18.3 C
London
Friday, May 24, 2024

Handelsblatt on the growing importance of Poland. Every fourth European company chooses Poland for relocation of production

Must read

- Advertisement -


No other country in the European Union benefits from changes in global supply chains as much as Germany’s eastern neighbor. Poland is becoming a bridge between East and West, assessed the Handelsblatt (HB) portal. He emphasized that the industrialized countries of the West are struggling with the effects of geopolitical upheavals, while Poland is “writing its history of economic success”.

“Despite fears of Russian aggression, especially in Poland, the country is gaining enormous economic importance as a result of the current crises,” states HB. He also emphasizes that Poland as a European investment location is currently on an upward trajectory. Only in 2022, foreign direct investment in Poland increased by 23%, reaching a volume exceeding EUR 42 billion.

“In terms of the rule of law, it’s a nuisance”

“Economically, Poland is an exemplary student of the European Union, but in terms of the rule of law, it is a nuisance,” we read on the HB portal, recalling, among others, the ongoing dispute in Brussels over the reform of the judiciary or the admission of refugees. “At the moment, the Ukrainian war is increasing Poland’s importance. Western efforts to reduce risk in supply chains, making them more regional than before the pandemic and the economic conflict with Chinaalso stimulate the economy of the country” – it was written. The portal emphasizes that no other country in the EU “benefits as much from changes in global supply chains as its eastern neighbor German“, and Poland becomes “a bridge between East and West”.

- Advertisement -

Every fourth European company chooses Poland

HB calculates that Poland uses the fact that Russia was practically excluded as an investment location. Experts estimate that currently almost every fourth European company chooses Poland when it comes to relocating production. Poland’s attractiveness is confirmed by its proximity to Germany (as Europe’s strongest economy), as well as high productivity rates, low labor costs, a market of qualified employees, and a well-developed infrastructure. The portal points out that in recent years, investments to Poland have been coming mainly from Luxembourg, Germany, the Netherlands and France. Poland is considered a good location for business not only by European companies. The American Intel wants to build a chip factory in Wrocław, the value of this investment is estimated at EUR 4.2 billion. Many medium-sized companies are involved in investments in Poland. “Already every tenth investor comes from neighboring Belarus or Ukraine. Since the beginning of the Russian campaign, Ukrainian companies have been moving to Poland more and more often, last year alone there were 22,000.” H.B. notes. He adds that “Economists point out that the influx of refugees from Ukraine causes huge social costs, but at the same time provides the country with hundreds of thousands of skilled workers. (…) About 1.4 million Ukrainians have found permanent residence in Poland, gaining access to the labor market and social system.

A bridge for EU investments in Ukraine

As for Belarus, the number of investments from this country has been growing rapidly since 2020. “In response to the brutal suppression of protests in Belarus, the Polish government systematically promoted the settlement of IT specialists, start-ups and small and medium-sized companies with the Poland Business Harbor co-financing program” – reminds HB. As a result, the number of companies with Belarusian capital registered in Poland is growing rapidly. in the years 2013-22, it was an average of about 500 companies per year, in 2022 a record number of them was registered – as many as 1,733. According to economists, after the end of war in Ukraine strengthening of the Polish economy will continue. “Poland is a natural bridge for EU investments in Ukraine,” said Piotr Arak, head of the Polish Economic Institute, in a commentary for HB. For Poland, “medium-term forecasts are promising, even if, according to Eurostat estimates, the Polish economy will take a break this year and grow by only 0.4 percent.” H.B. concluded.

Read also: High prices hit restaurants. Almost every second Pole cannot afford to eat out

Main photo source: Shutterstock



Source link

More articles

- Advertisement -

Latest article