Quick look on Polish investment sector

Nowadays Poland is the fast developing region in the Central Europe. The leader position gives the country the ability to attract the major foreign investors. Poland achieved its leader position due to the positive coorelation of all macroeconomic factors. The rate of Gross Domestic Product is increasing, Polish currency is strong and inflation rate is acceptable and can be compared with the inflation rate in other West European countries.

As a member of the EU, NATO and OECD, Poland is recognized as a trustworthy and reliable country for international business partners. A significant inflow of foreign direct capital is a result of a country’s attractiveness to foreign investors. Seventeen years after the successful transformation from centrally planed economy to market open economy, Poland is the leader in Central Europe in terms of foreign capital investment. From year to year the amount of foreign capital is increasing at a huge rate. More foreign companies locate its capital in Polish economy and as a result the capital positively affects economic development. According to the National Bank of Poland (NBP), the inflow of foreign capital investments in 2006 amounted to 15.9 billion $. In 2007 about EUR 13 billion of foreign capital was invested in Poland. The Economist Intelligence Unit predicts that similar amount of foreign capital will come to Poland at the end of 2008. The biggest growth of investment inflow in Poland took place 2000, 2004 and 2006. The first increase was an results of political and economic changes after the transformation period. In 2004 Poland joined European Union and it automatically reflect in the number of investors (see graph below ).

Source: National Bank of Poland, Statistic Department, 2007.

Foreign investors perceive Poland as a country still improving its attractiveness. From all the former Soviet countries Poland has the biggest market access. Geographical location of Polish territory between Germany and Russia gives Poland the priority in trade with East and West.
Foreign partners also point out that it is worth investing in Poland due to its uniform nationality. The possibility of ethnic conflict is the lowest in comparison with the rest of Central European countries. Moreover, Polish labour force is highly educated and rich in natural resources. All international surveys prove Polish position as a best country to locate capital. The most known research conducted by Ernst&Young pointed out that Poland is the most interesting capital location country. ( graph below ).

Source: : Ernst&Young, Europe: the opportunity of diversity, 2007.

The most attractive sectors of Polish economy where investors locate their capital are real estate market, motorization industry and financial sector. Real estate sector is fast developing, prices of a properties are still growing. Investing in properties are the best idea to gain profit in a short time. Banking sector due to the stability of Polish currency is waiting for foreign investors. Foreigners can easily purchase a property in Poland and can apply for a mortgage.