Production costs on huge rise

Additionally, Europe has found itself in a difficult situation after the Russian aggression on Ukraine, since most countries of the Old Continent had been dependent on imports of goods from the East until then. Although Poland has not been affected to such a large extent, our economy is feeling the effects of the war just as other economies do. The most severe effect that Polish entrepreneurs mention frequently is the increase in business costs. Disruptions in the functioning of supply chains come second, and employment problems occupy the third position. However, Polish companies are flexible and quickly adapt to new conditions. This is evident from the results of Polish exports. In the first half of this year, the sales of Polish goods, expressed in euros, were 19.1% higher than the year before. Significant increases in export value were recorded by such industries as door and window joinery or the food sector. It is predicted that the collapse of trade with Russia and Ukraine will limit the growth of the trade volume, yet overall, Polish exports may grow by more than a dozen per cent y/y.

A phenomenon that alters the face of international trade is nearshoring, involving the shortening of supply chains through regionalization of processes and relocation thereof closer to main offices of companies. How can Polish businesses benefit from this? From Poland, one can deliver goods to most European cities within 24 hours, and to the entire continent – within 48 hours. This is a great opportunity for our entrepreneurs, including small and medium ones.

Marcin Graczyk
Director of the Department of Partnership and Communication
Polish Investment and Trade Agency (PAIH)