Which Polish industries attract investors?

The Polish Information and Foreign Investments Agency (PAIiIZ) was involved on 82 FDI projects in June, the Polish News Agency (PAP) reports.

Investors may receive subsidies worth PLN 2 billion this year. ‘Most of the investments (19) were made in the BPO (Business Process Outsourcing) sector, 17 in the automotive sector, 10 – in renewable energies. Engineering and metal industries are also popular (5 projects in each) as well as chemical industry (4)’ the communiqué says.

‘Most projects come from the US (16), Germany and Britain (10 each). Moreover PAIiIZ is cooperating on 7 projects from Sweden, 5 from India and 4 from France.’

The Polish Information and Foreign Investments Agency encourages foreign investors to take advantage of EU funding for investments in Poland. So far only 15% of funds allocated for this purpose have been used up. There is still PLN 2 billion waiting for the investors – the PAIIiIZ communiqué notes.

A sum of over EUR 1 billion was earmarked for supporting investments in Poland in 2007-2013. The funds come within the framework of 4.5 Operational Programme Innovative Economy, including EUR 870 million from the EU, wnp.pl reports.

Polish Market

ECONOMIC MONITOR

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• ● In December 2009 and January 2010, as in previous months in the second half of 2009, the Polish economy stood out against other countries in terms of GDP growth. Poland’s economic growth was higher than projected and higher than in other European countries.
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• In 2009 construction output increased by 3.7%.
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• Retail sales increase in most product groups.
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• On the Warsaw Stock Exchange, stock prices were very volatile in January 2010.
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• At the end of December 2009 the registered unemployment rate (claimant count rate) amounted to 11.9% versus 11.4% in November.
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• At the end of January the president signed the 2010 budget bill into law. The bill was adopted by the parliament on December 18.
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• In the fourth quarter of 2009 the Polish economy turned out to be more resistant to the global crisis than had been projected and than the economies of Polish neighbours, something which boosts optimism in forecasts for 2010 and the next years.
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WEEKLY MARKET ANALYSIS

Retail sales up again in June
Retail sales growth in nominal terms accelerated in June to 6.4% y-o-y from 4.3% y-o-y in May. The increase was higher than expected. In real terms, retail sales growth accelerated to 4.5% y-o-y from 2.0% y-o-y. June was a consecutive month with retail sales figures stronger than expected, which indicates that consumption is recovering after it slowed significantly at the beginning of the year. Private consumption is driven by an improvement on the labour market coupled with a rise in disposable incomes. In Q2 2010 retail sales grew by around 3% y-o-y in nominal terms and around 1% y-o-y in real terms. On the basis of retail sales and industrial production data, it can be estimated that the GDP growth rate was close to 3%.

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