Innovative property investments
Investment property in Poland
Buying Guide
Economic Overview
In transition
Poland has stuck to a policy of economic liberalization throughout the 1990s and is probably the most successful of the so-called transition economies, yet it still has economic problems, not least of which is its unemployment rate (18.2% in 2005), which was the highest in the EU until the 2007 accessions of Bulgaria and Romania.
An estimated 17% of the country’s population is living below the poverty line.
Growing healthily
Poland’s economy is growing at a healthy rate however - in 2005 its GDP was up by 3.4%, and the country is experiencing high levels of foreign direct investment.
However, there are worries that its competitiveness could be threatened by the zloty's appreciation.
Benefiting from EU membership
Having joined the EU in May 2004, surging exports to the EU contributed to Poland’s strong growth that year, and it benefited from nearly 23.2 billion USD in EU funds in 2006.
Benefiting from foreign direct investment
Western companies are investing heavily in Poland, opening offices and factories there, and the influx of overseas workers combined with the rising financial status of Poles, including the creation of a Polish middle class employed by the new economy, are major factors in driving a vibrant economy and property market.
Martin Oxley, chief executive officer of the British - Polish Chamber of Commerce (BPCC), said of the levels of FDI in Poland:
“UK investors in Poland have proven the country’s attractiveness by establishing market leadership in several sectors, including retail (Tesco), pharmaceutical (GlaxoSmithKline), glass (Pilkington) and pensions/life assurance (Commercial Union) to name but a few. These British success stories prove that the opportunities for building strong, sustainable businesses are plentiful.”
Current market
The GDP per capita in Poland was 13,100 USD in 2005, roughly the same as the GDP for each of the three Baltic states, Lithuania, Latvia and Estonia.
Broken down into sectors, the country’s GDP is composed of 5% agriculture, 31.1% industry and manufacturing, and 64% service industries.
Key facts
- Undergoing economic liberalization since the 1990s
- The economy is growing at a healthy rate - in 2005 its GDP was up 3.4% - due to high levels of foreign direct investment, surging exports to the EU and the receipt of EU funding
- The GDP per capita in Poland was 13,100 USD in 2005, on a par with those of Lithuania, Latvia and Estonia
- Service industries contribute 64% to GDP, whilst industry and manufacturing 31.1% and agriculture 5%
Downloadable Reports and Documents
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