Government Pension Fund Global, known as GPFG, since the early 90s is investing the surplus from the country’s oil exports on the polish market, which shows the stability of our country.
Currently GPFG assets reach 3.8 billion NOK, or about 2.1 billion PLN. According to the SWF Institute, this makes GPFG the largest investor of its type in the world. A growing portion of its capital this fund invests in Poland. At the end of 2012, the Norwegian pension fund has shares in 50 companies of the Polish Stock Exchange. A year earlier, the fund had shares of 48 Polish companies, and in 2010 of 41 companies. In 2007 the GPFG did not invest in Poland yet. The value of shares of the Polish companies GPFG had at the end of 2012 reached 6.9 billion NOK (3.9 billion PLN counting the average exchange rate of the NOK in 2012) and it is 17.4 percent more than a year earlier.
The experts stated that from the GPFG point of view, the shares of polish companies are very attractive, because the companies operate in a distinctive stability of the macroeconomic environment, and are relatively low-priced. They do not have the growth potential such as Turkish companies, but are much less risky and this convinces Norwegians. GPFG must take care not only about profits, but also about the safety of investments, and from the Norwegian perspective Poland is safer than many other developing countries. Therefore, Poland is an attractive market.
Interest on the part of the Norwegian pension fund is a strong signal to investors and other economies that Poland is still a very attractive investment market. Despite a weak first quarter, Poland will have a chance to rebound relatively quickly, because our main trading partner – Germany, is rebounding currently.
Additionally our national economy considering European conditions is a large and absorptive market driven by a domestic demand. Poland is still perceived as a dynamic economy, where entrepreneurs are flexible and can easily adapt to new economic conditions. Also it should be remembered that after 2014, Poland will receive a further financial support from the European Union, which naturally will lead to increased investment in the energy sector and infrastructure, and such companies are a major percentage of all companies that make up the WIG20 (Warsaw Stock Exchange).