Foreign investors look to Poland

Pandemic disruptions in supply chains and a drastic increase in international transportation costs have led to strong interest among companies in outsourcing processes and services to geographically proximate countries instead of distant Asia. The war in Ukraine has only intensified this trend. That's why, right now, 53 percent of investors want to bring supply chains closer to where the product or service is sold, and 43 percent expect products and services to return to the domestic market, according to a survey by consulting firm EY. This trend could benefit Europe, including Poland, which continues to attract the most foreign direct investment in the CEE region.

"Events such as the pandemic and the Russian aggression against Ukraine are causing some caution among foreign investors. On the other hand, they are a good opportunity to review their investment plans. We noticed some time ago that supply chains are shortening and some production is moving from Asia to European countries, including Poland," Zofia Kilian of the Polish Investment and Trade Agency estimates.

According to a report by consulting firm EY, foreign direct investment (FDI) in Europe fell by 13 percent in 2020, a pandemic that caused investors to hold back on their decisions. However, they already announced nearly 5,900 planned FDIs in Europe last year, a 5 percent increase. Analysts point out that investors are still eager to choose the Old Continent, even though the post-pandemic rebound in the economy has proved slower than expected.

(Newseria)