1. Economic Survey 2018 Poland in the eyes of foreign investors

2. International Group of Chambers of Commerce in Poland

3. Characteristics of the surveyed companies
Part I

4. 42,1% Structure of respondents - branches. Branches 11,2% 2,0% 19,1%
Construction
Supply
42,1%
19,1%
Services
25,7%
Economic Survey
2018
Trade
One fourth of businessmen taking part in the economic survey in 2018 represent the service industry (42.1%). Over 1/4 operate in manufacturing (25.7%), and almost one in five - in trade (19.1%). More than one in ten respondents engage in construction (11.2%). The lowest percentage of entrepreneurs represent electricity and water supply, or waste disposal sectors.
Manufacturing

5. 31,0% Structure of respondents – number of employees. 21,9% 29,7%
17,3%
Over 250 employees
Economic Survey
2018
No more than 9 employees
The majority of entrepreneurs hire over 250 employees in 2018 (31.0%). Over a half of respondents are medium (29.7%) and small companies (21.9%). Only 17.3% of respondents represent micro companies.

6. 51,8% Structure of respondents – share of exports in total turnover.
81-100%
14,9%
12,2%
51,8%
Share of exports
41-60%
0-20%
11,2%
21-40%
Economic Survey
2018
For 51.8% (over a half) of companies surveyed in 2018, the share of exports in total turnover was no more than 20%. On the other hand, for 14.9% of respondents it was between 80 and 100%. Other possible answers (20-40%, 40-60% and 60-80%) were chosen by 11.2, 12.2, and 9.9% of respondents, respectively.
9,9%
61-80%

7. Economic situation in Poland
Part II

8. How do you evaluate the current state of the Polish economy
How do you evaluate the current state of the Polish economy? Comparison to the previous editions of the survey
9,0%
9,0%
6,0%
12,1%
Economic Survey
2018
The vast majority of entrepreneurs taking part in the 2018 economic survey positively assessed the current state of the Polish economy. Exactly a half (50.0%) graded economic situation as satisfactory, and another 46.4% - as good. A negative opinion was expressed by 3.6% of respondents.
Good

9. Prospects for the economy
What are the prospects for the Polish economy in 2018 compared to 2017?
No change
33,8%
54,4%
Better
Prospects for the economy
Economic Survey
2018
According to more than a half of respondents (54.4%), the outlook for the Polish economy in 2018 will remain unchanged compared to One in three respondents (33.8%), rated the prospects as better. 11.8% of respondents rated them negatively.
11,8%
Worse

10. How do you evaluate the current economic situation of your company?
Comparison to the previous editions of the survey
34,7%
35,0%
38,5%
38,0%
Economic Survey
2018
Only 3.3% of respondents rated the current economic situation of their business badly. According to 32.5%, the situation is satisfactory. The most, more than 6 out of 10 respondents, considered the economic situation of their business as good (64.3%).

11. Prospects for the company
What are the prospects for your company in 2018 compared to 2017?
56,6%
38,8%
No change
Better
Prospects for the company
Economic Survey
2018
Entrepreneurs' expectations about the company's situation in the current year, compared with the previous year, are very optimistic. According to over a half of the respondents (56.6%), the situation will improve, and almost 4 in 10 (38.8%) believe that it will remain unchanged. 4.6% of respondents expect that the situation will become worse.
4,6%
Worse

12. What are the prospects for your company’s turnover in 2018 compared to 2017?
46,7%
Increase
No change
Company’s turnover
47,4%
Economic Survey
2018
As regards the company’s turnover in 2018, in comparison to last year, the proportion between investors that foresee no changes (47.4%) and those expecting an increase (46.7%) is almost one to one. 5.9% of respondents expect a decrease in turnover.
5,9%
Decrease

13. What are the prospects for your company’s exports in 2018 compared to 2017?
28,2%
68,1%
Increase
Exports
No change
Economic Survey
2018
When it comes to the company’s exports in 2018 in comparison to 2017, a vast majority of respondents (68.1%) foresee no changes. Over 1/4 of entrepreneurs (28.2%) has a positive attitude in that regard, foreseeing an increase. Only 3.7% of respondents expect a decrease.
3,7%
Decrease

14. What are the prospects for your company’s number of employees in 2018 compared to 2017?
Comparison to the previous edition of the survey
No change
45,4%
48,8%
45,3%
Increase
49,1%
Number of employees
Economic Survey
2018
The structure of answers regarding the number of employees in 2018 is almost identical as in The differences between the results vary from 0.1 percentage points (increase and decrease of employment) to 0.3 percentage points (”no change” category).
It is worth mentioning here, that the respondents, on average, predict a 6.2% growth of salaries in 2018., which is 1.2 percentage points more than in 2017.
5,7%
5,8%
Decrease
2017 r.
2018 r.

15. What are the prospects for your company’s expenditure on investment in 2018 compared to 2017?
Comparison to the previous edition of the survey
No change
52,5%
36,7%
Increase
53,1%
32,5%
Economic Survey
2018
Investment
Decrease
In comparison to the 2017 economic survey, in 2018 the percentage of entrepreneurs that declare an increase of expenditure on investment has grown from 32.5 to 36.7%. There has been a slight decrease in the percentage of those declaring that their of expenditure on investment would remain unchanged. The percentage of respondents foreseeing a decrease in of expenditure on investment dropped from 14.4 to 10.8%.
14,4%
10,8%
2017 r.
2018 r.

16. Prospects for the companies in 2018 and 2017
Economic Survey
2018
In comparison to the 2017 economic survey, in the 2018 edition we observe a 1.9 point decrease in percentage of respondents declaring an improvement of branch prospects, and a 7.5 pp. increase in the percentage of companies expecting no changes.
However, we can see more optimism among respondents when it comes to foreseeing an improvement in the company’s situation (up by 12.3 pp.).
Also in investment expenditure more respondents have chosen the ”increase” option (up by 4.2 pp.), while at the same time fewer of them are pessimistic (down by 3.6 pp.) and neutral (down by 0.6 pp.).
As regards employment and exports, no major changes were noted when it comes to the percentage of respondents declaring an increase.
increase
no change
decrease

17. Investment factors
Part III

18. Evaluation of investment factors (points and change of rank 2017/2018 1 – min; 5 – max)
1. EU membership
2. Employees’ qualifications
3. Higher education
4. Employees’ motivation and productivity
5. Quality and availability of local suppliers
Economic Survey
2018
+ 1
Similarly to the previous year, the leading position in the survey holds Poland’s EU membership with an average increase of 0.1 (up to 4.5). Staff qualifications were ranked second in the order of the average, while the average has grown by 0.2 (to 3.8). Third place was taken by higher education (an average of 3.7), while fourth by the employees’ motivation and productivity (an average of 3.6) – both went one position up in comparison to the 2017 edition of the economic survey. The productivity and motivation of employees holds the fifth position, two positions down in comparison to last year.
- 2

19. Evaluation of investment factors (points and change of rank 2017/2018 1 – min; 5 – max)
6. Infrastructure (transport, communication, IT, energy)
7. Payment morale
8. R&D environment
9. Labour costs
10. Access to state or EU funding
+ 1
Economic Survey
2018
- 1
In 2018, the infrastructure was rated similarly to last year, 3.4 points. Seventh position was taken by the payment morale (average 3.2, decrease by 0.1). The average rating of the next investment factor – R&D conditions - has dropped slightly (3.1), but its ranking has risen one position up thanks to a decrease in the score of the following factor. As regards labour costs, the average dropped by 0.1 and the rank went one position down. The access to state or EU funding remains unchanged.

20. Evaluation of investment factors (points and change of rank 2017/2018 1 – min; 5 – max)
11. Fight against corruption and crime
12. Adequacy of vocational training
13. Legal flexibility of employment
14. Public administration
15. Transparency of open invitations to tender
16. Legal safety
+ 6
+ 4
Economic Survey
2018
- 2
The average rating of the fight against corruption and crime increased by 0.1 and remains at the same position in the ranking). The adequacy of vocational training went 6 positions up, which is the best result in this year’s edition of the survey (average up by 0.2%). The legal flexibility of employment moved 4 positions up. The public administration remains in the same position. Position number 15 goes to the transparency of open invitations to tender, which got the same number of points as last year, but dropped by two positions anyway. The legal safety, despite a slight increase in the average score (by 0.04), moved one position down in the ranking.
- 1

21. Evaluation of investment factors (points and change of rank 2017/2018 1 – min; 5 – max)
17. Availability of specialised staff
18. Tax burden
19. Tax system and tax administration
20. Predictability of economic policies
21. Political and social stability
- 5
- 2
+ 1
Economic Survey
2018
Among the factors ranked at the end of the list, the availability of specialised staff dropped by 5 positions (while at the same time losing 0.1 points), and tax burden moved two positions down. The predictability of economic policies and the political and social stability swapped positions.
- 1

22. Evaluation of investment factors (points and change of rank 2017/2018 1 – min; 5 – max)
Adequacy of vocational training
18. position position 2018
17. position position 2018
Legal flexibility of employment
Availability of specialised staff
12. position position 2018
3. position position 2018
Quality and availability of local suppliers
Transparency of open invitations to tender
13. position position 2018
Economic Survey
2018
On the other hand, the availability of specialised staff, the quality and availability of local suppliers, the transparency of open invitations to tender and the tax burden are the factors that dropped the most.
16. position position 2018
Tax burden

23. Investment attractiveness
Part IV

24. YES Would you invest in Poland again? 90,1% NO 9,9% Economic Survey
2018
9 out of 10 entrepreneurs declare that they would invest in Poland again.

25. Would you invest in Poland again?
Economic Survey
2018
The percentage of entrepreneurs that declare they would invest in Poland again dropped by 5.5 pp., which is the biggest decrease since 2009.

26. Investment attractiveness of CEE countries in 2018 according to 300 investors from Poland
6 – very attractive
1 – not attractive at all
Economic Survey
2018
Poland got the best evaluation among the CEE countries when it comes to investment attractiveness.
PL CZ SK EE SI LV LT RO HR HU BG

27. Investment attractiveness of CEE countries in 2018 according to 1700 investors from the region
6 – very attractive
1 – not attractive at all
Economic Survey
2018
Poland got the second best evaluation among the CEE countries when it comes to investment attractiveness.
CZ PL EE SK SI LV LT HR RO HU RS

28. Investment attractiveness of CEE countries according to
investors from the whole region
Country
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
Czechia 1 2
Poland 4
Estonia 3 5 8 6
Slovakia
Slovenia
Latvia 7 9 13 11
Lithuania 10
Croatia
Romania
Hungary
Serbia 12
Economic Survey
2018
Poland got the second best evaluation among the CEE countries when it comes to investment attractiveness.

29. Are you in favour of introducing the Euro in Poland?
Economic Survey
2018
In comparison to 2017, more entrepreneurs are in favour of introducing the Euro in Poland (from 49.3% up to 53.8%). From 2009 to 2014 we were noticing lesser support for introducing the Euro among survey’s participants, however in 2015 and 2017 more and more businessmen declared their support for that solution. No
No opinion

30. Thank you for your attention!
Economic Survey
2018