Industry growing in one sector, falling sharply in another

Polish industry is increasing production despite a difficult international environment, with output up 4% y/y, according to Statistics Poland. However, this average hides deep structural change. Traditional sectors such as automotive and furniture are in recession, hit by weak EU consumer demand, rising price competition from China, Turkey and India, and declining cost competitiveness as Polish wages rise.

At the same time, other sectors are expanding rapidly, including transport equipment, machinery, computers, measuring devices and waste management. Growth is being driven by the energy and digital transitions, railway investment, defence needs and the circular economy. The data suggest that Polish industry is showing strong flexibility and adapting faster than many EU competitors.

(pb.pl)