Foreign investments in Poland decrease, facing economic pressures and low reinvested profits as exports and imports shift.
Foreign Direct Investment Decline
Poland is experiencing a significant drop in foreign direct investment (FDI), with 12-month figures reaching pandemic-era lows, PKO BP analysts report. A recent National Bank of Poland (NBP) report shows a current account deficit of 6.1 billion PLN (1.43 billion euros) in September 2024, reflecting economic challenges and reduced reinvested profits.
Export and Import Trends
While exports and imports rose year-over-year in euros, a nearly 5% appreciation of the Polish złoty led to declines in domestic value. Exports dropped across all categories, with capital goods, transport equipment, and supplies hardest hit, attributed to Germany’s economic stagnation and challenges in the automotive sector.
Prospects for Current Account Balance
The current account balance remains in surplus, but the 12-month FDI decline to around 2% of GDP raises concerns. Analysts predict further pressure on the current account from energy and defense investment imports but anticipate no financing issues, expecting positive broader balance metrics to endure.