17:10 6 March 2025
German spending may boost Polish exports
Germany’s planned EUR 500 billion infrastructure investment and EUR 400 billion in defense spending could lift its stagnating economy and benefit Polish exports, particularly in industries like machinery, electronics, and automotive parts, according to ING Bank Śląski economists. The spending will primarily support traditional sectors, with some investment in military electronics.
If Germany implements its new defense strategy and loosens fiscal policy, GDP forecasts for 2026 in both Germany and Poland may be revised upwards. The unexpected scale of Germany’s fiscal stimulus—rising from EUR 15–40 billion before the elections to EUR 90 billion annually—has already driven up German bond yields.
Polish and Central European industry may see gains as Europe rebuilds its defense capabilities. With Donald Trump signaling a withdrawal of U.S. security guarantees for Europe, German industry is considering shifting production, with Poland as a key destination. However, geopolitical risks remain a concern.
Source: pl.investing.com
