Export of services as a driving force of Poland’s GDP

Since 1995, Poland has maintained a positive balance of trade in services. In recent years, it has become the main driving force behind the surplus in our country’s foreign  trade balance.

Trade balance in services in 2022-2023

In 2022, exports of services increased by 28.1 percent compared to 2021, reaching EUR 88.121 billion. Imports closed at EUR 54.444 billion, which means an increase of 29.7 percent compared to the previous year. Trade in services exceeded EUR 33.680 billion.

In 2023, exports of services increased by 10.1 percent to EUR 97.064 billion, while imports increased by 9.6 percent to EUR 59.691 billion.

Foreign trade in services in the first quarter of 2024

In the first quarter of 2024, Polish exports of services amounted to EUR 24.885 billion, an increase of 9.0% compared to the same period of 2023. Imports of services reached EUR 14.632 billion, growing by 11.7% year-on-year. The balance of trade in services amounted to EUR 10.251 billion.

Export of IT services

According to data from the National Bank of Poland, in 2022, exports of IT and telecommunications services brought Poland USD 13.4 billion, which meant an increase of over 15% compared to 2021. As a result, the Polish ICT (IT, telecommunications and IT security services) market  achieved the highest result so far, accounting for almost 35 percent of total service exports. The ICT sector is expected to grow to €25.2 billion by 2026.

Domestic IT companies sell their services mainly to Germany, the USA, Austria and the UK. Polish programmers, thanks to their know-how and innovative approach, are gaining a better and better reputation on the international arena, placing themselves at the forefront of the ranking of the best in the world.

Reshoring as a factor in export growth

Much of the growth in Polish exports of services can be attributed to the phenomenon of reshoring, i.e. the relocation of business operations back to Europe. The increase in exports of business services is not only due to the increase in the number of foreign investments, but also to the growing complexity and value of processes transferred to Poland. Thanks to Poland’s established position in the business services sector, many new centres are performing advanced, higher-value tasks from the outset, while simpler processes are being automated or relocated to lower-cost countries such as India.

Examples of companies that have made a significant contribution to the development of Polish services exports

Global investors have noted Poland’s potential. According to the Association of Business Service Leaders (ABSL), almost all service centres operating in Poland serve foreign customers. For example, Capgemini Poland, the largest employer in the industry, generates 94 percent of its revenues from servicing foreign clients, providing services to customers in 31 countries. Sii Poland serves clients from almost 30 countries, obtaining 30% of its revenues from the export of services.

Companies from the USA and Japan , are also investing heavily in the development of Polish service sector, noticing the potential and opportunities for development in this dynamically growing market. Poland is strengthening its position on the global business services market, which is confirmed by high positions in the rankings of attractive locations for IT outsourcing.

If the upward trend from the first quarter of 2024 continues, Poland could set a new annual record for the balance of trade in services, exceeding EUR 40 billion.

Sources:

• The Polish Development Fund (PFR),Kompendium Handlu Zagranicznego Polski
• The National Bank of Poland (NBP)
• The Association of Business Service Leaders (ABSL)  „Poziom innowacyjności w sektorze usług biznesowych w Polsce wyższy niż średnia dla całej gospodarki”