Poland one of EU’s top markets for FDI with Warsaw overtaking Barcelona AND Brussels
Poland is among the top European markets for foreign direct investment (FDI), according to a new report by multinational professional services firm Ernst & Young.
The country ranked sixth in EY’s Europe Attractiveness Survey published this month, which looks at how European countries can attract more FDI.
The report presents a mixed picture of FDI in Europe: it fell by 13 percent in Britain and Germany, growing by just 1 percent in France. In contrast, it increased by over 20 percent in a handful of other countries, growing by a massive 52 percent in Ireland, which was boosted as it came to be seen as an alternative to Britain due to Brexit, followed by Poland.
In Poland, FDI surged by 38 percent in 2018, putting it in sixth place in Europe in terms of FDI, behind Britain, France, Germany, Spain and Belgium. 272 FDI projects were completed in the country that year, up from 197 in 2017.
“Traditional industrial sectors such as transport, chemicals, logistics and machinery almost doubled to 127 projects in 2018 and now collectively account for 47 percent of total FDI in the country,” the report stated.
Paris and London remain the most attractive European cities for foreign investors, but as the report’s authors put it, they have lost their shine. Thirty percent of respondents in EY’s survey say Paris is the most attractive city, but this has fallen by 7 percent in the past twelve months. For London, it has dropped to 25 percent, a change of 9 percent.
Meanwhile, Warsaw is among the cities that have become more appealing, along with Munich and Madrid. Seven percent of respondents picked the Polish capital as their most attractive city, two percent more than a year earlier. As a result, Warsaw has overtaken Barcelona and Brussels.
“In short, competition between European cities for investment has never been more equal — or intense,” the report noted.
To retain its attractiveness on the global stage, Europe needs to focus on four factors, all beginning with T: talent, trade, technology and tax, EY’s analysts concluded.