Over 100 delegates attended the BPCC’s CEO Forum – Why Poland? event in London at which the keynote speaker was Poland’s finance minister, Prof. Jacek Rostowski. read more
If you are an international firm, based in the UK and doing good business in continental Europe but have yet to enter the Polish market – either as an exporter or investor – this is for you. read more
By Kazimierz Kirejczyk, president, REAS read more
By Mateusz Polkowski, senior research analyst, Jones Lang LaSalle read more
By Mateusz Walewski, senior economist, PwC read more
By Sławomir Huss, manager, advisory department, PwC read more
By Paul Jasniach, senior manager, advisory department, PwC read more
If you are an international firm, based in the UK and doing good business in continental Europe but have yet to enter the Polish market – either as an exporter or investor – this is for you.
Poland is a low-risk, high-opportunity market. Growth is far higher than in western Europe (GDP, consumer spending, corporate investment), yet risk (political, economic, systemic) is far lower than in eastern Europe.
Market size: 38.2 million people of whom nearly half live within the largest ten agglomerations/conurbations.
Member of European Union, NATO, Schengen Group (passport-free zone within continental EU).
Poland has been in catch-up mode since the political and economic transformation of the early 1990s. Since 1992, GDP has grown by an average rate of 4.5% a year; Poland was the only EU member state not to slip into recession in 2009. This robust performance is based on political and economic stability. Over that same period, the UK’s economy grew at less than half that pace – an annualised growth rate of 2.2%. According to an HSBC forecast, its economy is expected to grow by an average of 3.9% a year every year until 2050, whereas the UK’s economy is expected to grow by an average of 1.7% annually over the same 40 year period. This suggests a period of six decades during which Poland will have been growing at double the pace of the UK; this signals many business opportunities for decades to come.
The Residential Market
By Kazimierz Kirejczyk, president, REAS
The residential market in Poland is by far the largest market in the CEE region. Amongst the ten EU member countries within the CEE, Poland comprises approximately 40% of all residential units built in the region. Despite the market slowdown of 2009 Warsaw remained the largest single market and it continued to be one of the most stable housing markets within the CEE. Out of 25 cities with the largest housing production in the region, almost half are Polish cities.
The residential market in Poland has developed in a fairly sustainable way during the last 15 years, growing proportionally to the overall growth of the country’s economy, development of the mortgage industry and positive demographic trends in the largest Polish metropolises. Although the global property boom and the EU accession had some impact on the growth of the market in the years 2005-2008, the key factors creating demand for new housing were:
By Mateusz Polkowski, senior research analyst, Jones Lang LaSalle
Poland is the largest office market in the CEE region in terms of both supply and demand. Total office stock in Poland is estimated at over 5,5 million m2 of which 3,4 million m2 are located in Warsaw. The city has lately become a major financial hub in this part of Europe which is demonstrated by a surge in the number of international companies operating in the city and a dynamic Warsaw’s stock exchange. The Polish cities of Kraków and Wrocław amongst other are one of the most sought-after locations in Europe for the Business Process Outsourcing and Shared Services Centres, with Kraków ranked the best emerging city for BPO business in the Global Services ranking in 2010. Recent arrivals to Poland in this field include: Sony, Nycomed and IKEA.
Poland's finance minister answers question 'Why Poland?' at BPCC London CEO event
The total Polish pharmaceutical market is the 6th largest in Europe and worth over USD 6 billion, and is expected to grow by 5.0% through 2015.
Over 100 delegates attended the BPCC’s CEO Forum – Why Poland? event in London at which the keynote speaker was Poland’s finance minister, Prof. Jacek Rostowski. Among the business leaders present in the audience were investors and businesses already present in the Polish market and many more thinking of doing so.
The venue, at Jones Lang LaSalle’s UK headquarters in Hanover Square was ideal for this event which took place on the hottest day of the year so far; the air conditioning kept everyone cool.
Poland moves up the value chain in high-tech manufacturing
By Mateusz Walewski, senior economist, PwC
According to the latest available Eurostat data for 2007 Poland with the total number of 56,185 high-tech entities is the fifth largest EU market according to the number of high-tech firms. Between 2003 and 2007 (so before the recent economic crisis) the total number of high-tech firms in Poland increased by 28%. Around a quarter of the total number of high-tech businesses in Poland are those engaged in high-tech manufacturing.
PwC asseses that over the same time, the number of people employed in the high-tech and knowledge-intensive sectors in Poland increased by 16%, and the employment growth rate for this sector was higher than for the economy as a whole, where it amounted to 12%.
Total production value of the high-tech sector increased in nominal terms between 2003 and 2007 by 35%, and for high-tech manufacturing by as much as 56%. Gross investments in the sector also recorded dynamic growth rates in the years covered by the Eurostat data. In 2006 investments were 25% higher than in 2003 for the high-tech sector as whole and by 46% for high-tech manufacturing.
Opportunities in Poland’s rapidly growing chemicals sector
By Sławomir Huss, manager, advisory department, PwC
The chemical industry in Poland covers a wide variety of product segments, from base and agricultural chemicals through specialty and fine products to pharmaceuticals. The value of the market in 2009 was estimated at €17.5 billion (PLN 76 billion) , which accounted for 3.4% of the total value of the European chemicals market.
The most interesting opportunities in the coming years centre around the base and agricultural chemicals segments. These account for 45.4% of the chemicals market value in Poland, with a total revenue of €8.0 billion (2009). The Minister of State Treasury has announced a relaunch of the privatisation process for the most significant Polish chemical production plants (ZA Puławy, ZCH Police, Ciech SA, ZAK, ZAT). The process is intended to start in mid-2011. According to the ministry’s declaration, it will seek investors willing to acquire controlling stakes in Poland’s leading chemical producers. The privatisation will be led separately for all the entities, however an investor willing to take over more than one entity may be treated preferentially.
BPO services still showing much upside
By Paul Jasniach, senior manager, advisory department, PwC
The BPO sector in Poland encompasses around 300 shared services centre (SSC) and business process outsourcing (BPO) operations that employ approximately 50,000 people. It is easy to see why it is one of the dominant sectors in Poland. If R&D and software development centres are included in the mix, Poland can be considered one of the market leaders for the sector in the CEE region. It is envisaged that over the next few years the number of people employed in this sector will continue to grow, suggesting confidence in the quality of service delivered in Poland.
Poland has been successful in this sector due to several factors. Poland is one of the largest country in the CEE region with over 38 million inhabitants, which provides a huge labour pool. Education has always been important in Poland and this creates one of the biggest advantages. Not only is the labour pool large, it is well educated. Over 400,000 graduates a year with strong European language proficiency together with technical and accounting skills are available to enter the sector.