Polish firms' lack of investments may cause issues

"Enterprises are returning to a path of rapid growth, but their investments are insufficient in relation to increasing demand. Companies might lose market share if imports satisfy demand," reads a report from the Polish Confederation of Private Employers (PKPP) Lewiatan. Over the first three quarters of 2006, corporate investments increased by 24%, while revenues and costs went up by 14% and 13.3%, respectively. "This means that profitability is improving. After nine months, net financial result of enterprises amounted to zl.50.7 billion, which is almost as much as for the whole of 2005," said Malgorzata Krzysztoszek of PKPP Lewiatan. At the same time she stressed that companies might soon be covering investment needs with their own capital, while their capacity is likely to soon reach its maximum. Investments by Polish enterprises account for 17% of the GDP, while the EU average stands at 20.6%. (Puls Biznesu, p. 8) M.M.