Average market risk premium in Poland 2011-2023
Greece and Ukraine with highest MRP in Europe
In 2022, Poland was relatively well placed for average market risk premiums in Europe, compared to other countries. Countries with the highest MRP, and therefore of the highest investment risk included Ukraine and Russia. At the other end of the scale was Finland, Poland, and Germany, reaching from 5.6 to 5.7 percent. Ukraine risk premiums averaged at 34 percent in 2022.
Risk free rates
Risk free rates are closely associated to market risk premiums and measure the rate of return on an investment with no risk. As there is no risk associated, the rate of return is lower than that of an MRP. Average risk free rates across Europe (except for Turkey and Ukraine) were relatively low in 2022. The risk-free rate of investment in Poland was four percent as of 2022.