katalog_POLSKA_doPP_Layout 1-1.jpg POLAND YOUR BUSINESS PARTNER Poland Poland is the 6th EU country in terms of population. Poland – basic data Data: 07/2018 Area: 312,679 square kilometres Population: 38,146,000 Birth rate per 1,000 inhabitants: 0.9 Currency: PLN Language: Polish Capital: Warsaw katalog_POLSKA_doPP_Layout 1-2.jpg Macroeconomic data: GDP (2017) EUR 467.2 bn GDP annual growth rate (6/2018) 5.1% Unemployment rate (9/2018) 3.5% Inflation rate (9/2018) 1.9% part2 Regions of Poland Poland is divided into 16 provinces called voivodeships. Export Poland is the world’s 24th exporter (2017) with a 1.26% share in global export. This figure continues to grow. One fourth of Polish exports are machines, mechanical and electric devices together with their parts and accessories. export import-1.jpg With export growing at an annual rate of 6.3% in 2013-2017, Poland ranks 5th among the 50 fastest world exporters, following Vietnam, Philippines, Ireland, and the Czech Republic. In 2017 the rate of export growth reached 11.8%, and continued at the level of 7,7% in 2018. Germany – 28.2% of share, EUR 62,2 billion Great Britain – 6,2%, EUR 13.7 billion Czech Republic – – 6.4%, EUR 14.1 billion France – 5.5%, EUR 12.2 billion Italy – 4.6%, EUR 10.2 billion Netherlands – 4.5%, EUR 10.0 billion Russia – 3.1%, EUR 6.8 billion Sweden– 2.8%, EUR 6.1 billion Spain – 2.7%, EUR 5.6 billion USA – 2.8%, EUR 6.2 billion Key export markets in 2018: Technologically advanced products accounted for 8.4% of Poland’s total export in 2018. Poland’s share of world export 2013-2017 1.26% 1.08% 2017 2013 export import-2.jpg Import Most of Polish imports (23%) come from Germany, with China and Russia also ranking among the top three sources of import. Polish trade with other countries is mostly of an intra-industry character. Because of this, the structure of our import resembles the structure of our export. Germany – 22.4%, EUR 50.6 billion China – 11.6%, EUR 26.2 billion Russia – 7.4%, EUR 16.6 bilion Italy – 5.0%, EUR 11,3 bilion France – 3.6%, EUR 8,2 billion Netherlands - 3.6%, EUR 8.1 bilion Czech Republic - 3.4%, EUR 7.7 billion USA – 2.8%, EUR 6.4 billion Key suppliers of goods to Poland in 2018 Source: Statistics Poland (GUS) Strengths of Polish economy Poland is considered one of the five most attractive markets for business in Europe. Our advantages include macroeconomic stability and the ease of establishing multisectoral cooperation. Here are some reasons why Poland is an attractive destination for investment: Ø Ø Ambitious and hardworking people Ø Ø Diversified economy Ø Ø Macroeconomic stability Ø Ø High quality of products and services on offer Ø Ø Infrastructural investments Ø Ø Large internal market and access to EU market Investment data are the best proof of Poland’s attractiveness. At the end of 2017 the value of liabilities arising from direct foreign investments amounted to EUR 199 billion (National Bank of Poland - NBP) According to EY’s European Attractiveness Survey 2017, Poland is the 5th most attractive destination for business in Europe, and the 1st one in the CEE region. Polish Investment Zone  Ø Investment-related tax exemptions available across the country. Ø Focus on well-paid, prospective and stable jobs. Ø Exemptions granted for 10, 12 or 15 years. Ø Bonuses for enterprises that help make regional economies more competitive and innovative, and thus contribute to Poland’s economic development. Source: MPiT Key National Clusters: In Poland is home to over 130 clusters, 16 of which have the Key National Cluster (KKC) status. Key National Clusters (KKCs) are organisations which are pivotal to the national economy and can effectively compete on the international stage. • Klaster Dolina Lotnicza (Aviation Valley Cluster) • Polski Klaster Aluminium (Polish Aluminium Cluster) • Mazowiecki Klaster ICT (Mazovia Cluster ICT) • Klaster Interizon (Interizon Cluster) • Wschodni Klaster Budowlany (Eastern Construction Cluster) • Klaster Obróbki Metali (Metal Processing Cluster) • Zachodniopomorski Klaster Chemiczny „Zielona Chemia” (West Pomeranian Chemical Cluster Green Chemistry) • Klaster LifeScience Kraków (LifeScience Cluster Krakow) • MedSilesie – Śląska Sieć Wyrobów Medycznych (MedSilesie – Silesian Medicinal Product Network) • Śląski Klaster Lotniczy (Silesian Aviation Cluster) • Nutribiomed Klaster (Nutribiomed Cluster) • Wschodni Klaster ICT (Eastern Cluster ICT) • Klaster Gospodarki Odpadowej i Recyklingu (Waste Management and Recycling Cluster) • Klaster Zrównoważona Infrastruktura (Sustainable Infrastructure Cluster) • Klaster Logistyczno-Transportowy Północ – Południe (North-South Logistic and Transport Cluster) • Bydgoski Klaster Przemysłowy (Bydgoszcz Industrial Cluster) Source: MPiT Poland globally Poland is among the EU countries with the lowest unemployment rate. Having dropped to 3.5 % in August 2018, our joblessness rate was the third lowest in the EU following the Czech Republic and Germany. Source: Eurostat Poland globally Poland posting the highest GDP growth in the EU in the first quarter of 2018 (% growth) Poland 1.6 Latvia 1.6 Finland 1.2 Hungary 1.2 Slovakia 0.9 Lithuania 0.9 Bulgaria 0.9 Austria 0.8 Cyprus 0.8 Greece 0.8 Sweden 0.7 Spain 0.7 Slovenia 0.6 Malta 0.6 Netherlands 0.5 Portugal 0.4 Denmark 0.4 Czech Republic 0.4 Italy 0.3 Germany 0.3 Belgium 0.3 Croatia 0.2 France 0.2 Great Britain 0.1 Romania 0.0 Estonia -0.1 Source: Eurostat katalog_POLSKA_doPP_Layout 1-8_2.jpg The world’s forty most competitive countries European Innovation Scoreboard 2018 Leaders of innovation Strong innovators Moderate innovators Modest innovators 1. USA 2. Singapore 3. Germany 4. Switzerland 5. Japan 6. Netherlands 7. Hong Kong 8. Great Britain 9. Sweden 10. Denmark … 32. Estonia 36. Slovenia 37. Poland Source: World Economic Forum Competitiveness Report, 2018 Source: European Commission Priority sectors Poland has selected 12 sectors with export and image potential to build a strong and widely recognizable Polish Economy Brand. These include: Their development is supported by the Ministry of Entrepreneurship and Technology, i.a. under the ‘Promotion of economy on the basis of product brands – Polish Economy Brand’ project, sub-measure 3.3.2 of the Intelligent Development Operational Programme 2014-2020. katalog_POLSKA_doPP_Layout 1-9_22.jpg medical equipment sector machinery and equipment sector beauty sector ‘Polish fashion’ sector, including clothing, footwear, leatherware and jewellery IT/ICT sector furniture sector biotechnology and pharmaceutical sector healthcare services sector Polish food specialties sector construction sector yachts and recreational boats sector vehicle and aircraft parts sector Medical equipment Poland is a highly appreciated partner as a competitive manufacturer of top quality instruments and devices used in healthcare, surgery, dentistry and veterinary medicine. Polish companies export medical equipment mostly to the EU (64%). In 2017 the value of Polish medical equipment export exceeded EUR 1.8 billion. Its share in the entire export has been increasing for years: Ø from 0.3% in 2004 Ø to 0.88% in 2017. katalog_POLSKA_doPP_Layout 1-10_2.jpg katalog_POLSKA_doPP_Layout 1-10.jpg Over 60% of the sector revenue is generated by export. katalog_POLSKA_doPP_Layout 1-10_3.jpg Machines and equipment Growing demand for raw materials stimulates the development of the machinery and equipment sector. The local market of construction machinery comprises 60,000 machines and devices – including ca. 10,000 mobile cranes, 11,000 diggers, 10,000 caterpillar dozers, 3,000 wheel loaders, etc. 10.7% share of machinery and equipment in total exports (2017) EUR 11,292 million – machinery and equipment sales in 2017 (Statistics Poland, GUS) EUR 1.2 billion: value of Polish machines and equipment exports in 2017; 18.4% more than during the same period of 2016 Source: machine.trade.gov.pl 76% of exports reach EU markets Beauty products Innovation, high quality and experience are the main reasons the sector is so competitive with other European countries. The Polish beauty market ranks 6th in Europe in terms of market value and export. katalog_POLSKA_doPP_Layout 1-12_2.jpg 400 companies in the beauty sector katalog_POLSKA_doPP_Layout 1-12.jpg 43,000 jobs 16.1% share of beauty export in total export in 2017 Fashion The Polish clothing industry is Europe’s 8th in terms of turnover, and 6th in terms of investments. The Polish designer market is also gaining significance in this sector. 5% The pace at which the Polish clothing and footwear market will grow annually until the end of this decade, according to Bank Pekao analysis. katalog_POLSKA_doPP_Layout 1-13_5.jpg katalog_POLSKA_doPP_Layout 1-14_3.jpg EUR 52 The amount Polish internet users spend on clothes and accessories online Share of expenses on clothes and footwear in total HH spending in selected EU countries Estonia 6.8% Portugal 6.3% Italy 6.2% Poland 5.2% Czech Republic 3.6% Hungary 3.6% Romania 3.4% Bulgaria 3.2% Source: Eurostat 11% of total European fur production comes from Poland. With leather exports worth EUR 0.36 billion, we are the 6th supplier globally. EUR 2,230 million garment production sold in 2017 22,080 number of companies in the clothing sector in 2016 69,000 individuals average employment in the clothing industry in 2016 EUR 4.676 billion clothing export in 2016 Source: GUS katalog_POLSKA_doPP_Layout 1-13_5.jpg IT/ICT EUR 7.5 billion sales in the Polish ICT sector Areas of Polish expertise in the ICT sector Custom software 34.7% Production of games 22.3% BPO/ITO services 19.8% Internet technologies 14% Software R&D 5% Hardware R&D 0.8% Source: ‘Growth prospects of the Polish TCT sector until 2025’ report, Ministry of Infrastructure and Development Furniture Due to relatively low costs of labour, high product quality and flexible production, Poland has been a longstanding leader of furniture export. EUR 11 billion Polish export of furniture in 2017 150,000 people average annual employment in the furniture sector in 2016 katalog_POLSKA_doPP_Layout 1-16_4.jpg Value of furniture sold (billion EUR) 2010 25.7 2011 30.2 2012 28.8 2013 31.6 2014 35.3 2015 39.1 2016 42.6 2017 46.4 Source: GUS (Statistics Poland), SWAID base According to KPMG, in 2020 the value of furniture production sold in Poland will amount to ca. EUR 11.7 billion. 5.3% share of furniture in total export katalog_POLSKA_doPP_Layout 1-17_4.jpg 43%  of companies operating on the Polish furniture market sell their products abroad 36.4% of furniture is exported to Germany Biotechnology and pharmaceuticals Highly qualified specialists and extensive scientific know-how give the Polish biotechnological sector a competitive advantage. Pharmaceutical companies are in turn an important investor on the domestic market. 184 number of enterprises operating in the biotechnology sector in 2016 8,875 number of people employed in the biotechnology sector in 2016 EUR 2.7 billion value of biotechnology exports from Poland in 2016 PLN 14,413 million value of the pharmaceutical sector production sold in 2017 EUR 2.6 billion value of Polish pharmaceutical exports in 2016 Healthcare service sector Nearly 400,000 foreign patients visit Poland every year. The potential of health tourism lies in domestic specialist medical services, i.e. cardiology, ophthalmology, or plastic surgeries. Selected medical procedures in various countries (prices in thousand USD) USA India Singapore Malaysia Mexico Hungary UK Poland Bypass surgery 113 10 20 9 3.25 - 14 7.1 Heart valve replacement 150 9.5 13 9 18 - - 9.5 Hip replacement 47 8.25 12 12.5 12.5 - - 7.9 Dental implants 1.2 1.1 1.5 2.6 0.95 0.65 1.6 0.95 Facilities important to medical tourism Type of facility Number of units General hospitals 355 Health resorts and sanatoria 167 Other medical entities (misc.) - Medical entities not classified elsewhere 590 Clinics offering medical services to women: In vitro and obstetric clinics 65 Ophthalmology – facilities providing chiefly ophthalmological services 140 Dental services – facilities providing services 819 Orthopaedics – facilities providing orthopaedic services 30 Aesthetic medicine – facilities providing beauty services in the field of aesthetic medicine and dermatology 110 Rehabilitation – rehabilitation centers other than health resorts, sanatoriums and hospitals 77 Medical spa centers – hotel centers with extended medical spa offer 136 Source: Polish Tourism Organisation, 2016 Country Medical Tourism Index Canada 76.87 Great Britain 74.85 Israel 74.17 Singapore 73.96 Costa Rica 72.78 Italy 72.01 Germany 70.69 Philippines 70.66 Japan 70.40 France 70.22 South Korea 69.97 Spain 69.33 Brazil 67.87 Jamaica 67.68 India 67.50 Columbia 67.36 United Arab Emirates 66.10 Dominican Republic 66.02 Poland 65.48 Thailand 65.46 Argentina 64.35 China 63.13 South Africa 62.05 Mexico 61.03 Russia 50.28 Source: International Healthcare Research Center Food specialities After Poland joined the EU, the agri-food industry became one of the key sectors of the Polish economy. Some of its branches have even achieved the status of EU-wide leaders. 10% share of food in total export in 2017 Strengths of the Polish agri-food sector •Polish food: natural, healthy, innovative. •Fast adaptation of merchandise to buyers’ needs. •High level of knowledge among sector employees. •Competitive prices. •Modern processing base guaranteeing consistently high quality. •Growing efficiency and productivity of labour. •Advanced quality control procedures and implementation of new quality systems. •Relatively stable financial situation. •High flexibility allowing adaptation to changing market conditions. EUR 54,799 million sold production of food products in 2017 17% fruit and vegetable share in the value of agricultural production in Poland 67% share of fruit and vegetable exports in domestic production 5% Poland’s share of the value of fruit and vegetable production in the EU-28 14% Poland’s share of the EU frozen vegetable production 81% of exports went to EU markets in 2017 Construction market The value of the Polish construction market will exceed PLN 200 billion in 2018. According to GUS data, during the first half of 2018 the construction and assembly production in companies hiring over 9 employees was nearly one fourth higher than a year earlier. Poland’s specialty is construction joinery. In 2017 we exported over 10 million windows and doors. According to the Centre of Sectoral Analyses, Poland is undoubtedly the EU’s biggest exporter with exports worth EUR 1.87 billion. 915,800 people were employed in the construction sector in 2017 Size of the Polish construction market in 2014 – 2016 segmented (billion EUR), data in current prices, exclusive of VAT 2014 2015 2016 Specialist construction works 63.2 69.9 67.9 Construction of civil and water engineering facilities 47.0 44.7 38.6 Construction works related to erection of buildings 55.5 56.7 52.9 Source: GUS (Statistics Poland) 82% of construction exports went to EU markets in 2017 512,933 national economy entities are listed in the construction section of the REGON register 3.37% share of construction in total export in 2017 Yachts and boats Boats produced in Poland are internationally recognized for their top quality, prefect finish and attention to detail. Our industry specialises in 6-9 meter long motor yachts. 22 000 Strengths of the Polish industry include individual approach, unique designs and custom orders. Our industry specialises in 6-9 meter long motor yachts. In this category, Poland is second only to the United States. 900 companies 22,000 yachts are produced in Poland annually 95% of the production is exported 82% of all off-shore yachts registered in Poland in 2017 were motor yachts 35,000 jobs katalog_POLSKA_doPP_Layout 1-23_4.jpg Car parts Poland is one of the leaders of the car part sector globally. EUR 7.7 billion export of automotive products from Poland in 2017 EUR 34.7 billion value of production sold by automotive sector companies in 2017 Aircraft parts Poland’s share of the European aircraft industry is significant. For nearly 100 years our country has been designing planes and their elements, winning acclaim all over the globe. Every plane flying in the world today has at least one part produced in Poland. 18.4% share of automotive and aircraft parts in total export in 2017 The aeronautic sector in numbers • •Sales value: EUR 1.6 billion (2016) / an increase by 22% YoY (EUR 1.3 billion in 2015) •Share of industrial production: 0.6% •Number of employees: 15,200 (according to GUS; based on data obtained from companies PAIH estimates this number at as many as 30,000) •Number of companies in the sector: 140 (including 24 companies with a staff of over 49) •Average salary in the sector: EUR 1,170 gross (national average salary in the industrial sector in 2016: EUR 1,056) •Export value: EUR 1 billion (an increase by 48% YoY) Source: PAIH (Polish Investment and Trade Agency) 79% of exports went to EU countries in 2017 katalog_POLSKA_doPP_Layout 1-23_5.jpg Ministry of Entrepreneurship and Technology Pl. Trzech Krzyży 3/5 00-507 Warszawa uwagi_eksporter@mpit.gov.pl sekretariatdhm@mpit.gov.pl http://www.gov.pl/przedsiebiorczosc-technologia www.trade.gov.pl ISBN 978-83-952846-0-1 Publication co-financed from the European Regional Development Fund. katalog_POLSKA_doPP_Layout 1-24_2.jpg katalog_POLSKA_doPP_Layout 1-24.jpg