Poland the sixth most attractive place for investment
The UNCTAD 2011 World Investment Report has been published, according to which Poland has moved up from 11th to 6th place in the investment attractiveness rankings. In the same report Kraków, the capital of Małopolska province, is the best place for BPO location.
Poland is strengthening its already well-established strong position in the world investment arena. We are behind such international giants as China and the United States, but ahead of Germany and the United Kingdom.
Against this background, according to an IbnGR report published at the beginning of 2011 Małopolska province holds fourth place in the country as regards attractiveness for investment. The region is maintaining its position, making the biggest progress in the very category concerning activities aimed directly at investors: development and promotion of a regional investment offer, direct contact with the business environment, international cooperation and a regional investor service system. Such a significant change in the province’s position in this category is all the more pleasing as it comes during the operation of the Małopolska Business Centre (Małopolska Regional Development Agency SA, Małopolska Province, Kraków Technological Park) and the commencement of a range of initiatives directed at investors.
CeBiM is presently undertaking 4 projects. To date, a sum of 6.5 mln PLN has been received for all current initiatives. The Centre has already provided service to nearly 200 international investors, and at fairs and conferences in Bombay, Chicago, New York, Florida, Shanghai, Hannover and Edinburgh close to 40,000 people have become acquainted with Małopolska’s offer; over 300 individual exporters have received assistance by direct contact in finding markets for their goods.
During the operations of CeBiM, Małopolska has achieved 2nd place in the FDI Magazine rankings (Financial Times), in the category of best promotional strategy for Direct Foreign Investment, 2nd place in the ranking of the Top 5 Eastern Regions FDI Strategy, 7th place in the ranking of the best regions in Eastern Europe, and in 2010 Małopolska was near the top of the most attractive Polish regions for investment according to IBnGR 2010. Kraków, the capital of Małopolska, took 1st place in the ranking of the Top 10 Emerging Outsourcing Cities in the category of “emerging locations”, which made the city 11th in the Top 100!!!
World Investment Report
Despite the drop in investment in Poland during 2010 (from 13.7 to 9.7 bln USD) there is currently a clearly observable growth trend in international projects – the value of BIZ inflows after the first five months of 2011 amounted to 4.2 bld EUR, which is 86% of the value of BIZ from the first five months of 2010 and 62% of the total from the same year. In the European context this trend has already been noted in the Europe Investment Attractiveness study published each year by E&Y, which showed that in 2010 Poland recorded the largest growth in the number of BIZ projects in all Europe. 40% more projects were undertaken in 2010 than in 2009.
This year’s UNCTAD World Investment Report forecasts a strengthening of the dynamics of direct foreign investment flow in 2011, estimating its growth from USD 1.4 to 1.6 trillion, which would match pre-crisis levels. In 2012 and 2013, estimated BIZ inflows should reach USD 1.7 and 1.9 trillion respectively. Among the factors responsible for creating such expectations of growth in world BIZ are: growing transnational corporate financial reserves resulting largely from slowing investment during the crisis; restructuring of many companies forced by the crisis (including the moving of operations to cheaper locations and the growing role of BPO, visibly strong as in the case of Poland); rising market valuations (investors will buy before prices increase even more); selling off of shares in companies taken over by governments as part of attempts to battle with the crisis. As regards recipients of investment, ongoing corporate and industrial restructuring, privatization resulting from fiscal balance and the expansion of public assistance programs along with growth in emerging economies should create new investment possibilities. The return of world investment flows to the level forecasted may be hampered by such risk factors as unpredictability in global economic management, the possibility of a general debt crisis and fiscal and financial imbalances of the sector in some developed countries, as well as a growth in inflation and signs of overheating in the largest of the emerging economies.
In 2010 the growth of emerging economies, which are the new driving force of BIZ, became more visible. For the first time, developing countries and economies undergoing transformation absorbed over half of the world’s BIZ flows. Furthermore, this group is investing increasing amounts in the form of BIZ – in 2010 there was a 21% growth in investment in these countries, and they currently constitute 29% of global BIZ. Six developing and transforming economies found themselves among the 20 largest investors in the world.
The outstanding position of Kraków, recognized by UNCTAD as the best place for the growth of BPO projects in the category of Locations for global services outsourcing: Top 10 emerging cities, confirms the consolidation of the trend in which Polish cities are viewed as the best locations in the world for activities related to services for business.
More at www.paiz.gov.pl
