Since you’re here, you might have heard that the Polish market is full of business opportunities. Perhaps you learned about another international company expanding to Poland or read an article about the country’s impressive economic growth. The question is - why should you be interested in doing business in Poland? There are five main reasons why Poland is an increasingly attractive destination for investors.
1. Rapid Economic Growth
First of all, Poland has one of the fastest growing economies in Europe. Just in the first quarter of 2023 Polish GDP increased by 3.9% compared to the previous quarter, which was the best result in the EU. Poland was also the only country in the EU that avoided recession during the 2008-2009 financial crisis. According to Eurostat, in 2024 Polish GDP will grow by 2.7% in yearly terms.
2. Poland’s Strategic Location
Secondly, with 38 million citizens, Poland has the biggest domestic market in Central Eastern Europe. The country is also a member of the European Union with a huge population of around 447 million. Moreover, its strategic location in the heart of Europe makes Poland a great choice for companies focused on export.
3. Support of Foreign Investments
Foreign investors can count here on various forms of support from both Poland and the EU. You can take advantage of income tax exemptions, R&D relief, grants for investments of significant importance for the economy, and other lucrative incentives. It is also good to know that Poland is one of its largest beneficiaries of the EU with over 213 billion EUR received from this institution since 2004.
4. Polish Business Environment
Poland promotes a favourable business environment and encourages foreign investment, which leads to an increase in funds coming from other countries, economic expansion, employment opportunities, and the exchange of technological expertise. The country's economy is anticipated to exhibit strong performance, benefiting from EU development funds and robust household spending. Now, Poland is ranked as the sixth largest economy in the European Union (Paih.gov.pl).
5. War in Ukraine
However, the ongoing war of Russia in Ukraine creates potential challenges to Poland's
economic growth due to heightened uncertainty, disruptions in trade, monetary policy adjustments, and inflationary pressures. Despite these concerns, Poland is regarded as a global frontrunner in terms of business practices, demonstrating favourable rankings in areas such as cross-border trading and credit accessibility. Furthermore, corruption is rare in Poland, as evidenced by its relatively positive position on the Corruption Perception Index (45th place out of 180 countries). (Trade.gov).
If you're considering launching your business in Poland, feel free to reach out to the Spondeo team. We specialize in market research, business partner searches, organizing kick-off projects, and various other services that can assist you in getting your business off the ground in Poland.