Investment in Poland gaining pace?

Central Statistical Office published first data on investment in November 2016. The numbers came as a bit of a surprise to many economic experts.

Deputy Prime Minister Mateusz Morawiecki, the person in charge of both the Ministry of Finance and the Ministry of Development expressed a belief that first half of 2017 will show an increase in investment in Poland. The minister is certain a boost in investments will appear no later than in the third quarter of the upcoming year.

Investment data has not been good recently. In fact, Poland has been experiencing a slowdown in this area. Opposition criticizes the government for the negative trend. The ruling party highlights the fact that we are having less optimistic news on economic data coming from all countries in the region and the entire European Community. Poland’s situation is nothing unusual.

Many experts noted that public investment is down as well as private investment. Our weak point is spending money from the EU funding. Although this is the case, the government guarantees this is soon to change and numerous public projects will be soon launched. The Ministry of Development is working on legislation that will simplify the procedures connected with receiving public funding.

Deputy Minister of Development Jerzy Kwieciński expressed a view that the country in 2017 will move back on track. He also highlighted the positive outlook of the labour market: Poland is currently enjoying a period of very low unemployment and rising wages.

Good news is coming from Central Statistical Office (GUS). Key economic data for November 2016 are looking better than expected. There has been growth reported in such areas as production and retail sales. There are positive figures coming from the construction industry. The GDP may soon go back on the path of growth, despite unfavourable October data that showed the economy was cooling down.

Investment Outlook and Business Perspective

Poland remains one of the most attractive investment destinations in the European Union. With GDP exceeding EUR 650 billion, Poland is the sixth largest economy in the EU and the largest in Central and Eastern Europe. The country has maintained positive economic growth for over three decades, including through multiple global crises.

Foreign direct investment in Poland continues to grow, driven by the country’s strategic location, skilled workforce, EU membership, competitive costs, and improving infrastructure. Key sectors attracting investment include manufacturing, technology, business services, logistics, and financial services.

For investors considering entry into the Polish market, proper structuring of the investment vehicle is crucial. The choice between a sp. z o.o. (LLC), S.A. (joint-stock company), branch office, or joint venture depends on the investment size, sector, tax considerations, and long-term strategic objectives. Professional advisory can help optimize the structure from both operational and tax perspectives.

If you are doing business in Poland or considering entering the Polish market, Zalewski Consulting can help. Learn more about our VAT and tax advisory, or contact us for a free consultation.