2012 Reports

Inward FDI in Poland and its policy context, 2012

Zimny, Zbigniew

Good economic performance, one of the best in European Union (EU) economies during the global crisis of 2008-2009 and the subsequent economic slowdown in Europe in 2009 and 2010, did not save Poland from experiencing a decline in foreign direct investment (FDI) inflows during 2008-2010. Inflows in 2010, at US$ 9 billion, were only 38% of their peak value of 2007. In 2011, inflows started to recover, reaching US$ 14.3 billion. In 2010, the FDI stock in Poland surpassed US$ 200 billion for the first time and was by far the largest among the stocks held in the new member economies of the EU from Central and Eastern Europe. Economic prospects of Poland are favorable, but the ongoing debt crisis and the continuing economic slowdown in Western Europe, the dominant home region for multinational enterprises (MNEs) investing in Poland, put a question mark on the strength of any further recovery of FDI inflows.