As the global economy undergoes relatively uncertain times, Poland stands out as a beacon of resilience and growth within the European Union. Despite challenges posed by the pandemic and geopolitical tensions, Poland's economy has demonstrated remarkable stability and vitality, making it an attractive destination for foreign investment.Â
Therefore, if you are wondering whether it is worth choosing Poland as a destination for your company’s development, check out our snapshot of the country’s current economic and business situation.
Steady Economic Growth
Since joining the European Union in 2004, Poland has consistently outpaced many of its European counterparts in economic growth. With an average GDP growth rate of 4.1% per year, Poland has emerged as the sixth-largest economy in the EU, showcasing both speed and steadiness in its economic expansion. Despite the global financial crisis of 2009 and the pandemic-induced downturn of 2020, Poland remained resilient, with minimal impact on its GDP compared to other EU nations.Â
Poland's success in maintaining economic resilience and stability is further underscored by its favourable rankings in global indices, which measure ease of doing business and competitiveness. The country's high scores in the Heritage Foundation's Index of Economic Freedom and the IMD World Competitiveness Ranking highlight Poland's commitment to creating a conducive business environment with transparent regulations and robust international trade practices.
Robust Recovery From Pandemic
Poland's swift rebound from the economic setbacks caused by the pandemic proves its proactive fiscal policies and resilient business environment. In 2021, Poland recorded a remarkable economic growth rate of 6.8%, surpassing the EU average. Government initiatives, including substantial fiscal measures and access to EU recovery funds, have played a pivotal role in supporting businesses and stimulating economic activity.
Moreover, Poland's appreciation for international trade freedom, evidenced by its high rankings in global competitiveness reports, further solidifies its attractiveness to foreign investors. With a solid commitment to upholding investment and financial freedom, coupled with the facilitation of trade within the European Union's single market, Poland offers a stable and predictable business environment conducive to long-term growth and prosperity.
Favourable Investment Climate
Poland offers foreign investors a safe business environment with political stability, strong institutions, and a skilled workforce. The government's commitment to economic reforms and investment-friendly policies further enhances the country’s attractiveness for foreign capital. Moreover, Poland's strategic location in Central Europe provides access to key markets within the EU, making it an ideal hub for regional operations.
Furthermore, Poland's dedication to maintaining uniform and consistent rules for trade, investment, and intellectual property rights within the European Union ensures a transparent and predictable regulatory framework for businesses. This commitment fosters confidence among investors, enabling them to operate seamlessly across borders and capitalise on the opportunities presented by the EU's single market.
Supportive Tax Policies
The Polish government has demonstrated a proactive approach to supporting businesses through targeted fiscal measures. Initiatives such as subsidies, tax exemptions, and liquidity support have provided much-needed relief to companies, fostering resilience and continuity amid challenging times. Moreover, ongoing investments in green and digital transition, supported by EU funds, present lucrative opportunities for businesses looking to capitalise on emerging trends.
Additionally, Poland's commitment to fostering innovation and sustainability through targeted investments in green and digital transition initiatives aligns with global trends, positioning the country as a forward-thinking destination for businesses seeking to innovate and grow. By leveraging EU funds and implementing supportive tax policies, Poland not only stimulates economic growth but also cultivates a business ecosystem conducive to long-term success and competitiveness.
Low Unemployment and Rising Wages
Poland boasts one of the lowest unemployment rates in the EU, underscoring its strong labour market dynamics. With unemployment falling to 2.9% in 2022, businesses benefit from access to a skilled and motivated workforce. Moreover, the government's commitment to raising the minimum wage and reducing personal income tax ensures that purchasing power remains robust, further stimulating domestic demand and consumer spending.
Furthermore, Poland's commitment to maintaining a competitive labour market extends to its dedication to continuously enhancing the skills and capabilities of its workforce through education and training programs. This ensures that businesses operating in Poland have access to a talent pool that is not only skilled but also adaptable to the evolving needs of the global economy.
Ease of Doing Business
Favourable regulations and a stable business environment further enhance the ease of doing business in Poland. According to the Heritage Foundation's 2023 Index of Economic Freedom, Poland ranks 47th out of 184 economies, scoring 67.7 out of a maximum of 100 points. Additionally, in the 2022 IMD World Competitiveness Ranking, Poland ranked 50th among 63 chosen countries, scoring 53.37 points. Poland's international trade freedom is also highly appreciated, with rankings of 18th in the International Trade category by the IMD report and high points for investment and financial freedom by the Heritage Foundation.
In conclusion, Poland's resilient economy, supportive business environment, and strategic location make it a compelling destination for foreign investment. Despite global challenges, Poland continues to offer lucrative opportunities for businesses seeking growth and expansion. With its robust recovery from the pandemic, proactive government policies, and skilled workforce, Poland stands ready to welcome and empower investors to utilise the full potential of its dynamic business landscape. Now is the time to utilise the opportunities that Poland has to offer and guarantee yourself and your company international success and prosperity!
Source: Investment in Poland. A rough guide to successful investing in Poland. KMPG, June 2023