“Daily Telegraph”: Poland is growing into the industrial center of Europe

Poland wants to deprive Germany of the crown of the industrial heart of Europe – writes the Daily Telegraph.

The British daily compared Poland to Germany and pointed out the recurring problems of the German economy. “While the German economy is struggling, dynamically developing Poland wants to take the crown of the country’s industrial center of Europe,” Tomas Dvorak, senior economist at Oxford Economics, wrote in the British daily.

The newspaper reads that Poland is one of the few countries where industrial production has returned to the trend before the outbreak of the coronavirus pandemic.

“Daily Telegraph”: Poland is developing, Germany is declining

The newspaper states that Poland is the ‘younger brother’ of German industry. For years, our country played an important role in the supply chain of the German economy, but now Poland has decided that it wants to produce a number of products itself.

“While Germany worries about competitiveness, its Central European neighbor continues to develop its manufacturing strength,” says Dvorak.

The economist cites OECD data showing that industrial production in Poland has increased by 85 percent over the past decade, while in Germany it has increased by 46 percent.

Dvorak, looking for the reasons for this state of affairs, points to lower wages, cheap land, the relocation of supply chains by Western countries from China to countries closer to their borders, and the government’s protectionist policies.

Nevertheless, Germany remains the economic leader of Europe, still with a huge lead over other countries. If only industrial production in Europe is taken into account, Germany has 26%. share therein, while Poland has only 6 percent.

What is happening to the German economy?

According to the latest forecasts, the German economy will record a decline of 0.6% this year, while growth of 0.3% was forecast in the spring.

According to the deputy director of the Leibniz Institute for Economic Research, Oliver Holtemeller, the reason for the expected decline in German GDP is a slower-than-expected recovery in industry and private consumption. As mentioned in an article published by “Bild”, five German economic research institutes conducted a joint study and concluded that the German economy is under pressure from political uncertainty, against the background of which production volumes are not growing.

Source: Do Rzeczy

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