Poland – a key location for investment in Europe

According to EY’s study “Investment attractiveness of Europe 2024”, the number of investments and jobs created in Europe decreased in 2023. Compared to the European average, the data for Poland can be considered positive.

Poland in the black

Despite an overall 7% decline in FDI in Europe, Poland saw a 21% increase in investment-related jobs. According to the report, companies from the US and Germany played a key role in shaping the Polish investment scene. In 2023, the United States completed 52 investment projects. This resulted in the creation of 9805 jobs. Thus, the US accounted for 36% of direct foreign investment in Poland. On the other hand, last year our western neighbours completed 36 investment projects. This translated into 16% of FDI in Poland. The creation of new jobs in 2023- 2027 makes Germany the largest European investor in our country.

German investments in Poland were focused in the regions of Silesia and Małopolska. These are regions that offer appropriate industrial infrastructure, qualified staff and a convenient location on the map of Poland. This facilitates logistics and supply chain management. It is worth noting that in the last five years alone, four large German investment projects have been implemented there. Which should create about 6800 new jobs in total.

Competitive Central and Eastern Europe

The large domestic market attracts German investors, which allows Germany to remain the investment leader in Central and Eastern Europe. In this region alone, in 2023 German companies completed 176 investment projects. This translated into about 21,000 jobs.

Poland faces increasing competition from countries in the region, such as Serbia, Romania and Hungary. These countries are also trying to attract German companies by offering favourable conditions. In 2023, they attracted 20, 16 and 15 German investments, respectively.

Challenges for the future

In the face of decreasing interest in Europe from American investors (-15% across Europe compared to 2022), the effective attraction of German capital remains crucial for the further development of the Polish economy. Further strengthening of relations with German partners and offering attractive conditions for investors may contribute to maintaining Poland as a leading investment destination in the region.

Source: EY Report – “Europe’s Investment Attractiveness 2024”