Poland continues to stand out as a prime location for foreign direct investment (FDI) in Europe, according to EY’s report, "Investment Attractiveness of Europe 2024." Despite a 7% decline in overall FDI across Europe, Poland has shown resilience, with an impressive 21% increase in jobs related to new investments. This growth underscores Poland’s ability to attract and retain international capital, making it a focal point for companies looking to expand within Europe.
FDI Growth Driven by US and German Investments
Poland’s success in attracting foreign investment is largely driven by contributions from the United States and Germany. The US, in particular, accounted for a substantial 36% of FDI in Poland in 2023. With 52 investment projects completed, the United States helped create 9,805 jobs, signaling a strong partnership between the two nations.
Germany, on the other hand, remains the largest European investor in Poland, contributing 16% of total FDI with 36 projects. German investments were concentrated in the industrially rich regions of Silesia and Małopolska, which offer well-developed infrastructure, a highly qualified workforce, and strategic logistics hubs. These investments have already created 6,800 new jobs, with more projects anticipated to further boost employment in these regions.
Poland vs. Central and Eastern Europe (CEE) Competitors
While Poland is a leading investment destination in Central and Eastern Europe (CEE), it faces increasing competition from regional peers such as Serbia, Romania, and Hungary. These countries are offering attractive investment packages to draw in German capital, with each securing several German investment projects in 2023. However, Poland’s large domestic market and its strategic position in Europe give it an edge, especially in attracting German manufacturing and logistics companies.
Key Investment Sectors
Poland continues to attract investment in sectors such as automotive manufacturing, logistics, and industrial technology, with companies being drawn to its strategic location, which offers easy access to the rest of Europe. The focus on advanced industries such as electromobility and IT services also helps Poland stay competitive on the global stage, making it a destination of choice for companies seeking to invest in future-oriented sectors.
Challenges for Future Growth
Despite Poland’s strong investment performance, challenges remain, especially in light of a 15% drop in US investment interest across Europe. As the competition from other CEE countries intensifies, Poland must continue to foster strong relationships with key investors like Germany, offering competitive incentives and ensuring an attractive business environment to sustain growth.
The country’s ability to continue attracting foreign investment will depend on several factors:
- Strengthening partnerships with existing investors.
- Offering favorable conditions for further capital influx.
- Adapting to global investment trends in technology and sustainability.
Conclusion: Poland’s Strategic Role in European Investment
Poland's ability to maintain robust investment figures in a declining European FDI landscape positions it as a key player in the region. With strong contributions from US and German investors, as well as competitive labor costs and a highly skilled workforce, Poland is poised to continue attracting significant foreign capital. However, the country will need to navigate increasing competition from neighboring countries and ensure it remains an attractive destination for future investments.
This resilience, combined with ongoing government efforts to enhance investment conditions, solidifies Poland’s role as a crucial investment hub in Central and Eastern Europe in the coming years.
For more details on Poland’s investment landscape, please refer to the EY Report – Europe’s Investment Attractiveness 2024.
