22:15 19 May 2020
Poland may gain over $8.3bn yearly on relocation of production from China
On moving part of production from China to other countries Poland could gain over $8.3 billion per year in the form of additional value added, estimate experts from (Polish Economic Institute (PIE). In PIE's assessment, relocation processes should be fostered by, among others, improving the condition of infrastructure, while barriers may be the availability of qualified staff and rising labor costs.
"EU countries could benefit the most from the relocation of production from China in the scenario combining national patriotism and the strengthening of new member states from Central Europe (Czech Republic, Poland, Slovakia, Hungary, Romania and Bulgaria) as a factory for EU countries. In absolute terms, Poland would benefit the largest,” the PIE reported.
PIE estimates that relocating part of the production of semi-finished and finished products from China would mean a drop in value added from USD 22.4 billion to USD 172 billion per year for the Chinese economy (depending on the assumptions made), which would mean a decrease in the country's GDP in the range of 0.21-1.64 percent.
(PAP)
