POLAND 3.4.2019 POLAND COUNTRY OUTLOOK Krakow belongs to the - - PowerPoint PPT Presentation

POLAND

3.4.2019

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POLAND – COUNTRY OUTLOOK

Basic Facts Area: 312, 678 sq.km Population 38 million Capital: Warsaw metropolitan area population 3mn Time zone: GMT +1 (Helsinki is GMT +2) Currency: 1 Zloty (PLN) = 100 Groszy Life expectation: Female 81.6, Male 73.8 Biggest cities Warsaw 1.75 Mio Krakow 0.76 Mio Lodz 0.72 Mio Wroclaw 0.63 Mio Poznan 0.54 Mio Gdansk 0.46 Mio Szczecin 0.40 Mio Lublin 0.36 Mio Bydgosczcz 0.36 Mio

“Poland is the 1st most attractive foreign direct investment destination in Central Eastern Europe and 5th most attractive in Europe.”

EY European Attractiveness Survey 2017

“Krakow belongs to the worlds top best global

• utsourcing cities in 2017”

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DEMOGRAPHY PROSPECTS

• The biggest population segment in 2017 is aged

30-34

• In 2030 most opportunities will lie in the middle

aged 40-55 segment - 9.5 million inhabitants (25,5 %) will fall into this segment in 2030.

• Population is ageing and falling due to a drop in

birth rates and negative net migration

• Poles are ambitious, hard-working and highly-

educated people. Poland, largest country in the CEE region, offers a large domestic market for the companies

Poland 2017 2030 Total population 38 Mio 37.3 Mio Median age 40.2 years 45.9 years Life expectancy 77.9 years 79.9 years

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LARGEST POPULATION

• Poland is the largest country in the CEE

region, with 38% of total region population.

• Poland is the 6th populous country in EU and the

7th in the Europe region

• Poland population is 30% bigger that the total

population of Nordic countries

38 6.1 56.9 101.3

POLAND BALTICS REST OF CEE CEE TOTAL

POPULATION COMPARISON 2017 (Million)

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POLISH ECONOMY OUTLOOK

GDP DYNAMICS TOP PERFORMER

Economic growth %

• 4,6% in 2017, which was the biggest increase

since 2011

• it is expected to growth 4,7% in 2018
• and 3,9% in 2019.

GPD per capita (PPS 2017)

• EU-28: 100
• Poland: 70
• Finland: 109

Average gross annual earnings (EUR, 2018)

• Poland: 13 224 EUR
• Finland: 43 250EUR

Poland is globally 25th and EU 8th biggest economy by GDP value.

Consumption and investment are the main growth drivers, supported by fast wage growth, strong consumer confidence and EU structural funds. -EU forecast 2018

• 10
• 8
• 6
• 4
• 2

2 4 6 8 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018* 2019*

GDP Dynamics %

EU 28 Poland Finland

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ECONOMIC STRUCTURE

Share of industries in Poland: agriculture: 2.4% industry: 40.2% services: 64.3% (2017 est.) EU Average: agriculture: 1.6% industry: 25.6% services: 74% (2017 est.)

• Macroeconomic situation is solid in Poland; healthy

public finance and long term predictability

• Poland has diversified economy; A wide range of

manufacturing, service and agricultural companies. Major industries are i.a: automotive, aviation, food processing electronics and finance. Two main industry pillars; A) Traditional industries from post communist era, which have been adapted to modern forms B) Fresh industrial clusters formed through investments in the form of Greenfield investments by foreign global players

Agricult ure Services Industry

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TRADE RELATIONS

27.10% 6.30% 8.00% 5.30% 6.40%

Germany Russia China Italy Netherlands

Main import countries

27.0 % 6.5 % 6.5 % 5.8 % 4.4 %

Germany U.K Czech… France Italy

Main export countries

Source: Dun&Bradstreet 2018 Main import mix:

• Machinery & mechanical

appliances

• Electrical machnirey & equip.
• Vechiles (other than train/rail)
• Plastic & plastic articles

Main export mix:

• Machinery & mechanical

appliances

• Vechiles (other than train/rail)
• Furniture, bedding, mattress..
• Plastic & plastic articles

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KEY INDUSTRY SECTORS IN POLAND

• Automotive industry
• Agriculture & food industry
• Domestic appliances
• Electronics sectort
• Aviation
• Developed business services (R&D, BPO, SSC and IT)
• ICT sector
• Gas & energy sector
• Mining industry; coal, copper & other metals
• Metal industry
• Yatching and ship industry
• Infrastructure
• Emerging biotechnology sector
• Constantly growing renewable energy sector

High-tech, machine industry, automotive & BPO Chemical, high-tech, machine & food Machine, food, BPO, logistics & tourism Timber, food, electronics INDUSTRY CLUSTERS BY REGION BPO, household goods; textiles, logistics Chemical, high- tech, BPO, tourism Food, building industry, BPO Food, building & chemical industries Aviation Food, machine & tourism Water economy, high-tech, tourism Tourism, BPO, automotive Metal & building, Health Tourism, timber, food & alternative energy Automotive, BPO, logistics Logistics, food, timber, BPO

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LABOUR

Wages

The average monthly gross wage in Poland is €1,102 and net wage €784 (2018). Minimun monthly wage in Poland is fixed €502.8 (2018). Social cost for employer is a bit more than 20 % of salary

586 787 885 955 980 1013 1081 1092 1102 1149 1158 1221 1379 1626 1779 2189 2498 2534 2855 2957 3133 3340 3380 3401 3632 3703 4412 5191 Bulgaria Romania Lithuania Hungary Slovakia Latvia Croatia Greece Poland Czech Republic Portugal Estonia Malta Slovenia Cyprus Spain United Kingdom Italy Netherlands France Ireland Sweden Finland Belgium Austria Germany Luxembourg Denmark

Average monthly gross wage 2018, EU

Source: Reinish Fischer

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About 200 Finnish companies present in Poland…

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KEY WORDS FOR YOUR SUCCESS IN POLAND

• Preparation,
• Determination,
• Local partner,
• Marketing and proactive selling,
• Budget and resources for market entry,
• Relations matter,
• Mind cultural differences.

Business Finland in CEE - who we are

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BUSINESS FINLAND CENTRAL & EASTERN EUROPE

1.4.2019 KIRSI-MAARIT POLJATSCHENKO

Commercial Counsellor, Head of Region, Central & East Europe Logistics and Transportation

ZOFIA STELMASZCZYK

Senior Advisor Cleantech, Energy

PIOTR HAJDECKI

Senior Advisor Digitalization

AGNIESZKA WROBEL

Advisor Health & Wellbeing

NILÜFER ALAPINAR

Senior Advisor Bioeconomy and Circular Economy

PELIN GÖKÇEK

Senior Advisor Cleantech

TALHA DAYI

Advisor Digitalization

ZHANIYA ADILBEK

Trade Commissioner Bioeconomy and Circular Economy

NINA SULIMOVA

Junior Advisor Administration

OLGA MAKEEVA

Senior Advisor Health & Wellbeing Invest in Finland

KAREN GRIGORYAN

Head of IIF Russia Invest in Finland

PAVEL CHESHEV

Senior Advisor Health & Wellbeing Innovation collaboration

RENATA AKZHIGITOVA

Advisor Travel & Tourism Visit Finland

ALEKSEJ LEPPÄNEN

Growth Companies Senior Advisor Consumer Business

AIJA KALANDER

Growth Companies Senior Advisor Digital Business

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BUSINESS FINLAND IN EUROPE CENTRAL & EAST

1.4.2019 KIRSI-MAARIT POLJATSCHENKO

Commercial Counsellor, Head of Region, Central & East Europe Logistics and Transportation

E

ZOFIA STELMASZCZYK

Senior Advisor

GOL Energy

PIOTR HAJDECKI

Senior Advisor Digitalization

AGNIESZKA WROBEL

Advisor Health & Wellbeing

NILÜFER ALAPINAR

Senior Advisor Bioeconomy

PELIN GÖKÇEK

Senior Advisor Cleantech

TALHA DAYI

Advisor Digitalization

ZHANIYA ADILBEK

Trade Commissioner Bioeconomy and Circular Economy

NINA SULIMOVA

Junior Advisor Administration

OLGA MAKEEVA

Senior Advisor Health & Wellbeing

KAREN GRIGORYAN

Head of IIF Russia Invest in Finland

PAVEL CHESHEV

Senior Advisor Health & Wellbeing Innovation collaboration

RENATA AKZHIGITOVA

Advisor Travel & Tourism Visit Finland

EXPORT EXPORT EXPORT EXPORT EXPORT EXPORT EXPORT ADMIN VISIT INVEST IN INVEST IN

INNOVATION

Services

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CLEANTECH – CURRENT ISSUES

New Energy Policy of Poland draft under discussion now

• Changes in fuel mix, nuclear projects

coming up

• RES and W2E
• Cogeneration / energy effciency / energy

storage

78% 73% 62% 46% 32% 16% 19% 28% 28% 34% 6% 9% 10% 16% 16% 10% 18%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2020 2025 2030 2035 2040

Forecast share of fuels in production of electric energy

Coal Renewables Gas Nuclear

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CLEANTECH – CURRENT ISSUES

Solid waste management

• 12 mln t of municipal solid waste / year
• Too much of landfilling – way to go!
• Poland will not make the EU targets for

recycling for 2020

• Selective collection development

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CLEANTECH TOPICS PROMOTED FOR COMPANIES IN 2018 AND PLANS FOR 2019

Energy efficiency in construction - smart building/ smart construction and BIM District heating – Poland as one of the top DH markets in EU Plans for nearest future

• Under umbrella topic Clean Air - Indoor Clean Air
• Smart Grids and storage/smart cities

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HALTHCARE IN POLAND QUICK FACTS

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Potential business figures on Polish healthcare system in 5 years:

• 1. Polish Healthcare system is under a transition phase due to its legislative changes and EU

support.

• 2. By 2024 health spending is estimated to increase by an additional EUR 4 bn.
• 3. Poland decided to increase healthcare spending from current 4,7% of GDP up to 6% of GDP

2024.

• 4. The public sector is prioritizing to raise overall standard of the healthcare infrastructure and

to eliminate operational inefficiencies in care provisions.

• 5. EUR 3bn will be invested in healthcare sector within 2014-2020 financial framework.

HEALTHCARE IN POLAND IN 5 YEARS

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• The public sector prioritizes raising the standard of healthcare infrastructure and elimination of
• perational inefficiencies in care provisions. Oncology and cardiology as also the strategic

fields.

• Cancer Diagnosis and Treatment Card was implemented as the first step towards diagnosis and

treatment under the Oncology Package Program. A new legislation was implemented to improve the diagnostic and oncological treatment for patients.

• The innovative oncology and radiotherapy centers constructions and technology developments

are bringing in new possibilities. Patient diagnosis and radiotherapy improvement are the areas

• f development. By 2025 an increase of 16% in the need for radiotherapy is expected.

POTENTIAL FOR INNOVATIVE THERAPY, DIAGNOSTIC AND PREVENTION HELATH-TECH

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• What change has opened up this opportunity? Investments for improvement the therapies,

diagnosis and epidemiology prevention for patients stimulate Polish healthcare market.

• Volume of demand: By 2023 medical imaging market will represent an average annual growth of

6% in Poland. This market is expected to reach 7.4 billion PLN (€ 1.7 billion) by 2023.

• Which offerings are relevant to this opportunity? There is a clear demand for diagnostic

equipment, innovative therapy, diagnostic and prevention, cardiovascular and oncology treatment, patient monitoring, infection preventative products and technologies that reduce hospitalization

• time. Also radiography and medical ultrasound and most expensive technologies (MRI, CT scan,

nuclear medicine) are in the need.

POTENTIAL FOR INNOVATIVE THERAPY, DIAGNOSTIC AND PREVENTION HELATH-TECH

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What is planned this year? Webinars and individual meetings with Key Customers in Poland (private and public hospitals) are planned for Finnish

• companies. Business Finland in Warsaw continues to build the

network with Polish healthcare providers to find cooperation possibilities for Finnish companies.

POTENTIAL FOR INNOVATIVE THERAPY, DIAGNOSTIC AND PREVENTION HELATH-TECH

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SUPPLY HOSPITAL TECHNOLOGIES, CONSTRUCTION MATERIALS AND EQUIPMENT TO LATVIA

What change has opened up this opportunity? State support program “To improve health care service accessibility in Latvia” has been

• developed. Financing involving EU funds and national co-financing is allocated for 13 hospital

modernization projects. Volume of demand: Latvia State support program 174M€, 134.8M€ by EU funds, 39.1M€ national

• input. 12 regional and local hospitals 82.99 M€ .

Which offerings are relevant to this opportunity? Hospital infrastructure modernization projects require: Specific products, materials, technologies for hospital construction and modernization. Hospital equipment for different sectors such as oncology, cardiology, hemodialysis , surgery.

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KIITOS THANK YOU

1.4.2019