrepreneurship and innovation, thereby affecting economic productivity. At the same time, culture enhances a country's international appeal, supporting exports, tourism and business competitiveness.