FDI in Poland
FDI in Figures
The flows of foreign direct investment in Poland slowed down after the global recession, but their dynamism was met again in 2010. Poland figures among the most attractive countries in Europe in terms of FDI. The real estate sector represents more than 40% of the total FDI, due to the fact that besides the existing real estate trade, the industry and services fields have also a large real estate component . The main assets of Poland are: its strategic position, its large population, its membership to the European Union, its economic stability and its fiscal system which is attractive to the companies.
|Foreign Direct Investment||2007||2008||2009|
|FDI Inward Flow (million USD)||23,561||14,689||11,395|
|FDI Stock (million USD)||178,408||163,360||182,799|
|Performance Index*, Ranking on 141 Economies||60||89||65|
|Potential Index**, Ranking on 141 Economies||42||42||-|
|Number of Greenfield Investments***||342||370||222|
|FDI Inwards (in % of GFCF****)||25.7||12.8||41.1|
|FDI Stock (in % of GDP)||42.0||31.1||42.5|
Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.
FDI Inflows By Countries and Industry
|Main Investing Countries||2009, in %|
|Main Invested Sectors||2009, in %|
|Real estate, renting and business activities||17.5|
|Trade and repairs||15.9|
|Transportat, storage and communications||5.7|
|Electricity, gas, water||4.1|
Source: OECD, Stat Extracts
Why You Should Choose to Invest in Poland
- Strong Points
- A fast-growing economy, location in central Europe, a multilingual work force and cheap labor costs make Poland an internationally attractive country. Poland also enjoys a well managed healthy economy, which is withstanding the crisis better than other European countries. Unlike other Central European countries, its population did not have to resort to loans in foreign currencies, in particular Swiss, a fact which protects the population from maximum debt.
- Weak Points
- Slow administrative procedures (according to the World Bank it takes 31days to form a company) and a deficit in the current account are the negative points linked to the Polish economy. The adoption of the Euro, initially planned for 2012 is compromised by the financial crisis and thus delaying the benefits to the economy.
- Government Measures to Motivate or Restrict FDI
- Investment assistance in special economic zones (SEZ);
- Entrepreneur access to European Union structural funds;
- Creation of industrial and technological zones that enable a synergy of companies working in the same sector;
- low costs of labor.
In order to face the economic crisis and support long term foreign investments, the Polish government has formulated a stabilization and development plan for the years 2009 and 2010 of Euro 24 billion, particularly to grant credit to small and medium companies and invest in renewable energy sources.
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