CARPATHIA CAPITAL IN NUMBERS

STABILITY, POTENCY AND DEVELOPMENT

POLAND AS WELL AS ROMANIA BELONGS TO MANY INTERNATIONAL ORGANIZATIONS THAT GUARANTEE CREDIBILITY FOR INVESTORS

Poland and Romania are excellent places for investment and business development, due to political and economic stability, educated staff, a large internal market and the enormous potential and opportunities they offer in their economies. In terms of population, both countries are at the forefront of the European Union.

The membership of Poland and Romania in the EU contributes to the gradual release of huge potential both in terms of production and consumption. In 2016, Polish exports grew by 2.3% and their value reached nearly 184 billion. Euro. Trade with EU countries accounted for almost 80% of this value. For Romania, the total share of EU countries in exports accounts for over 75%. In addition, 90% of foreign direct investment comes from EU member countries. Both countries also belong to the World Trade Organisation and are also members of NATO, which ensures their economic and political stability and security.

ATTRACTIVE CAPITAL MARKETS

DEVELOPED POLISH MARKET AND THE EMERGING ROMANIAN MARKET

On 29 September 2017, FTSE Russell, one of the leading international institutions analyzing capital markets, announced its decision to reclassify Poland from developing to developed markets. This decision will enter into force in September 2018. Thus, Poland will be among the 25 most developed world markets. It is worth mentioning that this is the first time that a country from Central and Eastern Europe has qualified to this group of countries. In 2017, FTSE Russell also decided to include Romania on the watch list for possible retraining as an emerging market, which will allow significant economic benefits to be gained by, inter alia, inflows of foreign capital.

The favourable conditions for the development of SMEs in Poland and Romania are reflected by the number of companies listed on these markets. Poland’s main Warsaw Stock Exchange market lists 482 companies with a total capitalisation of just over EUR 347 billion. The AeRO’s alternative trading system, the platform of the Bucharest Stock Exchange, lists 316 companies with a market capitalisation close to EUR 1.37 billion.

MACROECONOMIC ENVIRONMENT

HIGH AND STABLE GROWTH OF GDP, LOW UNEMPLOYMENT, DECREASING TAXES

The macroeconomic situation of Poland and Romania is among the best in the EU in terms of real GDP growth, budget deficit and public debt, inflationary pressures and current account balance. In 2014-2016, the Polish economy grew at an average rate of 3.33%. According to estimates, the GDP growth rate in the third quarter of 2017 increased to 4.9% y/y. In comparison, the GDP of the euro area and the European Union as a whole increased by 2.6% in Q3 2017. The excellent situation of the Polish economy is also reflected in the level of unemployment. Its rate in Q1 and Q2 2017 was 8.1% and 7.1%, respectively.

Between 2013 and 2016, the Romanian economy grew at an average rate of 3.8%. In Q3 2017, it surprised many economists with 8.8% y/y GDP growth. Romania is also a low unemployment rate – in October 2017 the unemployment rate was 4.9%, reaching a level below the average for all EU countries, i. e. 7.4%.

There are 14 special economic zones in Poland. They offer new investors attractive tax reliefs, easier employment and well-prepared areas for investments. The Romanian Government has reduced the basic VAT rate to 18% from 1 January 2018, the second lowest rate in the EU.