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France becomes third largest market for Polish goods post-Brexit: report

Since Brexit, France has become the third largest market for goods from Poland, behind Germany and the Czech Republic, said the Polish Economic Institute (PIE). The analysts pointed out that the UK’s exit from the EU single market resulted in a decrease in its share in Polish exports.

As PIE pointed out, due to Brexit, the importance of France for Polish exports has increased. “Britain leaving the single European market resulted in a breakdown in turnover and a decrease in its share in Polish exports, which increased the importance of other countries,” noted the analysts.

France made up 5.8 percent of Polish exports in the period January-August 2021 and was 0.2 percentage points higher than in 2020 and 0.3 percentage points higher than in 2015, the year prior to the Brexit referendum. As noted by analysts, at the beginning of 2021, France briefly overtook the Czech Republic in terms of goods from Poland.

Experts noted that in the first eight months of 2021, several product groups were characterised by high growth dynamics. “Compared to the same period of 2020, the value of copper exports increased by 118 percent, TV sets by 72 percent, dishwashers by 67 percent, orthopedic devices by 58 percent. Sales of plastic building materials, seating furniture, processed meat, automotive parts and accessories, internal combustion engine parts and insulated wire also increased by more than 40 percent.”

The three most important groups of products (according to PKD divisions): electrical equipment; motor vehicles and their parts; computers and electronic and optical products – in 2020 accounted for over 38 percent of Polish exports to France.

“Poland is becoming an increasingly important trading partner for France,” noted PIE. In the period January-August 2021, Poland’s share in French imports amounted to 2.4 percent. and it was close to 0.6 percentage points higher than in 2015. However, Poland’s importance in French exports increased by over 0.7 percentage points. In the first months of this year its share amounted to 2.5 percent. In the analysed period, Poland was the 10th largest market for French goods.

According to PIE, the positive balance, which has been growing since 2007, may prove the increasing benefits from the Polish-French trade in goods. In 2020 its value amounted to EUR 5.5 billion, which accounted for over half of the total Polish commodity balance.

“The exchange of goods is only part of mutual economic cooperation,” it was emphasised. In 2020, France was the sixth largest buyer of services provided by Polish entities in terms of value. It was also the third largest direct foreign investor in Poland. The value of invested capital at the end of 2020 amounted to EUR 17.2 billion.

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