The dynamic development of Polish investments abroad

In 2023, Polish Direct Investments abroad reached a record value of USD 10.4 billion, which means an increase of 64% compared to the previous year and as much as 228% compared to 2021. These dynamic changes testify to Poland’s increasing involvement on the international arena.

According to the analysis of  the NBP’s balance of payments data by the Polish Economic Institute, the development of Polish investments abroad in 2023 focused on debt instruments, and this is a significant change compared to 2022, when reinvestments of profits dominated (accounting for 89% of the net value of transactions).

Key markets and sectoral capital distribution

The largest Polish direct investments were concentrated mainly outside the European Union, with the highest allocations in countries such as the USA (USD 594 million), Montenegro (USD 468 million), Jordan (USD 414 million), Romania (USD 216 million) and Kazakhstan (USD 100 million). It is worth noting the dominance of investments in the renewable energy sector, where Polish companies spent 42 percent of their capital expenditure on greenfield projects – a total of USD 2.36 billion in 2023.

PAIH’s support

The development of Polish investments abroad is supported by the Polish Investment and Trade Agency (PAIH), which plays a key role in promoting Polish enterprises on the international arena. PAIH not only facilitates establishing business contacts, but also offers support in terms of access to market information and sector analyses, which is invaluable when entering new markets.

Future prospects

There are many indications that Polish companies will continue their foreign expansion, but they must face challenges such as regulations limiting foreign capital and administrative procedures that may affect the speed of investment implementation.

Sources:

• Polish Economic Institute,Tygodnik Gospodarczy, nr 28/2024,
• Lloyds Bank, Foreign direct investment (FDI) in Poland,
• UNCTAD, World Investment Report 2023.