5th Anniversary of the Scandinavian-Polish Chamber of Commerce

XIV. Nordic investment in Poland OutlookXIV. Nordic investment in Poland OutlookDuring the first part of the analysed period a weak global economic activity, shrinking privatization sources inthe light of the war in Iraq and the growing anxiety regarding terrorist attacks in countries of main investorscontributed to a decline in a number of FDI flows to Poland 10 .Then, a significant 100% plus increase of FDI to Poland occurred in 2004 when Poland joined the EuropeanUnion. This level was reached mainly due to reinvested profits and a decline in corporate tax.A good world economic situation in 2004-2007 let the number of FDIs to Poland steadily increase. The flow ofFDI was especially high in 2006-2007, while 2007 was the year when the biggest level of FDI flow to Polandwas recorded. A one-year-fall of FDI in 2005 was a result of smaller investments in the equity capital andreinvestment earnings 11 . As a consequence of the global economic crisis, the FDI flow to Poland in 2008 wasaround one third lower than in 2007.According to the National Bank of Poland the estimated FDI inflow to Poland as of the end of October 2009reached over 6 billion EUR, which accounts for 68% of the figure for the same period the year before. 12Still Poland is even expected to strengthen its position and attract more direct investment during theglobal crisis.1.3. The country of origin of major investors in PolandCurrent FDI in Poland comes from 62 world economies 13 . More than 80% of FDI value has its origins in EUcountries, but the US also has a significant contribution (See Chart 2).Chart 2. The country of origin of main investors in Poland in 2002-2008Table 2. Foreign direct investment in Poland, flow in 2007 and 2008 (million EUR)Country of origin flow in 2007 flow in 2008 number of entities 2007DENMARK 471,7 191,0 674FINLAND 291,4 261,8 167NORWAY 154,4 50,4 295SWEDEN 813,2 1110,7 646SCANDINAVIA 1730,7 1613,9 1782FRANCE 1891,0 566,8 1075GERMANY 2967,7 1618,6 5576GREAT BRITAIN 647,7 317,9 960LUXEMBOURG 1006,2 1339,8 626NETHERLANDS 1738,2 1604,5 201117.78USA 847,2 364,4 664Aggregated value of FDI, bln EUR10.478.246.35 6.063.26 3.04 3.3Netherlands Germany Luxembourg France Scandinavia USA Sweden Great Britain Austria Denmark Finland South Korea Norway2.751.761.110.3 0.16Source: NBP and Central Statistical OfficeIn terms of the value of investments in 2007, the most investments came from Germany, France, Netherlands,Scandinavia and Luxemburg.In 2008, with the general decline in the value of investments, FDI from Scandinavia exceeded the value ofinvestments from France and the Netherlands and Scandinavians became the second largest investors, justafter the Germans.Source: SPCC on the basis of the data provided by the National Bank of PolandIn terms of the number of entities in Poland in 2007, Scandinavian companies were just after the German andDutch companies (see Table 2).In terms of aggregated value of FDI between 2002 and 2008 in Poland, the biggest investors came from theNetherlands, Germany and Luxembourg. That last country has been improving its significance since 2005.Among the Nordic economies it is Sweden that has the highest value of FDI. This country has been gainingmore market share since 2004.1.4. FDI main economic activitiesIn 2002-2007 the highest number of FDIs were in the sector of manufacturing, especially in productionof motor vehicles and metal goods. There was a significant increase in the number of FDIs in services,while they fell in agriculture and fishing (See Table 3).10Bezpośrednie inwestycje zagraniczne w Polsce na koniec 2003 roku. Ministerstwo Gospodarki i Pracy, Departament Analiz i Prognoz Ekonomicznych,Warszawa 2004, s. 8.11Zagraniczne inwestycje bezpośrednie w Polsce w 2005 r., Narodowy Bank Polski, Warszawa 2007, s. 15.12PAIiIZ, http://www.paiz.gov.pl/index/?id=227e072d131ba77451d8f27ab9afdfb7#313Zagraniczne inwestycje bezpośrednie w Polsce w 2007 r., Narodowy Bank Polski, Warszawa 2009.245th Anniversary of the Scandinavian-Polish Chamber of Commerce5th Anniversary of the Scandinavian-Polish Chamber of Commerce 25