Publication date: March 20, 2025
Slide 1: We invite you to familiarize with most recent overview about statistical and business aspects of US Investments in Europe
Slide 2 : Eurostat
Eurostat is the main source of statistics for the European Union countries. The statistical office is responsible for collecting, analysing and publishing statistical data on the member states. It contains indicators from all thematic areas, presented in the form of dynamic and static tables. It also includes indicators monitoring EU strategies and programmes (e.g. the Europe 2020 strategy). Annual, quarterly and monthly data are available.
It develops statistics in cooperation with statistical offices and other national authorities in the EU Member States – this cooperation is called the European Statistical System. It also includes the authorities of the countries of the European Economic Area and Switzerland.
Slide 3 : On this slide you can see investment opportunities and trends
Europe remains one of the most attractive investment regions in the world. With a stable economy, high levels of innovation and developed infrastructure, the region attracts investors from various sectors. In 2022, Europe accounted for 42% of the world’s outward investment positions.
According to the UN, over one third (35.3%) of global foreign investment was located in Europe (EUR 14.6 trillion), and Europe’s share of global outward investment was over two fifths (42.1%), approximately EUR 15.7 trillion. The European Union and the United States are dominant players in the international investment arena, both as recipients and investors, with China becoming increasingly important, but its share is still smaller than that of Europe and the United States.
Key investment trends include:
Slide 4 :
Trade is an important indicator of Europe’s prosperity and its position in the world. The European Union is deeply integrated into global markets, both in terms of imports and exports. The EU’s trade policy is one of the main pillars of its relations with the rest of the world. The openness of the EU’s trading system makes it a major player on the global trade stage and an attractive region in which to do business. Modern means of transport and communication have made international trade easier, giving European companies – regardless of their size – the opportunity to do business outside Europe.
Figure 1 on this slide shows the long-term trend of trade in goods between the European Union and the United States. The gold line shows the level of exports, it shows an upward trend, especially after 2020 – this indicates the growing value of exports of goods from the EU to the United States. The blue line shows imports, it also grows, but slower than exports. The trade balance is represented by red columns, which remain positive throughout the period, which means that the European Union consistently exports more to the United States than it imports.
The increase in exports after 2021 may be related to the economic recovery after the most difficult period of the COVID-19 pandemic.
Figure 2 shows monthly data for 2022 and 2023. The legend remains the same as in the previous graph. Exports show an overall increase, although there are fluctuations in some months (seasonal fluctuations), while imports show greater fluctuations and are lower. The balance, as in previous years, remains positive.
Slide 5 : On this slide we can see US-Poland Trade Relationship
Poland maintains a relatively balanced trade exchange with the US, with a slight advantage of exports over imports. Exports constitute a larger percentage of trade outside the EU than imports, which means that Poland has found a market for its products in the United States. The value of trade in the Poland-US relationship is not at the highest level when compared to the largest EU economies, but in the CEE region Poland is one of the leaders.
Poland imported goods worth EUR 10,410 million from the United States, which was a 9.4% share of imports from outside the EU. On the other hand, it exported goods worth EUR 11,003 million, which indicates Poland’s positive trade balance with the US.
Slide 6 : Key Trade Sectors
The graph shows EU-US trade by product group for 2013 and 2023, including exports and imports in billions of euros.
The graph clearly shows that both exports and imports between the EU and the US have increased significantly over the decade. Exports to the US have increased significantly more, exceeding €500 billion in 2023, almost doubling compared to 2013. Imports from the US have reached around €350 billion.
In 2023, the EU had surpluses in trade in machinery and beverages, vehicles (€102 billion), chemicals (€58 billion), other manufactured goods (€55 billion) and food and beverages (€16 billion). The EU had deficits in trade in energy (€70 billion) and raw materials (€6 billion) and other goods (€2 billion). The overall balance with the US, after steadily increasing between 2013 and 2021, narrowed in 2022 due to the high deficit recorded for energy products.
The largest share of trade is in machinery and vehicles, which indicates the strong demand from the US for European technology and the automotive industry. Chemicals are also important, given the clear role of the pharmaceutical and chemical industries in transatlantic trade.
The import of natural resources and energy from the US increased significantly at the turn of the decade, which is most likely related to the EU’s desire to become independent from Russia. The trade relationship between Europe and the US has strengthened over the 10 years under review, confirming the importance of the US as a key trading partner for the EU.
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Poland attracts capital from global investment leaders, but much of the funds flow through other countries, which may be due to international tax and corporate strategies.
Poland is an attractive market for foreign direct investors (14th place globally with a share of 2.1% of the global investment inflow), but Polish enterprises are not significant investors abroad (the share in global outflows is below 0.7%).
The chart shows the status of liabilities resulting from foreign direct investments in Poland by country of residence of the direct investor (blue bars) and country of residence of the dominant entity (UIC) (green bars) at the end of 2023.
The largest investors in Poland are Germany and the Netherlands. The United States has a much higher investment value by parent company than by direct investor, which means that American capital often does not go directly to Poland, but first goes through intermediate jurisdictions.
Slide 8 : US Foreign Direct Investment (FDI) in the EU and Poland
Foreign direct investment (FDI) is an investment made by a resident enterprise in an economy (the direct investor or parent enterprise) to establish a lasting interest in a resident enterprise in another economy (the direct investment enterprise). This implies the existence of a long-term relationship between the direct investor and the direct investment enterprise, as well as the ability to exercise some form of control/influence over business decisions. Indeed, this effective say in the management of the foreign enterprise is one of the main differences between FDI and other forms of investment, such as portfolio investment (where the investor does not seek to control the foreign enterprise) or other assets (for example, intellectual property rights).
Some economists argue that, compared with international trade, foreign direct investment (FDI) creates stronger links between economies, facilitating technology transfer and promoting the exchange of know-how. Governments often use economic arguments to attract FDI, assuming that it can support economic growth and job creation.
In 2023, the income of dominant investors based in the Netherlands and Luxembourg was significantly lower than that of direct investors from these countries. The opposite was true for dominant investors from Germany, France, the United States and Portugal. This suggests that residents from these countries use special purpose entities to make investments in Poland.
The United States is one of the key investors in Poland, but the difference between the value of investments according to the seat of the direct investor and the seat of the parent entity indicates that American capital often flows through other countries (e.g. the Netherlands, Luxembourg) before reaching Poland. This may be due to tax optimization and the structure of global holdings, where companies registered e.g. in the Netherlands or Luxembourg act as intermediaries for real American investors. The United States plays a key role in the technology, manufacturing and services sectors.
The highest income from direct investments in Poland was achieved by direct investors from the Netherlands (PLN 37.7 billion), Germany (PLN 22.5 billion) and Luxembourg (PLN 13.4 billion). However, if income were to be attributed to the country where the dominant entity is headquartered, the highest income was recorded by investors from Germany (PLN 26.3 billion), followed by France (PLN 13.0 billion), the United States (PLN 12.3 billion) and the Netherlands and Portugal (PLN 10.9 billion and PLN 8.4 billion, respectively).
Slide 9 : This chart shows income from foreign direct investments in Poland in 2023, broken down by type of economic activity
The largest share of income in 2023 was generated by investments in the manufacturing sector (PLN 43.3 billion, or 31.1% of total income). Slightly over one-fifth of income (PLN 28.1 billion) was attributable to direct investment entities operating in the wholesale and retail trade sector (section G). Income from financial and insurance activities (section K) amounted to PLN 18.5 billion (13.3%), and in the information and communication sector (section J) it amounted to PLN 10.6 billion (7.6% of total income). Considering the types of activities that generated the highest income from foreign investments in Poland in 2023, the highest rate of growth in the share of income of individual sections in total income was recorded in financial and insurance activities (section K), activities related to the generation and supply of electricity, gas, steam and air for air conditioning systems (section D35) and information and communication (section J). These were sections whose revenues did not exceed PLN 20 billion. Sectors that achieved revenues exceeding PLN 20 billion in terms of amount, however, recorded a negative growth rate of the discussed share. They include: industrial processing (section C) and wholesale and retail trade (section G).
Slide 10: This slide shows impact of US investment on the European labor market
The leading location of American company investments in Poland is the Masovian Voivodeship, where almost half of them are located (47%). Apart from the capital voivodeship, other important locations for American capital investments are the following voivodeships: Lesser Poland, Subcarpathia and Greater Poland, where the percentage of American company investments is 11% for the Lesser Poland and Subcarpathia voivodeships and 10% for the Greater Poland voivodeship.
Investments located in these four voivodeships constitute almost 80% of all investments of American companies in Poland.
A report by the American Chamber of Commerce in Poland and the Warsaw School of Economics states that at the end of 2021, more than 327,000 people were employed in companies with American capital .
Employment in companies with American capital in Poland is much less concentrated than the investments themselves. The largest percentage, as one might expect, is located in the Mazowieckie province (38%).
The largest number of people are employed by companies involved in activities related to warehousing and storage (8% of all jobs are in this sector), followed by: the production of other parts and accessories for motor vehicles and software-related activities.
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To conclude, the United States plays a key role as an investor in Europe. Poland serves as one of the most important investment hubs in the region.
Strong trade ties and developed transatlantic relations favor the development of foreign direct investment, which supports the development of innovative economic sectors and international cooperation.
Poland is an attractive place for investors also due to its strategic location in the heart of Europe with access to the sea, which facilitates access to key EU and Eastern European markets. An additional incentive is also the relatively competitive costs of doing business and the dynamically developing infrastructure. This affects the attraction of investors from sectors such as modern technologies or research and development centers.
A stable economic environment and numerous support programs for foreign investors make Poland one of the key points for American companies looking for a suitable place to invest their capital.