POLISH INFORMATION

AND FOREIGN INVESTMENT AGENCY

World Investment Conference 2016, Istanbul

Krzysztof Senger, Executive V-ce President

Wojciech Fedko, Executive V-ce President

Diagnosis

Responsible Development Plan

Polish Trade and Investment Agency

Poland - Key Facts

Source: IMF, World Economic Outlook, http://www.tradingeconomics.com/poland/rating, 2016

6th largest country in the EU: area, population and economy

GDP: USD 1003 billion (PPP, 2015) – IMF

GDP per capita: USD 26,403 (PPP, 2015) – IMF

GDP growth (at market prices) 2008-2015: Poland 40% vs the EU: 12,5%

largest EU funds beneficiary: ~100 bn EUR in years 2014-2020

low public debt: 51.0% of the GDP v. the EU average 87.8%

FDI stock: 208.6 bn USD as of the end of 2014

membership: EU, NATO, OECD, WTO, Schengen Zone, AIIB

Main pillars of Poland’s economic performance

1

Public debt at safe level of 50% of GDP

Fiscal deficit below 3%

Well capitalized and efficient banking sector

Internal demand

2

38.5 million population with rising middle class and increasing

purchasing power parity

Poland is set to invest EUR 82.5 bn between 2014-2020 from EU,

which makes Poland the single largest recipient of the EU Funds

The investment are aimed at inclusive and sustainable growth,

improving innovativeness and improving communication

infrastructure

EU Funds inflow

3

Productivity improvements

25% productivity improvement between 2005-2015

Stronger real labour productivity than wages increase

Purchasing Managers’ Index (PMI) in manfacturing continued in

expansionary territory

4

FDI inflows

Most attractive FDI destination in CEE

Strong manufacturing base and booming BPO/SSC sector

EUR 171.6 bn of FDI stock at the end of 2014

5

EUR 3.5 bn foreign trade surplus with 7% annual export

dynamics in 2015

European leader in sectors such as: automotive parts and

components, processed food, furniture, yachts.

Exports

6Macroeconomic stability

5

Poland’s place in international rankings

5th most attractive FDI destination in Europe

2nd place in Europe in terms of jobs created

6th place in terms of number of investement projects

(EY’s 2016 European Attractiveness Survey)

36th globally in Global Competitiveness Index 2016 (World

Economic Forum)

25th place globally, Ease of Doing Business

(World Bank, Doing Business 2016 report )

6

EY’s European Attractiveness Survey 2016

Source: EY, European Attractiveness Survey, 2016.

0

200

400

600

800

1,000

1,200

UK

Ger

man

y

Fran

ce

Spai

n

Net

her

lan

ds

Be

lgiu

m

Po

lan

d

Ru

ssia

Turk

ey

Ire

lan

d

Number of FDI projects

2014

2015

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

UK

Po

lan

d

Ger

man

y

Ru

ssia

Fran

ce

Ro

man

ia

Hu

nga

ry

Ire

lan

d

Serb

ia

Slo

vaki

a

FDI jobs created

2014

2015

0%

20%

40%

60%

80%

Germany UK France Netherlands Poland

TOP 5 countries for FDI in Europe

Poland’s comparative advantages

Quality/cost ratio of labour

Improving infrastructure

Social and economic stability

Wrocław

Services and Manufacturing Hubs in Poland I

HOUSEHOLD APPLIANCES

ELECTRONICS

AUTOMOTIVE

Services and Manufacturing Hubs in Poland II

AEROSPACE

Wrocław

BUSINESS SERVICES SECTOR

R & D

-500

-400

-300

-200

-100

0

100

200190

-469

-279

Poland’s FDI outflows lower than FDIs

inflows

0

5

10

15

20

25

30

Netherlands Germany Luxembourg France Spain

TOP 5 FDI source countries in Poland (FDI stock, 2014, EUR bn)

0

1

2

3

4

5

6

7

8

Cyprus Luxembourg Switzerland Netherlands CzechRepublic

TOP 5 FDI destination countries of Poland (FDI stock, 2014, EUR bn)

Poland’s net international investment position

(2015, EUR bn)

Source: NBP, Central Bank of Poland

Foreign Direct Investment – key figures

Diagnosis

Responsible Development Plan

Polish Trade and Investment Agency

More effective state

Solid public finance as a foundation for the

development

Modern infrastructure for the benefit of the

economic needs and quality of life

Increasing of Polish capital as a key to success

The best investment is investment in people

Responsible development is the

inclusive and not exclusive

development

Responsible development is the development

sustainable in territorial terms

Responsible development

is the development with a view to

future generations

Responsible Development Plan -increasing the responsibility of the state institutions in the economy

Sustainable economic growth based on innovative companies

Strong enterprises as a foundation of the economy

Main objective of the Responsible Development Plan

Creating the conditions for the growth of income of the Poles with the increase in the social, economic and territorial cohesion

Expected results

20-22%

Increase in gross disposable income of households percapita according to PPP in relation to the EU average

Further convergence of GDP per capitaof Poland and EU-28

Reduced percentge of people at risk of poverty or social exclusion

Foreign expansion

maintaining high export growth rate, while improving the level of its innovation and stimulating Polish FDI.

Intensifying the export and investment activity will allow Polish companies to achieve: higher and diversified revenue, higher efficiency and profitability and better technological level, which will translate into the improvement in their competitiveness in foreign markets

Expected effects

Average annual growth rate of the export value of goods Data source: GUS

Share of the export of high-tech products in the total export Data source: Eurostat

Increase in receivables due to Polish foreign direct investment (FDI)

Data source: NBP, unit of measure: billion EUR

Diagnosis

Responsible Development Plan

Polish Trade and Investment Agency

Optimal operating model

Polish Development Fund

Integration of various institutionsProject assumptions

Goal

Intended results

Market conditions

High potential

Polish development bank of extensive

investment potential

Achieving adequate scale for carrying out

large investment projects

Capital mobilized on international markets

Taking advantage of synergy between

various state owned enterprises i.a. PZU,

PKO BP,

• Export supportunit within PFR

• Financial offer

• Strong brandPoland

• Economicdiplomacyreform

FOREIGNEXPANSION

Foreign expansion – one of 5 main pillars of

Responsible Development Plan

Export and outwards

foreign directinvestment

support

Creation of Polish Trade and Investment Agency– integration and expansion of available tools

Reform of current Trade Promotion system–new network of overseas Trade Offices

Moden financial and advisory services –integrated financial tools scheme under Polish Development Fund

Completely new, comprehensive system of export and outwards investment support system, based on new institutions and new financial and advisory instruments

Modern, efficiency-driven network of institutions helping Polish companies in theiroperations abroad

New institutional framework

Targets setting, supervisionand control, bilateral policy in international economicrelations

Instytucje centralne

Dostęp do wiedzy i informacji

Placówki zagraniczn

e

Instrumenty wsparcia

Polish Development

Fund

KUKE BGKPolish Trade &

Investment Agency

Trade Officesabroad

Foreign Expansion Fund

Targets and strategy fulfilment, support instruments adjustedto needs and requirements of the businesses

Competence centers and executiveorganisations ensuring financialand advisory instruments

Overseas trade offices, supportingenterprises in the target markets

Ministry of Economic

Development

Polish economy promotion &

export support

Pillars of Polish Trade & Invest Agency

Comprehensive advisory, promotional and informational services in new Agency

Supporting foreignexpansion of

Polish enterprises

High quality FDIinflow into Poland

Estimated budget of around EUR 25 million in 2017 r. and EUR 50 million in 2018, as compared to EUR 3 million currently

Key markets for Poland are located in Europe Intensifying Poland’s presence on prospective markets: Asian, African and North-American Promotional programms implementedd on 5 markets: India, Vietnam, Iran, Algieria, Mexico

Supporting new directions in foreign expansion of Polish companies

new

remain

to be closed

Economicdiplomacyoffices

Heavy industry, furniture

Mineralresources, machinery

Food-processingchemical and wood-processing industries

Teheran (Iran)

First Trade Offices to be opened

San Francisco (USA)Nairobi (Kenya) Singapore Ho Chi Minh (Vietnam)

• state budget resources, resources from state special purpose funds and implementing agencies

• budget resources of local government units

• funds managed within the framework of the Polish Development Fund

• resources of other entities and organisational and legal forms of the public finance sector

National public resources

• European Structural & Investment Funds resources from the EU budget allocated for the programming period 2014-2020 (PA, operational programmes, RDP)

• EU programmes and initiatives other than the ESIF (e.g. CEF, Horizon 2020, COSME, LIFE, Erasmus +, EaSI)

• EEA and NFM financial mechanisms

• foreign credit, guarantee and warranty programmes (Juncker Plan, EIB, EIF, EBRD, WB and AIIB programmes)

• banking sector resources (credits granted under the system of warranties and guarantees)

• investment potential of enterprises

• investment potential of state-owned companies

Financing Responsible Development Plan

Foreignsources

Private resources

Thank you for your attention

00-585 Warszawa, ul. Bagatela 12

tel. (+48 22) 334 98 00, fax (+48 22) 334 99 99

e-mail: invest@paiz.gov.pl