Increased Interest in Poland as a Destination for FDI
Despite the global economic crisis 2011 proved a strong year for foreign investments in Poland – projects concluded with participation of Polish Information and Foreign Investment Agency in 2011 grew to 173% of 2010 value
There are some very compelling reasons for this rise these include a stable democracy, strong state and regional support for investments, highly skilled work-force, reasonable costs, a well-established market economy, close and good relationships with other countries from the region and active involvement in the EU, WTO and NATO. There is no question that Poland is the economic and political leader in Central and Eastern Europe. It is a trustworthy and reliable partner for international business. All of these factors contribute to a positive, investor-friendly climate in Poland.
The strong internal economy and not being in the Eurozone had given the Polish government the additional flexibility needed to ensure the Polish economy is well protected against economic shocks. This is part of the reason for Poland being ranked as the 6th best country in the world for FDI by UNCTAD.
Poland’s location, at the centre of Europe, enables enterprises targeting both Western and Eastern part of the continent to do so in a strategic and efficient manner. With four major ports located on the Black Sea international import and export is reasonable and efficient.
The domestic market continues to go from strength to strength and confidence is high demonstrated by a rise in consumer spending of 15% from 2010 to 2011.
GDP was up 4.3%, well above the EC average of 1.5%. Poland is one of the larger EU member states, the 6th most populated country in the Union and the largest market in the region of Central and Eastern Europe. The Polish market is not only large and diverse but it is far more dynamic than other markets in the region. The Polish economy has proved robust enough to not just survive the storm of the first wave of the financial crisis but has thrived over the past few years.
Poland has proven the inherent stability of its economy during the on-going financial crisis and now, as the crisis continues, offer Europe a product which has been lately in short supply – economic stability. Companies which until recently have not made Poland a priority are now to take serious interest in the Polish market.
The view that Poland is a European hotspot for FDI is backed by a recent Ernst & Young report concerning the European investment attractiveness. The report puts Poland is at the forefront of the most attractive investment destinations in Europe.
“Poland: Another strong performer, Poland experienced a rapid rise of 40% in the number of FDI projects that it attracted. This resulted in a rise in Poland’s market share of job creation from 6% in 2009 to 9% in 2010. Poland has attracted investors in automotive (12%) and business services (8%). With strong economic growth prospects, low costs and growing numbers of consumers, Poland is a very attractive investment destination for industrial companies looking to locate in Europe.”
Source: Ernst & Young, European Attractiveness Survey 2011
Poland look set to continue to benefit from the uncertainties facing Europe hopefully the European Cup this year will put a new spotlight on Poland progress.