Transcript Document

Trade and Investment Promotion Section
Embassy of the Republic of Poland in Dublin
October 15th, 2012
Dublin Chamber of Commerce
Poland’s
Economic Performance
Investment Climate in Poland
Polish-Irish Economic Cooperation
Poland – Key Facts
Area: 312 thousand km2
6th in European Union,
68th in the world
Population: 38.3 mln
6th in European Union,
34th in the world
Currency: Polish Zloty (EUR 1 ≈ PLN 4.10)
(USD 1 ≈ PLN 3.16)
GDP total: EUR 370.5 bln (USD 488.0 bln)
GDP per capita PPP: EUR 16 000 (USD 21 000)
(purchasing power parity)
GDP growth: 4.3%
Membership: OECD, WTO, NATO, EU, Schengen Zone
Competitive Advantages
Location & economic fundamentals
 strategic location in continental Europe
 part of trans-European transportation corridor
 third fastest growing EU country in 2010
 38 million consumers
1000 km radius
250 mln people
Labor force
 young, well-educated work force
 ca 11% of university students in the EU
 455 universities & high education schools
 language proficiency
 increasing labour productivity
Investment incentives
 tax exemptions in 14 Special Economic Zones
 grants co-financed from the EU (EUR 90 bn)
2000 km radius
550 mn people
Sustainable and balanced
economic growth
Poland joins
the EU
Leader of GDP
growth in EU
EU
Presidency
Schengen
Entry into
the NATO
WTO
OECD
Data: Poland’s CSO
Poland’s GDP in mln PLN
Poland’s GDP growth
(% change, yoy)
8.0
Data: Poland’s CSO
7.0
7.1
7.0
6.0
6.8
6.2
6.2
5.0
5.1
5.3
5.0
4.5
4.0
4.3
4.3
3.9
3.7
3.8
3.6
3.0
2.0
5.1
2.6
1.0
1.2
1.7
1.4
0.0
1992
1993
1994
1995
1996
1997
1998
1999
In 2011 GDP growth amounted to
4.3%. In the 1st half of 2012 GDP
growth amounted to 2.9%.
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
The biggest growth contribution
was made by domestic demand,
investment and exports.
30,0
Consumer Price Index in Poland
annual average
XII/XII
27,8 19,9
25,0
14,9 11,8 7,3 10,1 5,5
21,6
20,0
1,9 0,8
3,5
1,0
2,1
2,5
4,2
3,5 2,6
4,3
18,5
15,0
13,2
10,0
8,6
9,8
8,5
6,3
4,4
5,0
0,8
1,7
4,0
0,7
3,3
3,5
4,6
3,1
1,4
0,0
1995 1996
1997 1998
1999 2000
2001 2002
2003
2004 2005
2006 2007
2008 2009
2010 2011
In the period of January-August 2012 the annual average
consumer price index increased by 4.0%
At the same time the average employment (yoy) increased by 0,5%
Jul-11
Apr-11
Jan-11
Oct- 10
Jul-10
Apr-10
Jan-10
Oct- 09
Jul-09
Apr-09
Jan-09
Oct-08
Jul-08
Apr-08
Jan-08
Oct-07
Jul-07
Apr-07
Jan-07
Oct-06
Jul-06
Apr-06
Jan-06
Oct-05
Jul-05
Apr-05
Jan-05
Oct-04
Jul-04
Apr-04
Jan-04
%
Labour market – unemployment
rate in Poland
22
20
18
16
14
12
10
8
The unemployment rate at the end of August 2012 amounted to 12.4%;
Unemployment rate
08/2012
12.4%
Warmińsko-Mazurskie
19.2%
20
Podlaskie
13.8%
Mazowieckie
10.0%
Łódzkie
13.1%
Dolnośląskie
12,5%
Opolskie
13.2%
15% >
Lubelskie
13,0%
Świętokrzyskie
14.8%
Śląskie
10.2%
Małopolskie
10.5%
11-15
10% <
as of 30 of June 2012
Source: Central Statistical Office, 2012
Podkarpackie
15.0%
20
12
20
11
20
10
20
09
20
08
20
07
20
06
Wielkopolskie
9.1%
0
20
02
Lubuskie
15.1%
10
20
05
Kujawsko-Pomorskie
16.7%
20
04
Zachodnio-Pomorskie
16.7%
20
03
Pomorskie
12.1%
Students and graduates
 20 mln people aged 35 and less
 455 higher education institutions
 almost 2 mln students
• 18 universities
 more than 430 thous. graduates every year
• 22 technical universities
 more than 90% of students know foreign
languages
• 95 academies of economics
growing number of science students
Young engineers in Poland*
City
Main academic centers
TRI-CITY
OLSZTYN
SZCZECIN
BIALYSTOK
BYDGOSZCZ/TORUN
WARSZAWA
POZNAN
ZIELONA
GORA
360>
LODZ
LUBLIN
WROCLAW
OPOLE
No. of students
(thousands)
KIELCE
201 >
KRAKOW
KATOWICE
RZESZOW
151 – 200
101 – 150
51 – 100
50 <
Source: Central Statistical Office
Students
Graduates
Warszawa
31 580
4 776
Wroclaw
25 870
4 205
Katowice
5 077
1 073
Krakow
31 194
4 905
Poznan
17 652
3 589
Tricity
14 693
2 667
Kielce
5 630
1 278
Lodz
18 920
3 556
Lublin
9 331
1 879
Rzeszow
8 135
1 639
*Disciplines: ICT; Mathematics and statistics; Engineering
and technical; Physics. Source: CSO, data as of 2010
Tax rates
• Corporate Income Tax (CIT) rate
19%
• Personal Income Tax (PIT) rate
18% and 32%
• Value added tax (VAT)
basic rate: 23%
reduced rates: 8%, 5%
export rate: 0%
• Social Security Tax paid by employer
between 19.48% and 22.14%
Polish exports
EUR bln
160
140
Data: Poland’s CSO
140
130
120
120
100
110
80
100
60
90
40
80
20
70
0
34.3
40.3
43.3
47.4
59.6
71.4
87.9
101.8
116.2
98.2
120.4
136.7
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
60
exports in value
In 2011 Poland
exports was by
14% higher
than a year
before
In the commodity structure of Polish exports the
main groups of products were:
• products of the electromechanical industry
(20.4%)
• products of chemical industry (6.9%)
• metallurgical products (5.9%)
• agricultural and food products (5.6%)
Polish imports
180
160
Data: Poland’s CSO
140
EUR bln
120
100
80
60
40
20
0
53.0
56.1
58.2
60.2
71.3
81.2
100.8
120.4
142.5
107.5
134.2
152.6
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
imports in value
In 2011 Poland
imports increased
by 14% comparing
to the previous
year.
In the commodity structure of Poland
imports the main groups of products were:
• Products of the electromechanical
industry (17.5%);
• products of chemical industry (8.8%);
• mineral products (6.9%).
Foreign Direct Investment
Inflow of FDI’s in 2011 amounted to nearly EUR 10 bln
Companies from Germany, the Netherlands and
Luxembourg are the biggest foreign investors in Poland
Forms of regional aid in Poland
TAX EXEMPTIONS
 CIT exemption in Special Economic Zone
 Real estate tax exemption
CASH GRANTS
 Government grants
 Cash grants available through EU funds
(EUR 67 billion)
All above presented instruments can be combined together (with some
exceptions) however the total amount of regional aid cannot exceed the
maximum aid ceiling
Special Economic Zones
Definition
• a special economic zone (SEZ) is a designated
area in which manufacturing or distribution
activities can be conducted on preferential
terms
• 14 SEZ in Poland, with several subzones
The purpose
• support regional development
Total area
• up to 20 000 hectares
Time of operation
• 31st December 2020
Permits to conduct activities in SEZ
• issued by the authorities of each SEZ
•
•
•
Benefits from obtaining a permit to conduct activities in SEZ :
eligibility for income tax exemption
plot of land prepared for an investment project
free assistance in dealing with formalities relating to the investment project
Exemption from real estate tax
 a form of regional state aid
 available in communes which
adopted resolutions concerning the
possibility of exemption from real
estate tax
 maximum tax limits in 2012 are:
21.94 PLN/sq.m. for buildings, 0.84
PLN/sq.m. for land and 2% of
construction value. In each commune
tax rates are set by local authorities
 the exemption usually depends on
the amount of new workplaces created
Example:
Grudziądz, Kujawsko - Pomorskie province
Investment in the Pomorska SEZ by
entrepreneur other than small or mediumsized
Jobs created
Full exemption
Investment of at least EUR 100 000
50
3 years
70
5 years
90
7 years
For every EUR 500 000 – additional 6
month of exemption no more than
1 year
Government grants
Programme of support of investments of considerable importance
for Polish economy
Production
Modern services
 automotive
 ICT
 electronics
 SSC
 aviation
 BPO
 biotechnology
 „big investment” in other sectors
R&D activity
Purpose of support
 development of innovativeness and competitiveness of Polish economy
Result of support
 50 programmes of total amount 13,5 bn PLN (since 2004r.)
 33,7 thous. of new jobs
Source: PAIiIZ, Ministry of Economy
Poland’s economy - forecasts
2012
2013
GDP growth
2.5%
2.2%
Inflation
2.8%
2.7%
Public deficit
3.5%
3.0%
Public debt
55%
53.7%
Economic cooperation between
Poland and Ireland
Polish exports to Ireland
600
500
EUR mn
400
300
200
100
0
97.0
117.0
132.0
132.0
176.0
233.0
289.0
379.0
532.0
371.0
449.7
397.4
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
20 in value
exports
Main commodities in Polish
exports to Ireland
in 2011
Products of the electromechanical industry
33.3%
Agricultural and food products
22.9%
Mineral products
14.3%
Products of chemical industry
9.5%
Metallurgical products
4.7%
Paper and wooden products
4.6%
Miscellaneous
4.6%
21
Polish imports from Ireland
1200
100
95
1000
90
85
EUR mn
800
80
600
75
70
400
65
60
200
55
0
308.0
326.0
341.0
323.0
372.0
450.0
570.0
664.0
956.0
712.0
840.2
777.3
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
22
imports in value
50
Main commodities in Polish
imports from Ireland
in 2011
Products of chemical industry
44.5%
Products of the electromechanical industry
39.1%
Agricultural and food products
11.1%
23
Polska Power!
The brand of the Polish Economy
Perspective fields of cooperation
Furniture industry
Amber and jewelery
IT
Boating industry (yachts)
Pharmaceutical
and biotechnological industry
Perspective fields of cooperation cont…
Medical equipment
Doors and windows
Construction sector
Protection and preservation
of historical monuments
Cosmetics industry
Perspective fields of cooperation cont…
Mining equipment
Clothing, accessories and leather goods
industry
Medical services
Defence industry
Food and drinks
Why Poland? Summary
Strategic location
Economic and political stability
Availability of skilled human resources
Effective incentives system including EU-Funds
Trade and Investment Promotion Section
Embassy of Poland
www.dublin.trade.gov.pl
[email protected]