FDI falls to USD 6 billion in 2005

Preliminary data prove that USD 6 billion of foreign direct investment flowed into Poland in 2005. However, last year many important projects were launched, which will bring fruits in the future.

According to “Puls Biznesu” unofficial sources, USD 6 billion of FDI was invested in Poland last year.

“According to our cautious estimates, the level of investment was close to this level”, Marcin Kaszuba, the deputy CEO of the Polish investment agency PAIIZ commented.

This would be the worst result in years. In 2002, FDI amounted to USD 6064m, a year later they grew to USD 6420m. Only in 1997 they did not exceed the level of USD 6 billion. Marcin Kaszuba warned however, that the data is very preliminary and credible data will be published in the second quarter of the year.

Expert have no doubts who is to blame for the situation.

“Poland is not trying to become attractive to investors. Conflicts with Eureko, problems over the merger of Pekao and Bank BPH, controversial ideas of the former Minister of Finance who said that investors should be divided into different categories, coalition partners who fight against foreign capital, all this discourages from investing in Poland”, Bohdan Wyznikiwicz, the head of the Gdansk Institute for Market Economics commented.

Poor results may be an effect of too few agreements signed in the previous years. In 2005, however, many big investors entered Poland, including MAN, Michelin, Volvo, IBM, HP, Delphi and – last but not least – LG Philips LCD. The latter company was followed by six subcontractors from the LG group, and LG Electronics. Altogether 9 plants will be built by the Korean group worth EUR 1.1 billion. 11,500 jobs will be created.

Source: Puls Biznesu/APA