In recent years, Poland has successfully attracted foreign direct investment and this trend will continue in the near future.
In 2020-2022, the inflow of foreign direct investment to Poland averaged 3.7 percent of GDP, according to data presented in the PIE’s “Macroeconomic Monthly.” In 2023, the scale of investment will most likely be higher.
Poland’s result was better than most countries in the region, as the Czech Republic achieved 3.5 percent, Romania 3.0 percent and Slovakia 0.1 percent. Interestingly, the result was 4.6%. achieved by Hungary, mainly by aggressively attracting Chinese investments in the area of electromobility.
Experts from the Polish Economic Institute estimate that the solid result will be maintained in 2023, because according to data from the National Bank of Poland, investments worth PLN 113 billion flowed into our country in the first 10 months. If this trend is maintained in November and December (the results are not yet known), the entire year will close with an inflow of approximately PLN 133 billion, i.e. 3.9%.
However, the FDI structure is better. Currently, equity investments account for 80 percent. foreign investments flowing into Poland, of which reinvestment of profits is 56%, and completely new equity investments – 25%. The share of both categories is approximately 15-16 percent. greater than the historical average. In turn, the share of debt instruments is clearly smaller than in previous years
– it was written in the PIE article.
It was emphasized that such a mix helps improve the long-term potential of the economy and contributes to a stably strong zloty exchange rate.