Exports to the East assume growing importance

In Q1 2008 51% of exports went to the euro zone as compared to 54.6% in Q1 2007. Sales in the euro zone are not stagnating, as Q1 growth was 10.6% y/y.

The reason for the change is rather the pull of developing eastern markets, where exports are growing at an annual pace of 59.5%.

The East is attractive because of its large demand and comparitavely low competition. Also, "Because of the strong złoty, our meat is less competitive pricewise in Western Europe. Now it pays to export to the East and Far East where we can raise prices," said Maciej Duda of meat processing company PKM Duda.

Exports to Russia are growing the fastest and over the past year Poland's share of this market rose from 4.4% to 5.4%. The overall value of Polish products sold there rose by 44.8%.

Exports to Ukraine are also booming - sales of Polish goods rose by 36.7%. But there are clouds on the horizon and things might soon change as the Ukrainian economy is facing problems.

In the last quarter, Turkey also joined the group of important markets. The value of Polish products exported there rose by 68.2%.

Source: Puls Biznesu