IMF Report about Poland

On July 26 in Washington, the International Monetary Fund published a report assessing the Polish economy. It is much more positive than the previous ones. In IMF analysts' opinion, short-time prospects for the Polish economy are bright. Such a high economic growth rate requires more attention to be paid for combating unemployment and accelerating the investment rate. The IMF predicts that taking the Prime Minister's office by Marek Belka augurs well for the future and should both help in stabilizing the economy and taking full advantage of Poland's membership in the European Union. It will also allow Poland to join the euro zone towards the end of this decade. EU membership - in the opinion of the authors of the report - should help Poland prepare an ambitious budget and fresh reforms. Higher revenues obtained thanks to the dynamic economic development should be used for cutting down government debt. The report gives a very positive assessment of the planned reforms prepared by Deputy Prime Minister Jerzy Hausner. In the opinion of IMF, the plan is essential for launching a reform of public finances.

Start of Enormous Investment Program

Poland has received the first 240 million euro from EU structural funds. In a couple of weeks the construction of sewage treatment plants, motorways, modern dairies and meat processing plans will start. This year, Poland will receive from Brussels four times more money than in 2003. By the end of 2006, we shall be able to use 72 billion zlotys, three-fourth of which from the EU budget. Starting from August 2, Polish fishermen can apply for help for breaking their old fish cutters. Two weeks later, farmers will start filing applications for support for the modernization of their holdings. Each farmer can count even on 300,000 zlotys. At least 100,000 farmers are interested in that form of aid. Work on the completion from structural funds of the Berlin-Warsaw and Berlin-Krakow motorways will start at the turn of August. Ready are also applications for major investment projects in the field of environment protection. Modern sewerage systems in the Silesian towns of Tychy, Bytom and Zabrze will be built.

Good Times for Exporters

Good results of the Polish economy in 2004 are largely due to export whose value went up 19 percent in five months, when Polish companies sold abroad goods worth 22.2 billion euro. This, to a considerable degree, was an effect of Poland's accession to the European Union, because in April and May export grew faster than in the first three months of 2004. The biggest growth occurred in the sale of Polish food: beef, milk and dairy products.

            Construction of New Motorway Section

On June 28, representatives of tender-winning companies signed agreements with the Polish Roads Authority for the construction of five sections of the A2 motorway (from Konin to Kolo, from Kolo to Dabie, from Dabie to Wartkowice, from Wartkowice to Emilia and from Emilia to Strykow near Lodz), more than 100 km in all. The joint value of contracts for those sections amounts to almost 325 million euro. The Emilia-Warsaw (Konotopy) and Poznan-Swiecko sections are to be ready in 2008. In this way, Warsaw will receive a 453 km-long connection with the German motorway network. The construction of the section of A2 from Warsaw to the eastern border will start in 2008 to be concluded in 2013. The European Union will bear lion's share of the construction costs. The Cohesion Fund will finance 85 percent of the construction of Konin-Kolo, Kolo-Dabie, Dabie-Wartkowice, Wartkowice- Emilia sections and ISPA will supply three-fourth of money for the Emilia-Strykow section. The rest of the loan will come from the European Investment Bank. According to the Polish Roads Authority, one kilometer of the A2 will generate 15 workplaces connected with construction, four - with exploitation and 85 connected with the area adjacent to the motorway.

            2005 Budget: Preliminary Limits

On July 27, the Polish government adopted the preliminary limits of budget spending in 2005 and the principles of its allocation. In 2005, budgetary deficit should drop to 38.8 billion zlotys from 45.3 billion planned for 2004 with revenues totaling 168.4 billion zlotys. The government estimates that the economic growth in 2005 will reach five percent of the GNP and the year-on-year inflation will amount to 2.8 percent, expenditures and subsidies will constitute 87 percent of the 2004 spending and with low inflation there will be no valorization of old age and disability pensions and premiums paid to international organizations (excluding EU) will be retained on the 2004 level.

Accuromm CE will build a new factory in Jelcz-Laskowice

Accuromm Central Europe, Japanese tools manufacturer owned by FUJI Seiko Group, will invest PLN 11 million in constructing a new production facility in Jelcz-Laskowice in Walbrzych Special Economic Zone "Invest-Park (Lower Silesia)". The new factory, which is to be opened by the end of 2005, will employ 40 people. The plant will manufacture tooling for engines and gearboxes. The list of the largest clients of Accuromm CE includes Delphi, DaimlerChrysler, General Motors and Toyota Motor Manufacturing.

Roeben continues investments in Poland

Leading German ceramics manufacturer Roben Tonbaustoffe GmbH will build its third plant in Poland in Sroda Slaska near Wroclaw. The estimated cost of the investment amounts to € 35 million. It will create 120 new jobs. Roeben has 8 factories in Germany and 15 in Europe and America. Roeben Ceramika Budowlana, its Polish branch, specialize in producing clinker bricks and ceramic tiles. Its products are exported to Germany, Scandinavia, Eastern markets (Russia, Ukraine, Belarus, Baltic states), the Czech Republic, Hungary and Slovakia.

German Man and Swiss Biella invest in Starachowice Special Economic Zone

In February 2004 company decided to invest additional € 6 million and create 100 jobs the plant of Man Star Trucks & Busses, Polish manufacturing subsidiary of German MAN Nutzfahrzeuge Gruppe. German manufacturer of buses and bus bodies has two factories in Poland, the second one located in Sady near Poznan. Its total employment in Poland amounts to about 2,200. Another foreign investor in Starachowice SEZ is a well-known Swiss manufacturer of office supplies Biella-Neher AG. Company will build a € 1.4 miliion factory in Szydlowiec subzone of Starachowice SEZ with the planned employment of 30. The production will start in the first half of 2005.

        Outsourcing and Investment opportunities in Poland

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