DistantNews
Support us
Polish industry orders skyrocket in May, driven by domestic and SAFE program contracts
๐Ÿ‡ต๐Ÿ‡ฑ Poland /Economy & Trade

Polish industry orders skyrocket in May, driven by domestic and SAFE program contracts

From Rzeczpospolita · () Polish

Translated from Polish, summarized and contextualized by DistantNews.

At a glance

News Sources not specified New plan
  • Polish industrial orders surged by over 143% year-on-year in May, a significant jump from a 1.7% increase in April.
  • This dramatic growth was primarily driven by domestic orders, while export orders saw a more modest increase of 6.2%.
  • Economists attribute the surge to one-off factors, particularly the rush to contract funds under EU support programs like SAFE before a late May deadline, including substantial military orders.

Polish industry experienced an unprecedented surge in orders in May, with a year-on-year increase of over 143%. This marks a dramatic acceleration from the modest 1.7% growth recorded in April, and a month-on-month increase of 135.1%.

The primary driver of this extraordinary growth was domestic orders. In contrast, export orders saw a more conservative rise of 6.2% year-on-year. While the figures appear robust, economists caution against interpreting this as a widespread recovery in the manufacturing sector.

Analysts from PKO BP and other banks point to specific, one-off factors influencing the May data. A key contributor was the approaching deadline for contracting funds under European Union support programs, notably the SAFE instrument. This prompted public entities to place a large volume of orders, particularly for military needs.

Economists noted that contracts within the SAFE program alone amounted to approximately 120 billion Polish zloty by the end of May. These orders are specifically for the Polish armed forces' own requirements and constitute a significant portion of the program's total available funds. Huta Stalowa Wola, for instance, secured contracts for the delivery of military equipment, including Rosomak infantry fighting vehicles and Krab howitzers.

Kamil Sobolewski, chief economist at Pracodawcy RP, described SAFE as a "flywheel for Polish industry," emphasizing its role in stimulating domestic production capacity, workforce utilization, and skill development. Beyond defense investments, infrastructure projects funded by sources like the EU's Recovery and Resilience Facility (KPO), the Cohesion Fund, and SAFE are expected to continue driving industrial production in the coming months, supporting sectors like energy, defense, and transport, even as export-oriented industries face weaker conditions.

Skala wzrostu zamรณwieล„ ogรณล‚em jest bezprecedensowa i odzwierciedla wpล‚yw zamรณwieล„ wojskowych w ramach programu SAFE, ktรณre zostaล‚y skierowane do krajowego przemysล‚u

โ€” PKO BP economistsEconomists from PKO BP commenting on the unprecedented scale of industrial order growth in May, linking it to military orders within the SAFE program.
DistantNews Editorial

Originally published by Rzeczpospolita in Polish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

More Stories

From Our Blog