Poland – the European growth engine
The growth story of Poland is impressive. 20 years ago, unemployment was near 20% but today it is second lowest in the EU. During the last decade the average salary has doubled and now crossed 2000€ monthly level. In terms of wealth, Poland has reached the level of Spain and Portugal and in the some scenarios will reach the UK by the of this decade. During the economic crises, Poland has showed its strength by recovering faster than most of the others.
Today, Poland is not a cheap country, and companies are not investing into Poland mainly because of cheap labor. The factors behind investments are skilled and big labor pool, well developed infra, location, attractive investment programs, big domestic market and in general dynamic business environment and stable conditions. It has become the powerhouse of the EU and a role model when we speak about the economic growth and modernization of the economy and society.
Finnish companies have found Poland, but we come behind Sweden and Denmark. Over 250 Finnish companies have a local subsidiary and another at least 250 companies operate in Poland via sales partners or by doing a cross-border trade. 9 Finnish companies employ more than 1000 people in Poland and nearly 20 make more than 100m€ annual turnover. During this decade, only couple of new factories have been established but many production companies have expanded their already existing production in Poland. Every year, there are few acquisitions by Finnish companies in Poland, but it is worth to realize that Polish companies have also started shopping abroad, including in the Finnish market.
Finland has a very good image in Poland – we don’t have any historical clashes and Finns are seen as modern and trustworthy people. In business culture there are some differences, for example Poles are more formal and the level of trust is lower in the beginning, but in general we both are very pragmatic and straightforward people that like to get things done.
Entering the Polish market is relatively easy and straightforward when we talk about establishing a new entity, production or hiring people. But, making success in sales requires more effort. Despite of the closing gap in prices and costs, the Polish market tend still to be very price sensitive and the competition is harsh - international brands are often there already and the local companies can be surprisingly tough as a competitors. Poland is a huge market, so it is important to identify well the market pocket and get to know the soul of the local buyer. This can be done only by coming over and meeting potential local clients, partners and other specialists. Success takes time and effort, but persistent work will be rewarded.
Poland is a country of 40 million people in the Middle-Europe. Poland will be growing faster than the EU average also during the next decades. It is worth and wise to be in Poland or planning to do so.
Tuomas Asunmaa
CEO, Spondeo
April 2025
