Foreign investments of Polish capital in 2023

For the second time , Polish direct investments abroad exceeded the USD 10 billion threshold. Previously, this was achieved  in 2016, while 2023, it was $10.4 billion.

However, foreign investment in Poland in 2023 amounted to USD 28.7 billion, down almost 9% compared to  2022 (USD 31.5 billion). The ratio of Polish direct investment abroad to foreign direct investment located in Poland amounted to 36 per cent and this is the third highest result , after 2010 and 2016.

The structure of Polish capital investments

According to the National Bank of Poland’s (NBP) balance of payments data, the dominant form of transaction in 2023 was debt instruments, rather than reinvestments, as was the case in 2022.

In addition, USD 202 million were assets acquired by Polish entities as a result of mergers and acquisitions, and USD 2.36 billion were greenfield projects announced in 2023,  (the result was 2.6% higher than in 2022, but 27% lower than in 2021).

Polish FDI in 2023

Last year, Polish companies invested the most in Luxembourg (about USD 4.6 billion) and the Czech Republic (about USD 4.4 billion), with an average exchange rate of PLN 4.25 per USD 1 in 2023. The fDi Markets database shows that in 2023, 63 Polish companies announced a total of 81 greenfield projects. The largest number of investments were announced in the USA (US$594 million), Montenegro (US$468 million), Jordan (US$414 million), Romania (US$216 million) and Kazakhstan (US$100 million). Almost 35 percent of investments were industrial, while 20 percent were in the energy sector.

The structure of Polish FDI

The largest number of investments (42 per cent of total capital expenditure) were in the RES sector. Among the leaders in this area are two Polish companies: Respect Energy, with investments worth USD 499 million (renewable energy projects in Montenegro – ammonia and hydrogen production, wind and solar power plants and energy storage, as well as an offshore wind farm in Estonia) and Hynfra, which invested USD 414 million in a green ammonia plant in Jordan.

The increase in Polish direct investment  in 2023 highlights the growing global competitiveness of Polish companies and their dynamic development on international markets. Despite the decline in foreign investment in Poland (from USD 31.5 billion in 2022 to USD 28.7 billion in 2023), Polish capital is actively looking for new opportunities, especially in  infrastructure, food and green technology . Foreign investments of Polish capital reflect the need to diversify markets, which is important in the context of the weakening of the economies of the European Union.

Sources:

• UNCTAD The United Nations Conference on Trade and Development), World Investment Report
• fDi Markets, Cross-border investment monitor
• National Bank of Poland (NBP)
• The Polish Investment and Trade Agency (PAIH)