Why Invest In Poland
Foreign direct investment from American companies has been steadily streaming into Poland since the early 1990s when Poland introduced structural reforms to help it develop an open, free market economy. Since then, the economy has grown an average of four percent per year. When Poland joined the European Union in 2004, it embraced the EU’s “four freedoms” – the free movement of goods, capital, services, and labor – and American investors in Poland gained access to the 500 million-strong European market. The stability of Poland’s economy is reflected by the fact that it was the only EU economy to continue its era of growth during the 2008-09 financial crisis.
For over 25 years, Poland’s economy has grown continuously and doubled in its size, based on real GDP. Its educated workforce, large internal market, access to subcontractors and raw materials, and its central location and convenient time zone have made Poland a top destination for foreign investment. Today, the nation boasts €176 billion in total FDI and ranks second as an FDI destination in Europe, by jobs created, surpassing even Germany.
Why has Poland been so successful? Its strength comes from the intellect, entrepreneurial spirit, and innovation of its workforce. Currently, Poland has built a reputation as a regional assembly hub for automotive parts and accessories.
Poland is also one of the fastest-growing players in the world’s business-services sector, and has outperformed the rest of Central Europe. Poland’s business services possess plentiful talent and boast lower costs that those in Western Europe. As for innovation, entrepreneurship in Poland blends with cutting-edge tech industry knowledge to create a vibrant startup culture, reminiscent of Silicon Valley.
The country is currently undergoing far-reaching reforms that will further augment its attractive business landscape. Its labor force will see rapid future growth as a consequence of Poland’s new family and development policies. Poland has received the largest share of available EU funds and companies planning commercial endeavors can take advantage of this by applying through their Polish partners or subsidiaries for cash grants co-financed by the EU. Finally, this Central and Eastern European powerhouse has established 14 Special Economic Zones, or areas where business may be conducted on economically advantageous terms, such as competitive pricing and exemptions for corporate income tax as well as property tax.
These advantageous economic conditions combined with Poland’s talented and educated workforce, budding entrepreneurship, and highly charged potential in economic growth makes it one of the most attractive, cost-effective, and valuable destinations for foreign investment.