CEC Briefs are our daily and weekly reports on a specific current topic of political or regulatory interest provided direct to our clients. The article archive is then posted here for open searches a month after it is sent out to our clients. Please revisit regularly for updated material. If you wish to receive our updates as they are released, please see our Intelligence Offer.

POLAND: Record-high investments abroad

Poland’s central bank NBP published its annual report on Polish FDI. In 2016, investors expended 31.8 billion PLN, which resulted in a substantial increase of approximately 69% when compared to 2015. This number was largely made of investments in market shares and other equity forms, amounting to 22,7 billion PLN. 2016 confirmed Luxembourg (19,1 billion PLN), Sweden (3,9 billion PLN), and Hungary (3,7 billion PLN) as the top 3 markets for Polish residents to invest in. At the same time, they chose to disinvest from the Cypriot market, which saw a loss of 6,9 billion PLN in Polish FDI. The top sectors favoured by Poles turned out to be the professional, science and technical sectors, as well as information and communication, and trade.
Investors saw a return of approx. 4,9 billion PLN, with Lithuania, Germany, and Luxembourg being the most profitable markets. Unsurprisingly. Polish investors, who decided to locate their funds in the United Kingdom noted a 700 million PLN loss, but according to some experts this result will not discourage further investments in the UK. Polish companies are also beginning to test waters in more exotic markets such as Africa and China, and these destinations are likely to become more popular in the coming years. The growth of outward Polish FDI is encouraging, and may be a sign of maturity among Poles, as well as the growth of financial capabilities. Over the past years, outward Polish FDI developed a positive trend, which is likely to continue.