This article is a part of Poland Unpacked. Weekly intelligence for decision-makers
Three positive signals for Poland emerge from the latest foreign direct investment attractiveness ranking by EY. There are also several warning signs that merit attention. Let us start with the positives.
First, in 2025, Poland recorded 285 foreign direct investment projects. That is 10 percent more than a year earlier. Among the top 10 countries, only four posted growth, and only one – Turkey – achieved a higher increase than Poland. Across Europe, the number of projects fell by 7 percent.
Interactive chart Good to know
AHK report also positive for Poland
Poland ranks second in the region in investor sentiment, according to a recently published report by the Polish-German Chamber of Industry and Commerce (AHK) and selected chambers belonging to the International Group of Chambers of Commerce (IGCC).
The survey finds that foreign companies operating in Poland have not assessed the country’s economic situation – and their own business conditions – as positively since the pre-pandemic period. As many as 94.5 percent of companies say they would invest in Poland again.
Lithuania came first, while Estonia ranked third. The last time Poland held the top position was in 2023.
The most important factors shaping Poland’s investment attractiveness include EU membership (with 58.4 percent of firms expressing high satisfaction), communications understood as the quality of networks and services (18.4 percent), the quality and availability of subcontractors (14.9 percent), transport and logistics connectivity (16.4 percent), digitalization of public administration (17.9 percent), and workforce qualifications (15.4 percent).
The main sources of dissatisfaction are tax burdens (11.4 percent of respondents expressing strong dissatisfaction), the predictability of economic policy (9.9 percent), the tax system and tax administration (11.4 percent), labor costs (6.4 percent), and labor law flexibility (7 percent).
Strong prospects for Poland and Warsaw
Second, Poland is set to remain attractive to investors this year as well. It was listed among the best countries for investment by 17 percent of 500 respondents in the EY survey. This places it joint sixth, alongside the Netherlands.
Interactive chart Third, Warsaw is among the cities perceived as the most attractive investment destinations in 2026. It climbed 21 places to fifth position, overtaking cities including Amsterdam, Berlin, and Madrid.
Interactive chart “The growing number of investments in Poland is not accidental. It is the result of several overlapping factors: strategic defense spending driven by the geopolitical situation, the development of data center investments, and the continuing trend of nearshoring. An important role is also played by national and EU funds being deployed to support infrastructure development. It is particularly encouraging that this positive trend is visible both at the national and metropolitan levels. The increasingly strong perception of Warsaw as an attractive place to allocate investment capital confirms that Poland is seen as a stable partner – despite the tense geopolitical situation in the region,” said Mateusz Pociask, who will become Managing Partner of EY Poland as of July 1.
Key sectors: AI, defense, and energy
Across Europe, the strongest growth in investment projects was recorded in artificial intelligence, which added 107 projects – an increase of 96 percent. The second fastest-growing sector was defense, with 89 investments, up 84 percent. Low-carbon energy also expanded, with 89 projects, representing a 25 percent increase.
Expert's perspective
“We are shooting ourselves in the foot”
Poland’s entry into the G20 demonstrates that it has very quickly – and without waiting for others – moved into the top tier of global economies. It will not immediately match Germany or France, but 30 years ago no one would have expected Poland to reach this position. The country should capitalize on the momentum built over the past three decades.
At the same time, it is shooting itself in the foot. Instead of agreeing that certain issues – such as security or development – should be kept outside political disputes, investors see governing institutions unable to form a common position on fundamental matters. A state cannot function in a permanent state of crisis.
Investors do not know the direction of future tax policy. They cannot be sure whether legislation proposed by the government will be signed by the president, or vice versa. They will choose a country where conditions may not be better, but are predictable.
The coming years will determine whether Poland takes the next step and secures its place among the global top tier, or falls into stagnation and allows others to overtake it.
“The data show ongoing structural changes. Investment capital is currently shifting toward AI, defense, and low-carbon energy. Projects focused on resilience, technological development, and supply chain security are gaining importance. Although geopolitical tensions continue to negatively affect the scale of investment – and globalization is increasingly giving way to geopolitics – in the longer term Europe remains an attractive destination for investors. Sixty percent of respondents in the EY survey expect Europe’s investment attractiveness to increase over the next three years, which confirms sustained confidence in European economies,” said Jacek Kędzior, Managing Partner of EY Poland and Managing Partner for the Central Europe region.
Unfortunately, the outlook is better for the United States (68 percent of respondents expect its attractiveness to increase) and China (66 percent). This is only the first of several negative signals emerging from the report.
Lack of large-scale projects
In terms of jobs created or planned under projects announced in 2025, Poland ranks seventh. It recorded a 36 percent decline. This is the result of a shortage of large-scale projects. The 12,000 jobs generated is more than twice as low as in the best-performing country in this category, the United Kingdom. Hungary ranks fourth, with 14,200 jobs and a dramatic increase of 249 percent.
Interactive chart “Companies are not withdrawing from our country, although they are showing a tendency to be cautious when it comes to large, one-off capital commitments. Increasingly, they choose to expand existing facilities or pursue smaller-scale projects. This allows them to maintain flexibility in conditions of economic and geopolitical uncertainty. Poland is benefiting from trends such as supply chain shortening and the relocation of production closer to end markets. It is also still supported by relatively competitive labor costs and national and EU funds enabling infrastructure development,” said Mateusz Pociask.
He also offers a prescription for Poland.
“If smaller and less capital-intensive projects dominate, Poland will maintain a stable inflow of investment, but it will be more difficult to achieve another developmental leap. On the other hand, attracting more advanced and capital-intensive investments should help unlock synergies and move the economy into the next phase of growth,” said the future head of EY Poland.
Expert's perspective
Politics rarely determines investment decisions
A classic example was the period of Law and Justice (PiS) government, when the opposition warned that legal security for investors had declined – yet investment continued to flow into Poland at a strong pace. The same applies today: the fact that Poland is a frontline state does not affect investment decisions. The only clear example of political impact on investment has been the sharp tightening of attitudes toward Chinese companies, which have stopped investing in Poland.
Unfortunately, there is now a slowdown in proactive investor outreach. Agencies responsible for investment promotion are acting passively, focusing mainly on servicing investors who already want to invest.
Will Poland manage to make the leap?
It is difficult to speak of a breakthrough when Poland has held sixth place in the ranking for the third consecutive year. Over the past decade, it has occupied this position as many as five times. It ranked higher only once in the last ten years – reaching fifth place in 2017.
Interactive chart Another negative signal: Warsaw is seen as an interesting investment destination, but in the past year it did not make it into the top 15 cities either in terms of project numbers or jobs created. Alongside obvious leaders such as London and Paris, the top 15 also includes three regions in France and two in Turkey.
Further bad news is that investments by German companies in Europe have fallen to their lowest level in a decade (484 projects). Investments by US firms are also at a very low level, with 943 projects in 2025. In peak years, there were nearly 1,500. Germany and the United States have historically been the most significant foreign investors in Poland.
Expert's perspective
How to use G20 membership
Membership in the G20 can help in this transition. However, entry into the elite G20 group – much like accession to the European Union years ago – is not a “golden ticket” that automatically delivers development goals. It is merely entry onto the world’s most important stage, offering vast opportunities but no guarantees without active state policy.
To translate G20 membership into real economic gains, Poland must treat the forum as a roadmap for future expansion. On one hand, it opens the door to attracting capital from less obvious Global South markets such as Mexico, Brazil, or India, which could help expand Poland’s current FDI stock, valued at approximately USD 320 billion.
On the other hand, it requires urgent “homework” domestically, where legislative processes still take far too long.
Key Takeaways
- In 2025, Poland recorded 285 foreign direct investment projects, a 10 percent increase compared with the previous year. This is a strong result by European standards. In the 2026 ranking of the most attractive investment destinations, Poland was named by 17 percent of 500 respondents in the EY survey, placing it joint sixth alongside the Netherlands. Warsaw also features among the most attractive cities for 2026, jumping 21 places to fifth position, ahead of cities such as Amsterdam, Berlin, and Madrid.
- In terms of jobs created or expected to be created by 2025 projects, Poland ranks seventh, with a 36 percent decline. This reflects a shortage of large-scale projects. “If smaller and less capital-intensive projects dominate, Poland will maintain a stable inflow of investment, but it will be more difficult to achieve another development leap. By contrast, attracting more advanced and financially substantial investments should help unlock synergies and move into the next phase of growth,” said Mateusz Pociask, who will become head of EY Poland as of July 1.
- Experts point out that Poland’s image is being undermined by political disputes, slow legislative processes, and a lack of activity from agencies responsible for investment promotion.