Polish Economy Growth
August 26, 2019Polish economy is growing. This is a fact. Poland has enjoyed more than 30 years of uninterrupted growth. Recently it has been upgraded to developed market status by FTSE Russell. For this and many more reasons many people are considering investing in Polish economy. Poland combines the market stability and infrastructure of a typical european market with a high ROI of an emerging market. There is still a lot of space for growth here.
The fundamentals
Poland has very strong fundamentals for future growth. It is currently the 6th biggest economy in Europe. Poland has a population of 38 million and currently combines it with a steady flow of immigration from Ukraine and other Eastern European countries. This means that the consumer base is going to be growing steadily for the next 5 years. As of today the GDP of Poland is around 524 billion Euro. The best thing about Polish economy’s growth is that it is organic. It does not rely on single sector. Long Term this has proven to be usual a good mitigating factor for any possible bubbles. Poland boasts growth both in services and industrial production. This allows it to avoid any unpleasant property market bubbles like in Spain or Greece. As a result of this since 1989 Poland has increased its GDP per capita almost eightfold to $15,431 (€13,558).
How to invest
You can consider buying Polish stock which some are listed on major Stock Exchanges of the world. Or you can think about a direct investment. Both can yield a different return and require different preparations. In terms of direct investment there is plenty of opportunities in service sector. If you can come up with a innovative solution or implement something that already works in your country that might be just a thing that would work. Poland is a specific market that requires some cultural adjustments to products but in general the business environment is similar to other EU countries.
What to expect?
Future looks bright. All the fundamental factors seem to align very well for Poland. Additionally the global geopolitics suggest that USA will try to increase their economic and military engagement as part of their long term strategy. On the other side the Chinese maga-infrastructure project of the new Silk Road will eventually have to go through Poland. Chinese engagement will have to be connected with investments.