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Poland emerges as a key beneficiary of FDI inflows, according to EY study

May 25, 2023

Foreign Direct Investment (FDI) plays a significant role in the global economy, determining a country’s development. For over two decades, EY has been analyzing the volumes of foreign investments in Europe in the study called European Investment Attractiveness. The last research for 2022 sheds light on the prevailing investment stagnation in Europe. It shows that the number of investment projects in Europe has only increased by 1% to 5,962, with a decrease of 16% in planned job positions.

Optimistically, the research identifies Poland as one of the primary beneficiaries of FDI inflows in Europe. The country has successfully attracted a significant amount of foreign investment, outperforming other European nations. The number of FDI in Poland increased by 23% in 2022, reaching 237, while the number of jobs generated by FDI in 2022 reached 18,400.

“Investors reconfigure global supply chains, and Poland may be one of the beneficiaries of this trend due to its central location in Europe, combining cost attractiveness of investments with highly qualified workers. This particularly applies to the manufacturing sector and back-office functions. Additionally, the significance of investments made by entities from Ukraine and Belarus is growing. Capital relocations from these countries have influenced the increase in investment projects in Poland in 2022.” said Marek Rozkrut, Partner and Chief Economist for EY in Europe and Central Asia.

Tech companies have played a pivotal role in driving FDI. The progressing digitization of European economies has made software and IT services the number one sector for FDI in 2022. With an 8% year-on-year growth, they accounted for 20% of all projects announced in 2022.

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