Poland Retains its Position as one of the Most Attractive Investment Destination and the most attractive in CEE

Poland continues to dominate as the top choice for businesses seeking attractive investment locations, according to a recent economic survey conducted in March 2023 by the Polish-German Chamber of Industry and Commerce (AHK Polska) and IGCC (a network of international chambers of commerce operating in Poland). The survey revealed that Poland ranks first among Central and Eastern European countries, as well as China and Russia, in terms of investment attractiveness. Impressively, 92.7% of respondents expressed their willingness to choose Poland as their preferred business location once again.

Dr. Lars Gutheil, the general director of AHK Polska, highlighted the remarkable ability of enterprises to adapt and maintain stable positions despite the exceptional challenges faced. He stated that businesses flexibly adjusted their models, leveraged new opportunities for development, and improved operational processes. This resilience and proactive approach have solidified Poland's leading position as the most popular investment location in Europe.

Poland's membership in the European Union has consistently played a significant role in enhancing its business appeal, with 99.1% of respondents acknowledging its positive influence. The quality and availability of local suppliers secured the second spot at 95.5%, followed by the qualifications of employees at 93.2%. However, respondents did identify certain hindrances to their activities, including concerns about legal security, the functioning of public administration, and labor law flexibility. The predictability of economic policy received the lowest rating, with 63.6% of respondents expressing negative comments, followed by concerns about the tax system and tax administration. A notable percentage of respondents also voiced concerns about tax burdens and the political and social stability of the country.

While 66.4% of surveyed enterprises assessed the condition of the Polish economy positively, there was a significant decrease in positive opinions compared to the previous year, reflecting a decline of almost 6 percentage points. Over 33% of respondents regarded the economy as unfavorable, marking the worst result since 2012. This assessment correlates with the impact of recent events, as nearly three-quarters of respondents reported negative effects on their businesses from the energy crisis, rising energy prices, and inflation.

The industry's situation was perceived to be deteriorating by more entrepreneurs compared to the previous year, with a 9-percentage-point increase in negative indications. Nevertheless, the majority (52.7%) still assessed their industry positively. However, over 36% of respondents believed that the situation in their industry would further decline in the coming year.

Dr. Gutheil emphasized that despite the deterioration in the macroeconomic situation, the overall condition of enterprises appeared relatively stable, indicating a level of resilience amid challenging circumstances.

Respondents generally expressed cautious optimism about the future, with 8 out of 10 expecting an increase or maintenance of turnover at current levels. Export revenues were forecasted to remain relatively stable, with almost two-thirds of respondents expecting them to be on par with the previous year, and one in five predicting an increase. Most companies anticipated no change in employment, while one in four anticipated an increase in workforce. Additionally, higher employee salaries were projected, with an average wage increase of 9.8%. Approximately 25% of companies planned to increase investment outlays, while a similar percentage anticipated reduced outlays.

More than 61.8% of entrepreneurs expressed interest in receiving information about Poland's accession to the eurozone. Interestingly, investment decisions were largely independent of EU subsidies, as only one in ten entities deemed them crucial or significant in this regard.

The survey highlighted several key concerns for the coming year, as identified by over four-fifths of respondents. These included energy and raw material prices (81.8%), labor costs (67.7%), economic policy framework conditions