We believe the production weakness is temporary. The investment impulse, associated with EU funds, is gradually gaining momentum. This year, beneficiaries will receive approximately PLN20bn from the Recovery and Resilience Fund (RRF), and around PLN60bn plus structural funds in 2025. This should also stimulate private investments, which have been subdued in recent years. Additionally, the German automotive industry showed some signs of recovery in August and continued improving in September.
The German economy faces significant structural problems, so we do not expect substantial support from this direction. To avoid industrial stagnation, as experienced by Germany and the Czech Republic, domestic growth factors are crucial. Poland has the opportunity to avoid the stagnation seen in neighbouring countries, as it possesses growth factors that can stimulate domestic demand. Besides strong consumption, we anticipate a revival of public investments and a boost to private investments through multiplier effects. Poland is just beginning to spend EU funds and has its peak ahead, while other countries are somewhat more advanced in the process. Overall, the third quarter was poor for the domestic industry, but we count on improvement ahead.