Decline in foreign investment has resulted in construciton projects being shelved

The construction market in Poland is being hit by a drop in foreign investment as projects are shelved due to fears of a global recession.

A report by the National Bank of Poland said that foreign investment in the country fell to €8.4bn (£6.2bn) between January and August, compared with €10.7bn (£8.3bn) in the same period in 2007.

Economists predict that the construction and automotive sectors are most likely to feel the effects of the drop, which is expected to worsen next year.

The report comes despite recent figures from research company PMR showing that residential construction output in Poland is expected to double to €5bn (£3.9bn) by 2011.