PMR Research is a specialised custom market research unit of PMR Ltd., a British-American company based in Poland. We offer a wide range of research services in Central and Eastern Europe for companies interested in business over the countries in the region.

Research services provided by PMR Research in Poland include:

• brand and company image studies
• research on customer preferences, their satisfaction and their purchasing habits
• product concept tests
• usage & attitude studies
• internet surveys
• quantitative surveys - telephone, CATI, face-to-face
• qualitative research - focus groups, IDIs
• industry analyses (comprehensive analyses of given market sectors performed using PMR's proprietary methodology PMR MarketInsight)
• preparation of databases
• fieldwork services

Why to invest?

Member of the EU Location between East and West Long industrial tradition Stable economy Stable political system Wide educational system Biggest country of the EU members in the CEE Diversified industry Still attractive employment costs Attractive tax system Euro 2012 football games speed up changes and creates extra investment possibilities

Business and economical environment

Being the biggest of the CEE countries that are members of the EU, Poland offers not only the investment for export opportunities but also an interesting domestic market with over 38.1mn consumers and a variety of industry and service branches active on it. The employment costs, despite the 2007/2008 surge in average salary and curbing of unemployment, are still on quite an attractive level especially as the Polish Zloty weakened in Q4 2008 and Q1 2009. A flat corporate income tax rate of 19%, which Poland has offered since 2004, and recent reductions in social insurance contributions, as well as major personal income tax reform effective from 2009, has reduced operating costs for businesses. The availability of skilled workforce provided by the developed, however, still not completely reformed educational system is increasing as many of the Poles that sought employment in the West after accession to the EU now return home as the economy has revived.

The key investment opportunities include the metal processing industry, business process outsourcing centres, food manufacturing, automotive, construction, aerospace, research and development, mechanical industry, domestic appliance manufacturing, renewable energy, biotechnology and the wood industry. With a developed industry, Poland also offers access to the wide base of local suppliers offering quality components for further usage in other products. Nowadays, an interesting investment opportunity is provided by the Euro 2012 football tournament, for which the preparations include the mass development of the transport and tourism infrastructure. The first of this pair is also being developed with the use of the EU funds as it is a well known as a bottle neck for sustainable growth in Poland.

The Polish economy expanded strongly in 2008 by posting annual growth of 4.8% (however, the result was lower than in 2007 when 6.7% was recorded) and the domestic demand stayed the main driver. However, recent macroeconomic data confirm that economic growth is gradually decelerating, and recent forecast for 2009 place it in a range of +/- 1.5% and 1.9% for 2010. It must be emphasized that one of the reasons why even in the global crisis times the GDP in Poland may still grow is a massive usage of the EU infrastructure development funds. Poland is also in contrary with the global trend going in the direction of introducing fiscal austerity measures instead of bailing out ailing branches of the economy.

The unemployment rate in Poland decreased from the 20.6% recorded in the 2004 to 9.8% in 2008 but due to expected lower demand both internally and in terms of foreign trade for the Polish products and services is forecasted to increase to 11.4% in 2009 and 13.5% in 2010.

Partially in reaction at the weakening Polish Zloty by 38% in the period between October 2008 and March 2009 Polish government started to openly discuss possibility to introduce Euro in Poland by the year 2012 and joining the ERM II as soon as possible. However, this may be hard to achieve with a uncertain situation on the capital markets and looming recession. It must be also emphasized that Poland has strongly developed supply links with the companies from Western Europe and keeping its own currency allows local manufacturers to reduce Euro prices in hard times making Eurozone entry less attractive for the government.

Social environment

Poland has a total of 38.1 million inhabitants. For several years now, the country’s population has been gradually decreasing. Currently, the young (aged below 18) still account for a greater percentage share than the elderly (men aged over 65 and women over 60) – 20.1% and 15.7% respectively. However, owing to the declining population size and the rising average life span, the gap between the two age groups has been shrinking steadily for several years. Despite its multicultural past, at present Poland has a stable ethnical composition, most of its inhabitants being native Poles – 96.7% of the population. The largest national minorities include: German (0.4% of total population), Belarusian (0.1%) and Ukrainian (0.1%). Polish is the official language of Poland.
The population of Poland is mostly Roman Catholic - 89.8% (approx. 75% may be considered as practicing). Other large groups are Eastern Orthodox (1.3%), Protestant (0.3%) and other, including unspecified (8.6%).

Infrastructure and technological infrastructure

Poland has a poorly developed infrastructure of roads, expressways, highways, waterways and railroads considering Western European standards. The total length of railways in Poland is 20,665km, which puts Poland in first place in Europe in terms of railway network density. The total length of Highways/Expressways in Poland is 1,350 km. There were a total of 12mn registered passenger automobiles in Poland, as well as 4mn registered trucks and buses in 2005. Poland has 12 major airports, and a total of 105 airports and airfields as well as 5 heliports. The total length of navigable rivers and canals is 3,640 km. The merchant marine fleet of Poland consists of 106 ships, but only 9 are registered inside the country. Poland's principal ports, river ports and harbours are Gdansk, Gdynia, Kolobrzeg, Szczecin, Swinoujscie, Ustka, Warsaw and Wroclaw.

At present, Poland has a total of 830 km of motorways and 515 km of expressways. Based on existing plans, the Polish motorway and expressway network is to have over 9,000 km of routes by the end of 2013.

Political environment

Poland is a democratic republic. Its current constitution dates from 1997. The government structure centres on the Council of Ministers, led by a prime minister. The president appoints the cabinet according to the proposals of the prime minister, typically from the majority coalition in the bicameral legislature's lower house. The president, elected by popular vote every 5 years, serves as the head of state. Poland’s voters elect a two house parliament (National Assembly consisting of a lower house Sejm and Senate). Poland joined NATO in 1999 and the European Union in 2004. Since its return to democracy, Poland has steadfastly pursued a policy of liberalising the economy and today stands out as one of the most successful and open examples of the transition from command to a market economy.

Finally, it must be emphasized that after two years of stagnation during the 2005 – 2007 right government of the Kaczynski twins, the country is now enjoying a liberal government of Mr Tusk, who is a young and dynamic technocrat and is addressing the key problems of Poland much better than his predecessor, who seemed to be interested mostly in chasing the secret police agents from the times nearly 20 years ago than in bringing Poland into the world of the modern economy. In comparison to the previous establishment, the current government has a majority in the Parliament which increases the possibility that its plan to reform economic activities will come into reality.

General data

Area: 312,685 sq km
Population: 38.1mn (2008)
Capital city: Warsaw
Language: Polish
Ethnic groups: Polish 96.7%, German 0.4%, Belarusian 0.1%, Ukrainian 0.1%, other 2.7% (2002)
Land boundaries: Russia 432 km, Lithuania 91 km, Belarus 605 km, Ukraine 428 km, Slovakia 420 km, Czech Republic 615 km, Germany 456 km

Major economic indicators

	2006	2007	2008	2009f	2010f
GDP (EUR bn)	272.1	310.8	360.2	295.3	347.2
Population (mn)	38.1	38.1	38.1	38.1	38.1
GDP per capita (EUR)	7,137	8,154	9,453	7,750	9,115
GDP (constant prices y-o-y %)	6.2	6.7	4.8	-0.5	1.9
Exports, real, y-o-y (%)	14.6	9.1	5.8	-5.2	4.8
Imports, real, y-o-y (%)	17.3	13.6	6.2	-6.2	3.6
CPI (average, y-o-y %)	1.0	2.5	4.2	2.6	1.9
Central bank reference rate	4.00	5.00	5.00	3.25	4.00
Monthly wage, nominal (EUR)	677	762	904	744	889
Unemployment rate (%)	16.2	12.7	9.8	11.4	13.5
Budget balance/GDP (%)	-1.8	-2.0	-2.4	-3.5	-3.1
Net FDI (EUR bn)	15.7	16.7	11.0	7.0	10.0
FDI % GDP	5.7	5.4	3.0	2.4	2.9
FX reserves (EUR bn)	36.8	44.7	44.1	48.6	52.4
Exchange rate to USD AVG	3.10	2.76	2,.39	3.35	2.93
Exchange rate to EUR AVG	3.90	3.78	3.52	4.34	3.85

Last update: Q2 2009 

Useful data

Currency: zloty (PLN)
Time zone: GMT +1
Area code: +48


If you would like to find out more on the Polish market opportunities please do not hesitate to contact us directly:
phone: (48 12) 618 90 80
faks (48 12) 618 90 08
e-mail: [email protected]

Poland Examples of projects