The sixth-largest economy in the European Union and traditionally one of the fastest-growing is Poland, a country with a high standard of living. The nation’s gross domestic product increased at a rate of about 3% per year following economic deregulation in the 1990s until the European National Financial Meltdown. At that period, Poland was the only nation in the European Union to maintain GDP growth.
If you are considering investing in the country, it is worthwhile to research the country’s economic situation. Poland’s GDP is heavily dependent on Germany; it exports $54.5 billion to that country. The nation’s judicial system is still growing, and its politics frequently take a conservative turn.
Increased investment, GDP growth, more exports, and an expanding economy are all signs of potential investment prospects in Poland.
Prospects of the polish economy
The Polish economy is on a steady trajectory of growth and development. With a population of 38 million people and a GDP of over $1 trillion, Poland is one of the most important economies in the European Union. In recent years, the Polish economy has seen a steady increase in GDP, with a 4.3% growth rate in 2020. This growth has been driven by strong exports, improvements in the labor market, and a growing consumer base.
Looking ahead, the prospects for the Polish economy remain bright. The government has implemented several reforms to improve the business environment, including reducing bureaucracy and introducing tax incentives. The country is also investing heavily in infrastructure and digitalization, which will help to create new jobs and attract foreign investment. Additionally, the Polish government is actively encouraging foreign direct investment, which will help to further diversify the economy and create new opportunities for businesses. The following are the top areas to invest in Poland.
Real estate investment
The real estate market in Poland is quite robust. The demand for housing is strong, and the prices are competitive. This is especially true in larger cities, such as Warsaw, Krakow, and Poznan. Real estate prices in the nation have been steadily increasing over the past few years, making it an attractive option for investors. Additionally, there are many financing options available for investors, including mortgages.
If a private facility is leased, the estimated yearly profit on investment in Poland is 4-5%. The industrial property generates a yearly yield of 8–10% on average. It is common knowledge that finding a suitable corporate property in one of the major Polish cities is challenging, but not impossible, given the issue of real estate’s flexibility.
ETF investments
Exchange-traded funds, which provide quick diversity in listed security, are the simplest way to invest in Poland. The most well-liked choice for foreign investors looking for participation in Poland’s economy is the iShares MSCI, which has about $340 million in funds. ADRs and NYSE: PLND are additional investment possibilities in the country.
ADRs give traders access to specific Polish companies through a stock market asset, but they need to be warned that numerous of these ADRs are inactive and may carry a lot more risk. Asseco Poland and Globe Trade Center S.A. are a few well-known Polish ADRs.
Poland’s Investment Advantages
Poland’s authorities have been attempting to reform various governmental sectors and liberalize the economy of the nation. Recent years have seen a tightening of the job market, an increase in the median income, and a decline in the poverty rate. Furthermore, Poland is eligible to survive currency impacts in the global market thanks to its currency.
Poland Investment Concerns
Germany, which attributed to over 27% of Poland’s foreign exchange earnings and 21% of its purchases in 2019, is a major economic determinant. Any economic slump in Germany could have a detrimental effect on Poland.
Furthermore, Poland’s governance has been a little more unstable since the Law and Order movement took office in 2015. Many people in the European Union are concerned about the party after it took the power from the judicial branch and public television.
