President of the Polish Investment and Trade AgencyReal Estate Market
Originally Published in March 2018
Experiencing steady growth and solid economic foundations, Poland had successfully managed the risks of the global financial crisis of 2008 and pulled off as the only EU member state to evade recession. Owing to that, foreign companies acknowledged our country as a sort of a safe haven for their capital and business. Month after month, Poland has been recording the lowest unemployment rates in years (below EU average) and the employees have been enjoying higher salaries. Furthermore, World Bank, the EU Commission as well as rating agencies have revised GDP growth projections up as a result of improving indicators and controlled inflation. What is unique about Poland’s economy is that alongside the steady growth there is a sharp vision of the future outlined in the Strategy of Responsible Development.
What is unique about Poland’s economy is that alongside the steady growth there is a sharp vision of the future outlined in the Strategy of Responsible Development.
Throughout over 20 years, Poland like no other country in the CEE, has managed to attract a great deal of foreign capital, totalling EUR 176bn, data shows. What is more, it ranks second as an FDI destination in Europe, by jobs created, surpassing even Germany. Our country offers a stable environment for foreign investors due to the economic stability and highly skilled employees proficient in numerous languages. This is visible in the PAIH portfolio. We wrapped up 2017 with a record high FDI stock of completed projects worth EUR 2bn. Due to our support the Seoul-based LG Chem is to build in Poland Europe’s largest electric car battery production plant. Poland also appeals to the leading financial institution, JP Morgan, which, with our help is to open its corporate centre in Warsaw. We have become a leading automotive parts producer and a sort of BSS hub in Europe – up to 70% of the CEE centres are based in our country. According to ABSL repot, BSS is Poland’s fastest growing sector, hiring over 240,000 people. PAIH has completed 260 BSS projects (out of 724 in total) that created 64.500 jobs, so far. Interestingly, the sector is Poland’s major office space tenant, boosting the market’s development, mainly in regional cities. Automotive and BSS sectors continue to be on the rise, undoubtedly. However, in order to boost Poland’s economic development, we must attract more high-tech FDIs, encourage the world-class cutting-edge to invest in Poland. Strategy of Responsible Development is all about innovation. New technologies provide new growth opportunities, hence, the Agency is focused on dealing with ventures that would pay off the most, adding tremendous value to the economy.
The revised economic development policy features a new approach to economic diplomacy. As exports has been one of the Poland‘s biggest advantages (trade surplus has been noted for years), the government obliged PAIH to promoting 9 prospective sectors and supporting national business by foreign trade offices supervised by the Agency. Polish companies have never had such strong institutional representation abroad, offering a one-stop-shop services. We are looking forward to seeing Poland and Polish business flourish, guided by PAIH.