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Poland ranked second most attractive European country for investment


Poland is the second most attractive destination for foreign direct investment (FDI) in Europe in the next three years, according to a survey of 840 executives carried out by Ernst & Young for its European attractiveness survey 2012, released on 20 June. The country received 10% of investors’ votes, only behind Germany at 35%. (By way of comparison, Poland attracted 3% of all FDI projects in Europe last year).

According to Ernst & Young, Poland is seen as “a beacon of hope in the CEE region, which witnessed a phenomenal decline in its attractiveness” last year, thanks to its strong domestic demand and robust growth through 2011. The country has been able to win a positive image among executives for its well-qualified and productive workers, a pro-business environment and transparent tax and legal systems, the report notes, adding that Warsaw has emerged as a leading financial centre in the region, while Krakow has been rated as a leading emerging city worldwide for BPO projects. And FDI inflows into Poland, once dominated by labour-intensive industries, are increasingly knowledge-centred. The results of the survey indicate that investors reckon Poland is on a path of sustainable attractiveness, which means FDI to the country is likely to progress, the study concludes.

The European attractiveness survey 2012 ranks Poland 8th in Europe for the number of FDI projects in 2011, the only Central and Eastern Europe country except Russia to make the top 10. It attracted 121 new FDI projects last year, down by 15% compared with 2010, sending it one notch lower from 7th in the 2011 survey. The investments created a total of 7,838 jobs, compared with 12,366 in 2010.

The automotive sector accounted for 11% of all FDI projects in Poland in 2011, followed by business services (9%), electronics (9%), machinery (9%) and food processing (6%). US companies accounted for 20% of the new FDI projects, followed by firms from Germany (15%), the UK (14%), France (6%), and South Korea (6%).

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