The report, issued by professional services company PwC Polska and the state-run Polish Development Fund (PFR), explores new trends in foreign investment.
To date, Polish foreign-oriented companies have been focusing on destinations not far from home, according to the study.
In 2020, around 84 percent of Poland’s outward foreign direct investment was concentrated in Europe, the report found.
It includes a league table of promising new business destinations, based on how well countries have coped with the COVID-19 pandemic, and on the impact of geopolitical developments on short-term investor sentiment, among other factors.
High-potential markets: India, Finland, Estonia, Israel, Chile
The five most promising new destinations for Polish investors are India, Finland, Estonia, Israel and Chile, according to the report.
All five are fast-growing markets that seek to further improve their suitability for foreign capital, the study found.
However, “the choice of where and how to invest must be part of a company’s long-term strategy,” PFR’s Piotr Kuba cautioned.
60% of Poland’s foreign-oriented firms plan further expansion
Another finding of the study is that companies that are already active abroad have a clearer picture of the benefits of foreign investment, PwC Polska and the PFR said.
Their survey of 240 Polish large and mid-sized companies found that 60 percent of firms with an international presence were planning to expand further afield.
Meanwhile, 80 percent of companies without foreign operations had no plans to venture abroad.
Rise of protectionism?
According to the report's authors, the climate for foreign direct investment is changing in many countries as a result of factors such as the COVID-19 pandemic, an e-commerce revolution and the need to protect supply chains.
At the same time, "more countries are enacting rules that make foreign investment more difficult,” said Janusz Władyczak, who heads PFR’s export-credit arm, KUKE.
(pm/gs)
Source: pfrtfi.pl, kuke.com.pl