NEWS

12^nd May 2006 - Poland an attractive investment destination, according to report

According to a new report published by consulting firm AT Kearney, Poland ranked 5th among countries in its Foreign Direct Investment Confidence Index, jumping seven places from 12th last year.

Consulting Group ranks Poland as 5th most attractive investment destination According to a new report published by consulting firm AT Kearney, Poland ranked 5th among countries in its Foreign Direct Investment Confidence Index, jumping seven places from 12th last year. Only China, India, the USA and the U.K. are ahead, ranked one to four respectively. Other Central European countries ranked much lower, with Hungary and Czech Republic ranked 11th and 12th. The report was prepared using surveys conducted among managers of companies which generate 70% of world Foreign Direct Investment (FDI). This is the highest increase since 2000. AT Kearney foresees that upcoming months will bring increased inflow of FDI to Poland. The top five countries on the list receive 35% of all global FDI inflows. American investors rank Poland their 7th most attractive FDI location, while European managers placed it 3rd. The report states that 25% of investors are more optimistic about the Polish market. One in ten global investors indicated that they will make first-time investments in Poland. This enthusiasm may originate from the adoption of the EU laws. EU Structural Funds aimed at improving infrastructure also have a large impact on these attitudes. AT Kearney research shows that in 2004 nearly 60% of FDI in Poland was in the form of greenfield investments. Even more interesting, nearly 10% of greenfield investments in the EU were in Poland. Based on the AT Kearney report, it can be predicted that Poland will see a huge inflow of communication investments. Global communications investors ranked Poland first in the world in terms of attractiveness for FDI. This is a result of low penetration in relation to a large population. The report stresses the growing potential of Poland as an attractive location for outsourcing, particularly service centres such as financial or call centres. What is very noteworthy, European investors placed Poland on a high, fourth position globally in terms of attractiveness for research and development (R&D) investments.

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