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POLAND IS A 'SAFE HAVEN' FOR BUSINESS IN TURBULENT TIMES
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In the face of global economic downturn, Poland economy remains strong and confident
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But an employment crunch threatens long-term development of country
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Poland needs to harness the value of innovation, huge opportunities for UK business
- In the age of globalisation trade and investment is a major mechanism for people to integrate through co-operation and the sharing of their combined human capital. Trade and business co-operation between the UK and Poland is strong and growing fast. I have come to the UK at the invitation of the BPCC (British Polish Chamber of Commerce) to encourage further development between the two countries. said President Walesa.
- Poland is an excellent but as yet not fully exploited opportunity by British companies! We are proud to visit the UK with President Lech Walesa to promote bilateral trade and investment. British companies need to make the most of both export and business expansion opportunities at this exciting time in Poland’s development - commented David Thomas, BPCC chairman, at a Leadership Forum organised on 8 May at Durham University together with One North East and the North East Chamber of Commerce.
Better in Poland than people think
The Polish economy continues to power ahead but it seems that British industry has not noticed. The zloty has appreciated against sterling by 40% since Poland joined the EU and by 20% since last year. UK firms who were last in Poland on trade missions in 2004 or ‘05 still say “Polish companies and consumers can’t afford our products”. No longer true.
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A pound today costs 4.30 zlotys. In May 2004 it cost 7.15. That makes British exports to Poland 40% more competitive!
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Corporate investment in Poland is up by over 30% in Q3 2007 compared to the same period in 2006
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Consumer spending is up by 24% in Q1 2008 compared to the same period in 2007
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Poland’s burgeoning middle-class consumers are clustered in six high-growth cities, all of which have unemployment of 4% or less (national average 11.1%)
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Average wages are soaring, rising by 10.8% in the year to March 2008
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The economy is based on solid fundamentals and is set to grow at 4.5%-5.5% for the next 5 years
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Over 67 billion in EU funds has been earmarked for Poland, with another 26 billion in Polish public and private sector match- funding. The lion’s share of this �93 billion is to be spent on infrastructure projects. British firms with experience in PPP projects will have a head start in bidding for this type of work.
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Despite a strong zloty, Poland’s exports grew by 15% to 101 billion, while imports grew by 17.7% to 119 billion
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British exports to Poland are lagging behind the Polish performance. In the first two months of 2008, Polish exports to the UK soared by 12.8% compared to the same period in 2007, in the teeth of a rising zloty. British firms only managed a 1.7% increase in exports to Poland during this period, even though a weak pound would have made their products far more competitive on the Polish market.
If you don’t recognise potential growth will be restricted
- Poland has been kept a secret for too long. British companies are not exploiting Europe’s up-and-coming new business destination. Just listen to anyone who returns from a visit there it’s always better than they thought before setting off - said Martin Oxley, BPCC CEO. But just how strong is Poland’s economy and what are the growth opportunities for British companies?
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At the BPCC’s recent Annual Conference, top economists from both countries were united in confirming Poland’s strong economic potential in the face of a global downturn. Polish economic fundamentals are strong; internal demand will drive growth along with exports and the injection of EU funds. The zloty is likely to strengthen more, Euro entry is likely delayed and the country will consolidate its position as the leading CEE destination for foreign direct investment. The profile is likely to move more upstream to R&D investments rather than low-cost manufacture. This change is apparent already with sector clusters developing across Poland's regions. The conference confirmed both the export opportunity and also a unique window of opportunity for British companies to enter Poland as a European manufacturing and distribution base.
Huge potential, need to develop human capital and technologies
It is more than trade and investment which is on offer. Poland is currently facing an employment crunch and an innovation gap. This creates an unprecedented opportunity to take part in partnerships and joint venture activity to develop human capital and enable enterprise development. Nearly �12 billion of EU funds are to be made available for projects to enhance Poland's human capital, another �10 billion has been earmarked for the innovative economy programme.
Legendary Solidarity leader and former Polish president Lech Walesa will be in Durham to highlight these opportunities to UK business.
Background information on the BPCC
Established in 1992, the BPCC is Poland’s leading international voice of business. The BPCC is a not-for-profit membership based organisation comprising 480 member companies from 12 countries which represent 25% of all the foreign direct investment in Poland since 1990. Since 1997, the BPCC has also been supporting the interests of Polish exporters. The BPCC has taken an active role in promoting sustainable employment and bilateral human capital development since Poland became a member of the EU. For the past four consecutive years 2008, 2007, 2006 and 2005 the BPCC has been named the “Best British Chamber of Commerce in Continental Europe”. This year the Chamber had the great honour to be nominated the “Best British Organisation Supporting Poles in the UK”.
8 May Lech Wałęsa Nobel Peace Prize Winner and President of Poland 1990 to 1995, together with a BPCC delegation, visits Durham to promote to UK and foreign invertors all possibilities of developing business in Poland. President Wałęsa’s lecture will be given to more than 200 investors at 10.45 local time.
Additional Information:
Martin Oxley, Chief Executive Officer British Polish Chamber of Commerce
Tel: (+48 22) 320 01 00 Fax: (+48 22) 621 19 37 ul. Fabryczna 16/22; 00-446 Warszawa
www.bpcc.org.pl
e-mail:
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Agnieszka Libura; Director British Polish Chamber of Commerce Kraków
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tel.: +48 500 22 89 89
Beata Pietrasiewicz
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tel.: +48 501 212 405
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