Demand, stability and proximity bring new opportunities for exporters.
Poland is one of the fastest growing economies in the European Union. Green transformation, digitalisation and the ability to tap into European funds make the country an attractive place to invest and do business. Slovak companies have the chance to take advantage of these favourable conditions, but they must also prepare for high competition and market specificities.
Reforms and trends
The Polish business environment is changing. The digitalisation of public administration, the strengthening of innovation and the focus on green transformation are bringing new opportunities for business. Slovak companies can benefit from synergies in technology, energy or property development, while the interpenetration between the two economies is expanding. “Exporters also praise the proximity to the market, the cultural and historical connection, the stability and predictability of the business environment, and the excellent cooperation with local municipalities,” says Tomáš Kuruc, Eximbanka’s director of structured finance. The question is to what extent exporters will be able to take advantage of the fact that Poland is not only a close, but also culturally and historically related partner. For many companies, entering this market may be a logical step before expanding to more distant destinations. The market is also becoming attractive as the Poles are looking for partners capable of contributing to the digitalisation of industry, the development of a green economy and the promotion of renewable resources. This increases the potential for businesses that focus on IT services, energy technologies and industrial development.
Macroeconomic signals
The stability of the Polish economy is one of its greatest strengths. High demand, credibility of customers and currency predictability contribute to market attractiveness. Inflation remains one of the factors that Slovak exporters monitor most closely, but overall conditions are favourable compared to other regions of the Union. Proximity to the market allows businesses to minimise logistics costs, which is a competitive advantage in a period of fluctuating energy prices. A similar business mentality is also advantageous. The interest of exporters is reinforced by the predictability of policy actions in Poland. A stable business environment encourages long-term planning and paves the way for investments with a horizon of several years.
Opportunities and risks
Poland provides a wide range of sectors in which Slovak companies can succeed – development, engineering, electrical industry or automotive subcontracting. Despite the risks, the construction sector has growth potential. Construction of infrastructure, including railways, modern office and residential buildings or the development of logistics parks are areas in which Slovak companies can find stable demand.
Another option is the Polish defence sector. Slovak companies can build on their experience. “Given Poland’s long-term strategy in the field of armaments, we see room especially for companies engaged in the development, production and supply of single-purpose machines or technological lines, which can bring their know-how and build on the historical ties in the defence industry,” emphasises Michal Demák, Eximbanka’s director of non-tradable risk insurance.
Eximbanka’s tools
Financial security of the business is one of the conditions for success in Poland. Eximbanka plays a key role in minimising risks, be it payment discipline or exchange rate volatility. Export credits, guarantees and receivables insurance are instruments that allow entrepreneurs to focus on business, not risk.
In the Polish market, it is mainly used to insure short-term supplier loans and to finance investments through direct lending. These products strengthen the confidence of business partners. Slovak exporters can expand without having to hold high capital reserves. “Polish buyers tend to preferentially pay the claims of Slovak exporters who insure their claims. If the Polish buyer knows that the Slovak company is backed by a strong institution, which Eximbanka is, the Polish buyer rapidly increases its willingness to pay its obligations properly and on time,” adds Martin Schaner, Eximbanka’s director of commercial risk insurance.
Author Tomáš Szmrecsányi