In three years Chinese are going to spend in Poland nearly 300 million euro. This year, Polish agency of Information Foreign Investment (PAIFI) will finalize projects of 80 million euro. Acquiring investments is difficult because of weak promotion of Polish market. The agency negotiates the contract that assumes the growth to 200-300 million euro with Chinese governmental authorities. It would be a great jump. Projects finalized by PAIFI were worth almost 30 million euro. Those from 2009 only 10 million.
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The sector plans a billion- dollar investment . Biggest air craft companies have already aquired old factories or build new ones. First place is occupied by US company -United Technologies Corporation (UTC).
Hundreds millions of zlotys were spent by new owners for modernization of local factories like PZL Swidnik – Italian-British helicopter corporation Agusta Westland. Similarly, Italian Avio, which owns rapid developing site in Bielsko-Biala. Engineering centre, currently under the development stage, is expanded near the Warsaw by General Electric. Others are Bavarian MTU in Rzeszow, French corporation Hispano Suiza (Sedziszow Mazowiecki) and Airbus Military.
Whole last week investors were interested only in EU summit. Counting on clear plans for Greece crisis, Monday was a day of aggressive buying. When in Thursday it turned out that half of debt of his country will be erased, and EFSF fund will be subsidized by 1 billion euro, the floors exploded with euphoria. Around the globe the indexes jumped.
This reaction is a paradox itself. In normal conditions a news that some bank would bring loses, - like those which own Greece bonds – would cause a deep fall on markets. Now it causes an euphoria. Developing countries are back in the game. The index of developing countries rose this week at level 9%. It is the best result for nearly may 2009 and one of the best in whole 20-year history of the index.
However biggest stock markets were in the spotlight. The capital flew to Brazilian, Chinese, Indian and Russian (BRIC) markets. Between these the WSE was present. WIG20 got 4.5%, but analysts cool down the buzz. It can be only a temporary , technical jump, and in next week we can expect wide sales.
One zloty, invested In Poland by foreign investors one year ago, gave 7.5% of ROI – the report of Polish National Bank says. As for crisis time it is quite good interest.
Taking into account the relation between direct investment profits to its whole value, Russia is record country. Each zloty invested in Russian gave 1.8 zlotys of profits, however in the scope of whole economy theses are rather small amounts – Russians have invested “only” 25 million euro in Poland. Despite the fact that total amount of profits that foreign investors take from polish branches recently rises, it cannot reach 2008 level – 13.8 billion euro. Its last-year profits reached nearly 11.3 billion euro. Those data would be far more worse if not the amount of profits transferred to Holland. It equals to 2.2 billion euro. A larger part came from Eureko’s shareholding in PZU.
Are you interested in expanding your business to Poland? Do you want to know more about the Polish market and its opportunities? Then this webinar is for you!
During our webinar, we will explore the ins and outs of doing business in Poland, including the economic climate in Poland. We will also discuss key factors like taxes, regulatory framework and investment incentives. Whether you are a small business owner or a multinational corporation, this webinar will provide valuable insights into how to succeed in the Polish market. Join us and discover the potential of doing business in Poland!
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Join us for a webcast on 14 February 2023 as KPMG professionals provide insights into the inner workings of CBAM, explore the effect that these measures have on organizations situated both within and outside the EU, and delve into why decarbonisation of production, whether that production is expected to be a key source of competitive advantage for selling into the EU market.
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