POLISH INFORMATION AND FOREIGN INVESTMENT AGENCY

Foreign investment climate in Poland

Dariusz Duda Project Manager Foreign Investment Department Warsaw, January 2016 1

Strategic location in the heart of Europe

Key Facts Official name

Republic of Poland

Official language

Polish

Capital

Warsaw

Area

312 700 sq km (6th in EU)

Population

38.5 mn (6th in EU)

Currency

Polish Złoty 100 CNY ~62.2 PLN 1 USD ~4.09 PLN 1 EUR ~4.45 PLN

Tax rates

CIT 19% PIT 18%, 32% VAT 23%

Time zone

UTC +1 (Winter) UTC +2 (Summer)

Source: National Bank of Poland, January 2016

European growth champion

Source: GDP annual growth rates, Eurostat, June 2015

Future looks just as bright

Real GDP growth forecasts (%) 2015 (f)

2016 (f)

2017 (f)

Romania

3.5

4.1

3.6

Poland

3.5

3.5

3.5

Slovakia

3.2

2.9

3.3

Czech Republic

4.3

2.2

2.7

Hungary

2.9

2.2

2.5

Bulgaria

1.7

1.5

2.0

EU28

1.9

2.0

2.1

Eurozone

1.6

1.8.

1.9

Germany

1.7

1.9

1.9

Source: Eurostat, European Commission, November 2015

Vast pool of young labour force

National unemployment rate: 9.6%

Registered unemployed by regions

25 20

Pomorskie 76 300

Zachodniopomorskie 76 400

15 10

Warminsko-Mazurskie 80 600 Podlaskie 53 200

Kujawsko-Pomorskie 103 000

5 0 01/01/2004

01/01/2008

Lubuskie 37 900

01/01/2012

Lodzkie 106 900

Population by age classes in CEE countries Dolnoslaskie 97 000

25 25-49

20

15-24

> 150 000

15

0-14

110 000 – 150 000

10 5

90 000 – 110 000 40 000 – 90 000 < 40 000

-

Source: Central Statistical Office, November 2015

Mazowieckie 216 300

Wielkopolskie 91 800

Opolskie 33 800

Slaskie 146 400

Lubelskie 100 500 Swietokrzyskie 63 000

Malopolskie 115 600

Podkarpackie 117 800

Productivity growth > wages growth

Gross wages (EUR)

Pomorskie 943

Zachodniopomorskie 836

Productivity and wages growth

120

Warminsko-Mazurskie 777 Podlaskie 790

Kujawsko-Pomorskie 814 Lubuskie 838

80

Mazowieckie 1 078

Wielkopolskie 902

60

Lodzkie 954 Dolnoslaskie 1 141 Opolskie 886

≥ 1 100 1 000 – 1 099 900 – 999

100

Slaskie 1 114

Lubelskie 838 Swietokrzyskie 850

Malopolskie 921

Podkarpackie 806

800 – 899

40

20

0 2002

2003

2004 2005

2006

2007

Annual productivity in PLN th.

< 800

Minimum gross wage: 1 850 PLN (~416 EUR)

Source: Central Statistical Office, December 2015; Eurostat, 2013

2008

2009

2010

2011

2012 2013

Annual average wage in PLN th.

Employer-friendly social security

19.21 22.41

100

Employee’s social security contribution

22.71

100

17.5

Poland

Hungary

35.2

34

27

100

11

Czech Republic

100

Employer’s social security contribution

Gross wage

13,4

Slovakia

Average gross wage comparison does not reflect total labour cost – social security contributions make a significant difference

Source: OECD, CzechInvest, HITA, Sario, 2016

Total cost for employer

Academic hub in each major city Gdansk Olsztyn

24 mn people aged 49 and less (64%)

Szczecin

Almost 1.47 m students (2014/2015) More than 424 000 graduates (2014)

Bialystok

Bydgoszcz/Torun

Warsaw Zielona Gora

Poznan Lodz

Over 46 thousand foreign students from 149 countries (3.1% of all students)

Lublin

No. of students (thousands)

Wroclaw

201 > Opole Katowice

Kielce

Krakow

More than 90% of students speak foreign languages

151 – 200 101 – 150

Rzeszow

51 – 100 50