Polish exports collapsed: Germany reduces purchases, economy loses
Polish exports to Germany have dropped sharply, which will negatively impact the domestic economy. The largest recipient of our goods reduced purchases, and other markets did not make up for the losses.
Making the economy dependent on one key trading partner may have negative consequences, especially when cooperation suddenly weakens. This is currently the case with Polish exports to Germany, which will directly affect the condition of the Polish economy. The decline in exports will translate into GDP data and budget plans. It is worth noting that despite the crisis in trade with our largest recipient, we have recorded export growth mainly in countries outside the European Union.
According to data from the Central Statistical Office, in August 2023, Polish exports decreased by 4.6%. compared to the same period a year earlier, which means that its value was lower by EUR 1.2 billion. The total value of exports amounted to EUR 26.02 billion, which is the worst result since December last year. Such a decline may have a negative impact on Poland’s GDP for the third quarter and may force the government to change its tax revenue forecasts.
The most serious losses were recorded in exports to Germany. Our largest trading partner reduced purchases of Polish products by 10.9%. compared to August 2022. The value of exports to Germany amounted to EUR 6.94 billion, which is EUR 849 million less than a year earlier. Germany’s share in Polish exports dropped from 28% to 6%. to 26.7%. This situation is, among others, as a result of German companies closing factories located in Poland.
Despite a significant increase in exports to Ukraine, where an increase of 17.7% was recorded. (EUR 167 million more than a year earlier), this did not compensate for the losses resulting from lower sales to Germany.
Export problems also affected other markets, although on a smaller scale. The value of exports to Russia and Italy decreased by 9 percent, respectively. and 29.5%, which translated into losses of EUR 89 million. The situation was similar in Mexico (-36.1%, i.e. EUR 84 million less), Belgium (-12.4%, EUR 79 million less) and Sweden (-10.4%, EUR 68 million less).