Why Invest in Poland in 2024? | Polish Investments
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Why Invest in Poland in 2024? 

"Untapped potential," "Poland: the regional leader," and "A record year for foreign investments." These headlines highlight Poland as a top spot for business. Thinking about starting your own company in Poland? Our article will help you decide if it's the right move for you.
Maja Walczak
Maja Walczak
17 November 2023
Langbay - English-to-Polish Translation for Market Impact - Why Invest in Poland in 2024? 

List of contents

Invest in Poland - Impressive Data Well-Located European Hub for Foreign Investment Opportunities Poland is Start-Up-Friendly Industries on the Rise in Poland Open-Minded Consumers COVID-19-Proof Stability of Poland Risks of Doing Business in Poland Your Polish Partner When Expanding Your Business to Poland

Poland, situated in the heart of Eastern Europe, continues to attract global attention as a prime investment destination. Poland has an internal market of over 38 million consumers and provides easy access to the European Union's market of 500 million consumers, plus other Eastern European countries.

So why invest in Poland? This is the third consecutive year that Poland has seen record-breaking foreign investments. The Polish Investment and Trade Agency has been a big help in making this happen, not just in terms of money invested but also in creating new jobs.

With strong GDP growth and a supportive environment for commercial real estate development, Poland offers unique opportunities for foreign investors and companies looking for new investment locations. Discover why.

Invest in Poland - Impressive Data

Poland is not just another European country. It's a burgeoning powerhouse within the OECD. In recent years, Poland has made significant strides in R&D, facilitated by supportive government policies and incentives. 

The labor market in Poland offers a unique advantage. It has one of the lowest unemployment rates in Europe, reflecting a well-developed, skilled workforce that is both efficient and cost-effective. According to the latest reports, Poland ranks impressively among EU member states for its stable political climate and attractive investment incentives, making it an appealing option for businesses looking to expand.

In 2022, the Polish Investment and Trade Agency (PAIH) completed 60 foreign investment projects with a total value of over €4.2 billion

The investments are expected to create approximately 10,700 new jobs. The majority of the investments, about 70%, were new investments, while the remaining 30% were reinvestments by companies that were already present in Poland.

Poland ranks third in Europe in terms of the number of greenfield investments, making it the leader of the CEE region.

Poland has shown strong economic performance, with private consumption making up 57.8% of its Nominal GDP as of September 2022. The country ranks fourth globally for sourcing, nearshoring, and reshoring and is the top destination for EU companies.

Therefore, the country's strategic advantages as an investment destination, including its economic stability, strategic location, skilled workforce, and favorable business opportunities, make it an appealing option for foreign companies looking to expand in 2024.

Well-Located European Hub for Foreign Investment Opportunities

Poland's geographical location is one of its main assets. Important European transport routes run through Poland, and the network of highways and expressways constantly expands. Add to that the numerous transshipment terminals, ports, and airports, and you'll end up with a perfect transport hub linking the West, South, and East of Europe and China.

Poland is also a safe place to set up manufacturing plants. Considering the supply chain problems revealed by the COVID-19 outbreak, Poland offers a clear advantage over distant Middle Eastern countries.

Poland has been actively developing its transportation infrastructure, which includes roads, railways, airports, and seaports. This development enhances its strategic location at the crossroads of major north-south and east-west transportation routes in Europe.

Poland is Start-Up-Friendly

Numerous research institutions, academic incubators, and universities involved in technological research create a favorable climate for business development based on new technologies—the population of well-qualified employees eager to grow and improve their skills is still rising. Poland's investment climate has been recognized by giant international companies such as Microsoft and Google, which invested $3 billion in building a database in Warsaw.

The largest foreign investment in Polish history was made by Intel, a big tech company, which invested nearly PLN 20 billion in a Semiconductor Integration and Testing Plant in Miękinia.

Before Intel, the largest investment was by Korean company LG in 2019, which was worth EUR 1.3 billion and created 4,000 jobs. Another significant project by LG Chem in Wrocław involved over EUR 1 billion and created 810 jobs.

If you are in the business of developing new technologies, investing in Poland might be for you. Notably, the famous start-up Booksy, one of the world's most popular platforms for making appointments at beauty salons, took its roots from here.

Industries on the Rise in Poland

In 2021, Poland's economic landscape was as vibrant and diverse as its natural surroundings, attracting significant investment across various key sectors. The automotive industry, known for its substantial employment base, continued to drive economic growth alongside the burgeoning business services sector, which includes BPO, IT, SSC, and research and development companies. Thanks to competitive labor costs and a highly skilled workforce, these sectors saw rapid expansion.

Investments in e-mobility, smart cities, smart homes, and renewable energy sources also saw a rise, reflecting Poland’s commitment to modernizing its infrastructure and embracing new technologies. Additionally, industries such as furniture, fashion, and cosmetics showed great potential for success, drawing interest from foreign investors. The leading sectors like outsourcing, electromobility, automotive, electronics, and chemicals remained particularly attractive, underscoring Poland's position within the Polish investment zone as a dynamic destination for business expansion.

The industrial warehouse market in Poland is the fastest-growing sector in commercial real estate, driven by the e-commerce boom and increased demand for logistical space. In 2021, there was a record demand of approximately 7.1 million square meters for industrial and logistical warehouse space.

Open-Minded Consumers

Let's remember that there are people behind the numbers. Entering the Polish market means accessing a population of 38 million consumers who enjoy using mobile applications, playing video games, and discovering modern technologies.

Poland was ranked 2nd among Europe's top 10 cashless countries. The majority of Poles use payment terminals and other innovative solutions.

If you set up a business in Poland, you can also find well-educated and specialized employees. According to the Polish Investment and Trade Agency, "nearly 1.3 million students study at Polish universities, which makes Poland 4th in Europe regarding the number of students". Many of those students specialize in science, engineering, or mathematics.

Poland ranks high internationally in education, being third in the PISA assessment and having a high percentage (92%) of citizens aged 25-64 who have completed at least secondary education.

COVID-19-Proof Stability of Poland

The Polish economy is recognized as stable and has high growth dynamics. The economic crisis brought about by the COVID-19 pandemic has finally slowed down, and analysts say that Poland has fared better than the average country in the European Union.

Despite the pandemic, 165 new investments were made in the first four months of 2020, which is 15% more than in the same period in the previous year. Ernst & Young Global Limited predicts an 80% investment success rate in Poland, compared to 65% in other EU countries.

Risks of Doing Business in Poland

Is Poland the perfect country to invest in? Although the overall landscape seems promising, you must be aware of the potential difficulties in doing business in Poland.

Polish tax regulations and tax rates are common barriers to effective business development in Poland. However, the government has implemented numerous measures to mitigate these, including tax exemptions and investment grants, especially those available in special economic zones. To invest in Poland successfully, you must have a firm grasp of the economic reality, keep up to date with changing regulations, and immerse yourself in the local atmosphere.

Your Polish Partner When Expanding Your Business to Poland

When expanding your business to Poland, navigating the language barrier is a crucial challenge. As the owner of a boutique translation company, I specialize in providing both linguistic and business support to entrepreneurs entering the Polish market.

I can assist you in taking the first steps by facilitating effective communication with various authorities and contractors. Additionally, I offer connections to attorneys-at-law and specialized companies that can streamline your expansion process and next investment in Poland.

Moreover, successful market entry involves more than just linguistic accuracy—it requires a deep understanding of cultural context. My Polish translation services go beyond mere translation. They ensure content is properly localized, making your brand resonate with Polish audiences and bridging the cultural gap. This comprehensive approach is essential for achieving success in a new market.

To sum up: Should you invest in Poland? Let the data answer that. According to the 12th edition of the investment climate survey conducted by Grant Thornton, the Polish Investment and Trade Agency and HSBC, 94% of foreign investors would invest in Poland again.

List of contents

Invest in Poland - Impressive Data Well-Located European Hub for Foreign Investment Opportunities Poland is Start-Up-Friendly Industries on the Rise in Poland Open-Minded Consumers COVID-19-Proof Stability of Poland Risks of Doing Business in Poland Your Polish Partner When Expanding Your Business to Poland

Want to Expand into the Polish Market?

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