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Poland gains in ranking of European attractiveness


Poland moved up one notch to 7th in Europe in terms of the number of foreign direct investment (FDI) projects in 2010, according to an annual report by Ernst & Young. At 143, the number of new FDI projects attracted by the country last year was 40% higher than the year before, a bigger increase than in any other European economy and almost reversing the 2009 decline of 42% (in Europe as a whole the volume of FDI projects increased by 14% last year). Russia was the only country from Central and Eastern Europe to score higher (4th place with 201 foreign direct investments).

The new FDI projects brought a total of 12,366 new jobs, a 64% increase from 2009 (though still way below the 2008 level) and representing 9% of all new jobs generated by FDI projects in Europe (compared with 6% in 2009). This gave Poland third place on the continent, only behind Great Britain and France.

By way of comparison, Hungary attracted 88 FDI projects in 2010, which created 8,572 new jobs, and the Czech Republic 71 (4,815).

In terms of sector, automotive firms topped the list (12% of new FDI projects in Poland last year), followed by business services (8%).

According to the report, though the “UK and France remain FDI leaders in Europe, they are losing market share to countries such as Germany and a host of smaller cost-competitive countries, for example Poland, Hungary and the Baltics”. Poland’s key strengths are perceived to be “strong economic growth prospects, low costs and growing numbers of consumers”, making it a “very attractive destination for industrial companies looking to locate in Europe”.

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