Introduction
With over 37,6 million people, it is the largest market among Central and Eastern European countries and top 10 largest economies in the UE.
Over the past 30 years, Poland has emerged as an important and dynamic economy. The country’s convenient location in the heart of Europe makes Poland the perfect investment destination between Eastern and Western markets.
After the political changes of 1989 and the transition to a market-oriented economy, Poland has achieved significant economic success. In 2004 it became a member of the European Union (EU). Driven by extensive domestic demand, exports and foreign investment, Poland has developed strong economic fundamentals. This was clearly visible in 2009 when Poland remained the only country in the EU that manager to maintain positive GDP growth.
Poland is one of the largest countries in the European Union (by population) and its GDP in 2023 was 0.2% higher in real terms compared to 2022. All this indicates that Poland will continue to be one of the EU leaders in economic growth rates also in the years to come.
Key growth factors
There are several factors that contribute to the rapid growth of Poland’s economy and make the country an attractive destination for foreign investors at the same time.
People
Poland’s population of over 37.6 million people forms a large and dynamic consumer market. Strong internal consumption is one of the key economic drivers that contribute to the country’s economic stability. The ratio of exports to domestic demand in Poland stands at around 50%, setting it apart from other CEE countries where it exceeds 75%.
Poland offers a well-educated workforce with competitive labour costs. Salaries and wages in Poland, despite a visible rising trend, are still markedly lower than in Western European countries.
Location
The country has a very favourable location in the centre of Europe at the intersection of major trans-European transportation routes. Poland’s major trade partners are, among others, Germany, China, France, the UK, Italy, Hungary, Ukraine and Spain.
Government support
Poland’s investment appeal is further augmented by a range of subsidies and tax incentives available to investors. In 2018 the government started the Polish Investment Zone offering across a whole country tax exemptions. Besides 14 Special Economic Zones are in operation well-prepared investment sites to companies willing to bring their business there.
Potential for growth
Poland’s economic growth is in part due to the sizable support from the EU structural and cohesion funds. Poland is the main beneficiary of these funds, having received EUR 245.5 billion from 2004 to 2023, and expecting EUR 76 billion pledged for the years 2021-2027. The funds will be used for investments in transport infrastructure as well as in the area of innovation and support for entrepreneurship.
Infrastructure
Business across all sectors relies heavily on the overall quality and reliability of infrastructure. Since Poland’s accession to the EU, the annual spending on public infrastructural investment projects has ranged between PLN 60 and 80 billion (EUR 14-19 billion). At the end of 2023, Poland had 5 115,6 km of roads for high-speed vehicular traffic, including 1 849,2 km of motorways and 3266,4 km of expressways and 15 airports in operation nationwide, which handle a total of 52 million passengers a year.
Doing Business in Poland 2024
01 - Legal aspects
Doing Business in Poland 2024
Learn about most popular legal forms, procedures and other duties related to conducting business in Poland.
02 - Taxes
Doing Business in Poland 2024
Learn about: National e-invoicing system, CIT, MDR, tax incentives, PIT, VAT, local taxes and excise duty.
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