THE ECONOMIC IMPACT OF HUAWEI IN POLAND NOVEMBER 2020 The economic impact of Huawei in Poland
POLAND Direct Indirect HUAWEI’S ECONOMIC IMPACT IN 2019 Induced Total Totals may not sum due to rounding. SPENDING WITH POLISH SUPPLIERS:
€116 million
CONTRIBUTION TO GDP EMPLOYMENT €95 800 million jobs
€125 4,300 million jobs
€126 4,600 million jobs
€347 million 9,700 jobs 0.1% of Poland’s total GDP 0.1% of Poland’s total employment
TAX REVENUES
€175 million 0.1% of Poland’s total tax revenue
HUAWEI’S ECONOMIC IMPACT BETWEEN 2015 AND 2019 All figures are annual averages (monetary values in 2019 prices)
Spend with Polish suppliers: Contribution to GDP:
€74 million €263 million
Employment:
7, 200 jobs
Tax revenues: Real growth in tax revenues 2015-2019:
135% €119 million
2 The economic impact of Huawei in Poland
THE ECONOMIC IMPACT OF HUAWEI IN POLAND Huawei expanded its HUAWEI’S ECONOMIC CONTRIBUTION operations to Poland in 2017, with its representative office Huawei’s contribution to the • In addition, Huawei and the based in Warsaw. Huawei’s Polish economy is captured firms in its supply chain products and services reach through three channels: pay their staff wages. millions of local people, These wage payments Huawei’s direct contribution working alongside providers • are spent on goods and is generated through its own including P4, Orange, T-Mobile services at retail, leisure and operations in Poland, as well and Polkomtel. Huawei has other outlets, stimulating as the direct hiring of Polish made a sizeable contribution additional gross value staff and direct tax payments to the Polish economy over added (GVA), employment to the Polish government. the last five years, through and taxes through Huawei’s its local operations and its • In conducting its operations, induced contribution. procurement from Polish- Huawei purchases inputs based suppliers. of goods and services In 2019, Huawei made a direct from Polish suppliers. This GVA contribution to Polish Huawei commissioned Oxford procurement supports GDP of €94.9 million, up Economics to investigate economic activity, jobs from €44.7 million in 2015— and quantify its economic and taxation further along equivalent to average annual contribution to Europe in 2019. its local supply chain. This growth of 20.7%.1 In making This summary report details activity along the supply this direct GVA contribution the contribution the company chain is known as the firm’s in 2019, Huawei spent €115.8 made in Poland. indirect contribution. million on inputs from Polish suppliers (see Fig. 1 below); this was 1.4% of Huawei’s Fig. 1: Huawei’s procurement from Polish suppliers, 2015-2019 procurement in Europe.2 m ll on pr es Huawei’s procurement in Poland has increased significantly over the last five years—up from €25.1 million in 2015. This increase is 115.8 equivalent to average growth 108.3 of 46.5% per year between 2015 and 2019. Huawei’s procurement stimulated a €125.5 million GVA contribution along its 59.2 59.6 Polish supply chain (its indirect impact) in 2019. This is a 27.2% average annual rise from the 25.1 €47.9 million in 2015. The majority of this contribution (€51.0 million or 40.6%) was stimulated in the manufacturing ou ce Huawei industry (see Fig. 2).
1 All figures throughout this report are presented in 2019 prices and comparisons are measured in real terms. 2 More specifically, the twelve countries in which Huawei conducts most of its procurement within Europe. 3 The economic impact of Huawei in Poland
Fig. 2: Huawei’s indirect and induced contribution to Poland’s GDP by industry, 2019 m ll on nduced P Total Induced GVA: €126.1 million 77.9 ndi ect P Total Indirect GVA: €125.5 million 26.9 60.1 56.0