Doing business Poland
Poland is located in Central Europe, bordering Germany, the Czech Republic, Slovakia, Ukraine, Belarus, Lithuania and Russian Kaliningrad. The country´s population of 38.5 million is evenly distributed throughout many midsized cities, with an average age of 41. The capital and largest city is Warsaw, with more than 2 million inhabitants, followed by Kraków, Łódź Gdańsk, Wrocław, and Poznań with around 600,000 people each.
Since 1990, the Polish economy has been steadily growing and has become the sixth largest economy by GDP in the European Union. In 18 years the GDP has risen from around EUR 60 billion to almost EUR 490 billion. Even during the 2007 financial crisis, when Germany’s economy crashed by almost 6 percent, Poland’s grew 2.8 percent.
All major cities have implemented policies that attract a large number of foreign direct investments. In 2018, Poland reached EUR 210 billion in total FDI and was home to 429 FDI projects, making the country one of the top FDI destinations in Europe. The population distribution throughout the country and the possibility for regions to adapt their legislation to the specific needs of different industries, have made these regions very attractive for foreign investors. The economy’s strength lies in its great diversification, as it does not focus only on export or on a particular industry. It offers a wide range of services and products, from financial services and machinery to furniture and food. By increasing tax compliance and closing loopholes in the tax system, Poland has also been able to increase taxes without increasing tax levels.
Since September 2018, Poland is part of the FTSE Developed All Cap Index, becoming the first country in Europe to make such a step and the first country in the world to be awarded such an upgrade in almost a decade. Reclassification is influencing the continuous improvements in Poland’s capital markets infrastructure and economic progress. Today the Polish economy is one of the most dynamic in the world, ranking 27th out of 190 countries in 2018’s World Bank Ease of Doing Business index. The country also ranks highly in the Human Development Index and maintains a high-income economy, very high standards of living, quality of life, safety, education, and economic freedom. Poland provides free university education, social security, and a universal health care system. A 3.8 percent GDP growth is expected for 2020.