POLISH INFORMATION AND FOREIGN INVESTMENT AGENCY Foreign investment climate in Poland Dariusz Duda Project Manager Foreign Investment Department Warsaw, January 2016 1
Strategic location in the heart of Europe Key Facts Official name Official language Capital Area Population Currency Tax rates Time zone Republic of Poland Polish Warsaw 312 700 sq km (6 th in EU) 38.5 mn (6 th in EU) Polish Złoty 100 CNY ~62.2 PLN 1 USD ~4.09 PLN 1 EUR ~4.45 PLN CIT 19% PIT 18%, 32% VAT 23% UTC +1 (Winter) UTC +2 (Summer) Source: National Bank of Poland, January 2016
Source: GDP annual growth rates, Eurostat, June 2015 European growth champion
Future looks just as bright Real GDP growth forecasts (%) 2015 (f) 2016 (f) 2017 (f) Romania 3.5 4.1 3.6 Poland 3.5 3.5 3.5 Slovakia 3.2 2.9 3.3 Czech Republic 4.3 2.2 2.7 Hungary 2.9 2.2 2.5 Bulgaria 1.7 1.5 2.0 EU28 1.9 2.0 2.1 Eurozone 1.6 1.8. 1.9 Germany 1.7 1.9 1.9 Source: Eurostat, European Commission, November 2015
Vast pool of young labour force National unemployment rate: 9.6% Registered unemployed by regions 25 20 15 10 5 Zachodniopomorskie 76 400 Pomorskie 76 300 Kujawsko- -Pomorskie 103 000 Warminsko- -Mazurskie 80 600 Podlaskie 53 200 0 01/01/2004 01/01/2008 01/01/2012 Lubuskie 37 900 Wielkopolskie 91 800 Mazowieckie 216 300 25 20 15 10 5 - Population by age classes in CEE countries 25-49 15-24 0-14 > 150 000 110 000 150 000 90 000 110 000 40 000 90 000 < 40 000 Dolnoslaskie 97 000 Opolskie 33 800 Lodzkie 106 900 Slaskie 146 400 Swietokrzyskie 63 000 Malopolskie 115 600 Lubelskie 100 500 Podkarpackie 117 800 Source: Central Statistical Office, November 2015
Productivity growth > wages growth Gross wages (EUR) Productivity and wages growth Zachodniopomorskie 836 Lubuskie 838 1 100 1 000 1 099 900 999 800 899 < 800 Dolnoslaskie 1 141 Pomorskie 943 Wielkopolskie 902 Kujawsko- -Pomorskie 814 Opolskie 886 Lodzkie 954 Slaskie 1 114 Warminsko- -Mazurskie 777 Mazowieckie 1 078 Swietokrzyskie 850 Malopolskie 921 Podlaskie 790 Lubelskie 838 Podkarpackie 806 120 100 80 60 40 20 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Annual productivity in PLN th. Annual average wage in PLN th. Minimum gross wage: 1 850 PLN (~416 EUR) Source: Central Statistical Office, December 2015; Eurostat, 2013
Employer-friendly social security 19.21 22.41 27 34 35.2 Employer s social security contribution Total cost for 100 100 Gross wage employer 100 100 100 Employee s social security contribution 22.71 Poland 17.5 11 Czech Hungary Republic 13,4 Slovakia Average gross wage comparison does not reflect total labour cost social security contributions make a significant difference Source: OECD, CzechInvest, HITA, Sario, 2016
Academic hub in each major city 24 mn people aged 49 and less (64%) Almost 1.47 m students (2014/2015) More than 424 000 graduates (2014) Over 46 thousand foreign students from 149 countries (3.1% of all students) More than 90% of students speak foreign languages Population with higher education: 17% 438 higher education institutions 19 universities 25 technical universities 72 academies of economics 200 different majors taught Growing number of science students Szczecin Zielona Gora Wroclaw Poznan Gdansk Bydgoszcz/Torun Lodz Opole Katowice Olsztyn Warsaw Kielce Krakow Students Bialystok Lublin Rzeszow Graduates Warszawa 247 515 63 884 Krakow 165 857 46 475 Wroclaw 122 146 31 609 Poznan 116 969 32 505 Katowice aggl. 105 478 31 950 Gdansk aggl. 92 203 23 760 No. of students (thousands) 201 > 151 200 101 150 51 100 50 < Lodz 80 676 21 343 Lublin 69 658 20 469 Source: Central Statistical Office, November 2015
Quickly developing road infrastructure Distance to (km) Hamburg Rotterdam Wroclaw 630 1 000 Poznan 550 920 Katowice 800 1 180 Krakow 880 1 250 Lodz 750 1 120 Warsaw 850 1 230 Gdansk 770 1 250 Net cost of a 40 container transport by truck City Gdansk Warsaw Katowice Frankfurt am Main Amsterdam 2 150 EUR 2 450 EUR existing in construction Source: General Directorate for National Roads and Highways, December 2015
Dense airport coverage Direct flights to major international destinations GDAŃSK SZYMANY Warsaw Kraków Gdańsk Wrocław Tokyo, Beijing, Dubai, Toronto, New York, Chicago, London, Berlin, Frankfurt, Munich, Paris, Dublin, Milan, Brussels Berlin, London, Frankfurt, Munich, Paris, Dublin, Milan, Brussels Berlin, London, Frankfurt, Munich, Paris, Dublin London, Frankfurt, Munich, Paris, Dublin, Brussels SZCZECIN ZIELONA GÓRA POZNAŃ WROCŁAW BYDGOSZCZ ŁÓDŹ MODLIN WARSZAWA LUBLIN Rzeszów Poznań Lublin Bydgoszcz London, Frankfurt, Munich, Dublin London, Frankfurt, Paris, Munich, Dublin London, Frankfurt, Dublin, Brussels London, Frankfurt, Dublin RZESZÓW Overseas flights KATOWICE KRAKÓW European flights Domestic flights Passengers served by airports (in mn) Katowice London, Paris, Milan Łódź London, Munich, Dublin Szczecin London, Dublin Source: The Civil Aviation Authority, January 2016
Doing Business 2016 DOING BUSINESS 2016 RANK DOING BUSINESS 2015 RANK DOING BUSINESS 2014 RANK DOING BUSINESS 2013 RANK DOING BUSINESS 2012 RANK 25 32 45 55 74 Every region has a leading champion in the scope of improvements made since 2005 whether Poland for OECD high-income economies, China for East Asia and the Pacific or Colombia for Latin America and the Caribbean. Source: World Bank, Doing Business 2016, 2015, 2014, 2013, 2012
PAIiIZ s pipeline Total of 185 potential FDI projects serviced currently in pipeline Total value of investments: EUR 4.16 bn Total number of new workplaces: 37.8 thous. Main sectors: Major countries investors: BSS + ICT (61) USA (45) Automotive (38) Germany (26) R&D (15) Japan, France (13) Aviation (13) UK, Italy, South Korea (11) Food processing (11) Source: PAIiIZ portfolio, January 2016
Investment incentives (state aid) in Poland Tax breaks CIT exemption in Special Economic Zone Real estate tax exemption Cash support Government grants strategic projects EU Funds grants for R&D Zachodnio pomorskie 35% Kujawsko- Pomorskie 35% Mazowieckie Lubuskie Wielkopolskie 15-35% 35% Dolnoslaskie 25% 25% Pomorskie 35% Lodzkie 35% Opolskie Slaskie Warminsko- Mazurskie 50% Swietokrzyskie 35% 35% 25% Malopolskie Podlaskie 50% Lubelskie 50% Podkarpackie 35% 50% EU Funds in Poland 2007 2013 Total: EUR 975 bn Poland: EUR 69 bn (7%) 2014 2020 Total: EUR 960 bn Poland: EUR 82.5 bn (8%)
Portuguese investments in Poland Key figures Major investors Portuguese FDI in Poland totaled 1.9 billion EUR at the end of 2014 146 companies with Portuguese capital registered in Poland Portuguese companies are present in the following sectors: financial, retail, construction, automotive, plast ic processing, renewable energies, food & beverage Most of Portuguese enterprises are located in Mazowieckie, Wielkopolskie and Łódzkie voivodeships Source: Polish and Portuguese Central Banks
Thank you for your attention Dariusz Duda dariusz.duda@paiz.gov.pl 00-585 Warszawa, ul. Bagatela 12 tel. (+48 22) 334 98 75, fax (+48 22) 334 99 99 e-mail: invest@paiz.gov.pl