PIE: More equity than debt financing in FDI investments

In 2023, Poland attracted around PLN 133 billion in Foreign Direct Investments (FDI), equivalent to 3.9% of GDP, according to estimates by the Polish Economic Institute (PIE). PIE experts stress a continued capital shortage in the Polish economy, while at the same time a positive shift in the investment structure.

"Currently, equity investments account for 80% of foreign investments flowing into Poland, of which reinvested profits make up 56%, and entirely new equity investments constitute 25%. The share of both categories is about 15-16% higher than the historical average. Meanwhile, the share of debt instruments is significantly smaller than in previous years. Such a mix not only helps improve the long-term potential of the economy but also contributes to maintaining a stably strong exchange rate of the Polish złoty," explain the experts.

While equity investments play a larger role, the challenge remains the capital shortage in Poland.

Source: 300gospodarka.pl