In this article we explore Poland’s current economic landscape, assess emerging trends, and delineate prospective opportunities for Italian entrepreneurs seeking to capitalize on Poland’s evolving market dynamics.
The article was written by our friend and Polish colleague, Przemek Suchanek. Przemek lives in Bielsko-Biala in southern Poland and has already collaborated with Italian companies interested in expanding their presence in his country.
Demographics: The Prime Frontier of Business Opportunities
As Poland experiences economic growth and societal changes, significant demographic shifts are unfolding:
- Marriage rates have drastically declined.
- The demographic landscape is changing, with a decrease in women aged 25-34 and decrease in birth rates among women.
- Delayed childbirth is becoming more common.
- Overall fertility rates are decreasing and the decline in births is accelerating.
- Single-person households are on the rise, with over 60% of households now consisting of one or two people.
Despite efforts to boost fertility rates, Poland is becoming wealthier yet older, echoing challenges seen in more developed nations.
In this context, Italian businesses possess invaluable expertise in catering to aging populations, having navigated similar scenarios in their home country. They are experienced in developing product and services tailored to older demographics, spanning medical care to broader support for elderly individuals lacking familial proximity, addressing real estate market shifts, offering wealth management solutions for elder etc. Understanding and addressing Poland’s demographic challenges offer Italian entrepreneurs a promising frontier for innovation and growth.
Climate Goals: A Lucrative Avenue for Business Expansion
The European Commission’s decision to release €59.8 billion for Poland, comprising loans and grants previously withheld due to political reasons, marks a pivotal moment. For businesses, this translates to a compressed timeline for resource utilization, with the program slated for implementation between 2021 and 2026.
The National Reconstruction and Resilience Plan (KPO) encompasses 55 investments and 55 reforms, aimed at bolstering the Polish economy and enhancing its resilience to future crises. Italian entrepreneurs would do well to stay abreast of tender announcements in Poland and gear up for swift project execution in sectors buoyed by funds from the National Reconstruction Plan (KPO).
Notably, the energy transformation aspect permeates all facets of the KPO, with a substantial 46.6% of the budget allocated toward achieving climate objectives. In conclusion, the KPO presents a wealth of opportunities for Italian businesses looking to expand their footprint in Poland. By aligning their expertise with the program’s focus areas and capitalizing on the allocated resources, Italian entrepreneurs can position themselves at the forefront of Poland’s burgeoning green economy while reaping substantial rewards.
Defence: A Lucrative Sector for Business Expansion
The third domain ripe with business prospects for Italian companies in Poland, particularly in the short term, lies in the realm of state security and resilience. In light of Russia’s belligerence and its aggressive stance towards neighbouring nations, Poland has ramped up its defence efforts.
In 2023, Poland bolstered its defence expenditure to nearly 4% of GDP, amounting to $24.8 billion, closely trailing Italy’s defence outlay of $28.6 billion. Projections for defence spending in 2024 stand at $39.94 billion, underscoring Poland’s commitment to fortifying its security apparatus.
Italian entrepreneurs would also do well to explore opportunities in supplying equipment for civil defence. Historically underfunded in Poland, the civil defence sector is poised to witness a surge in investment alongside the uptick in defence spending.
Conclusions
In summary, it is evident that demographics, security, and climate goals represent domains where immediate or near-term business opportunities abound. Crucially, these sectors not only exhibit genuine demand for products and services but also offer substantial purchasing power, with billions of euros earmarked for investment. Italian businesses adept at navigating these sectors stand to reap substantial rewards in Poland’s burgeoning market landscape.