Investing in Poland 2011
main exports markets in 2009
profitability, were able to avoid losses and any need for public assistance. Poland’s exceptional performance during the global financial crisis proved the flexibility, high competitiveness and overall strength of the economy. Good competitive position Poland is located in the heart of Europe, close to the economic center of the continent. On the one hand, producers have unlimited access to the whole European market; on the other the costs of skilled labor represent a fraction of Western European levels. Therefore the country has continuously attracted a lot of investor interest and capital, and still enjoys a good competitive position and high attractiveness as a production site. During the pre-crisis boom the combination of the aforementioned factors led to huge FDI inflows (E18 billion in 2007 alone). Investment fell during the global economic slowdown but shifts in activity also probably took place: multinational companies cut more output in Western Europe than in Poland. As a result, after an initial drop, by autumn 2009 the industrial output of Poland was already topping pre-crisis levels.
A population of 38 million people offers a great opportunity for industrial and service expansion for investors. Moreover,
Germany
25,685.7
26.1
France
6,826.2
6.9
Italy
6,740.6
6.9
UK
6,300.1
6.4
Czech Rep
5,745.4
5.8
Netherlands
4,175.0
4.2
Russia
3,595.5
3.7
Hungary
2,654.8
2.7
Sweden
2,636.4
2.7
Spain
2,577.6
2.6
country
e millions
in %
Germany
24,053.2
22.4
China
9,983.3
9.3
Russia
9,205.8
8.5
Italy
7,336.8
6.8
France
4,956.0
4.6
Netherlands
3,904.2
3.6
Czech Rep
3,882.3
3.6
South Korea
3,228.7
3.0
UK
3,177.5
3.0
US
2,495.5
2.3
the variety of natural resources and neighborhood of countries also rich in resources also create a favorable situation. Government system m
oland is a republic. The government of the Republic of P Poland is based on the separation and balance of powers between legislative, executive and judicial branches. Legislative power is vested in the Sejm and the Senate, executive power is vested in the President of the Republic of Poland and the Council of Ministers, and judicial power is vested in the courts and tribunals.
m
e Polish public administrative system is based on the diTh vision into central and regional (local government) administrations. According to a cardinal principle included in the Constitution, local authorities are elected by citizens. The structure of Polish local government consists of: 2,478 municipalities, 379 counties and 16 voivodships.
Poland is classified by the World Bank as an “high-income economy.� That makes Poland one of the biggest economies in the EU according to the International Monetary Fund.
The majority of Polish foreign trade is linked to the markets of EU member states.
in %
Source: Central Statistical Office
Poland: General and economic data
International trade
e millions
main import markets in 2009
The Polish market is as large as the rest of the Central European countries together. When comparing Poland to other countries of the region which might enjoy the same cost advantages, Poland distinguishes itself through its significantly bigger domestic market. Consequently Poland is less dependent on exports than, for instance, the Czech, Hungarian or Slovak economies.
Moreover, Poland is experiencing a period of self-sustaining economic growth, with its economy the only one in the EU to have resisted the global economic slowdown of 2009. Polish GDP growth in 2010 is forecast to amount to over three percent, fueled mainly by exports and investment. The National Bank of Poland estimates that GDP in 2011 will stand at 4.6 percent.
country
Source: Central Statistical Office
Domestic market
The major slowdown recorded in 2009 is likely to be only temporary. With its high level of competitiveness, strong economic fundamentals and high flexibility, Poland will be perfectly able to benefit from the global recovery over the next few years. Despite many problems that may still appear, the Polish economy is set to grow at a high rate.
9
Investment Primer
Legal system m
e sources of universally binding law in the Republic of Th Poland are: the Constitution, statutes, ratified international agreements and regulations.