Poland’s Economy Expands in 2024, But Business Sentiment and Labour Dynamics Show Signs of Unease

Poland’s economy recorded stronger-than-expected growth in 2024, according to revised figures from Statistics Poland (GUS), though recent data on business sentiment and foreign employment suggest that momentum may be slowing as 2025 progresses.

Revised national accounts show that gross domestic product rose by 2.9 percent in real terms in 2024 compared with the previous year, marking a clear improvement from the near stagnation of 2023. Growth was supported primarily by household consumption and public investment, while exports acted as a drag amid a weaker European demand environment. In nominal terms, GDP reached PLN 3.64 trillion. The final quarter of 2024 registered 3.2 percent year-on-year growth, confirming that the economy entered 2025 with solid underlying strength. Economists credit this performance to the resilience of the domestic market and the gradual easing of inflation, which helped restore consumer purchasing power.

The labour market also remained robust, underpinned by a steady inflow of foreign workers. Experimental statistics from GUS show that as of March 2025, over 1.06 million foreigners were working in Poland — a 5.5 percent increase compared with the previous year. This represents a continuation of the upward trend seen since 2022, confirming Poland’s position as one of Central Europe’s most significant labour destinations. While updated figures for April have not yet been published, economists expect that the number has remained above one million. The reliance on foreign labour continues to play a stabilising role for sectors facing domestic labour shortages, particularly in manufacturing, logistics, construction, and services.

Despite the encouraging macroeconomic data, business sentiment weakened toward the end of the summer. The latest regional business tendency survey from Statistics Poland, covering September 2025, indicates that companies across Poland are growing more cautious. Firms in manufacturing and construction reported concerns over rising costs, regulatory uncertainty, and reduced order volumes. Although consumer sentiment showed modest improvement in September, business expectations for future demand remain restrained. Many companies have slowed hiring or delayed investment decisions while awaiting clearer economic signals from European markets.

The combination of solid past growth and emerging caution highlights the complex environment Poland faces entering 2026. Strong domestic consumption and public investment have offset weaker external demand, but export-oriented sectors remain vulnerable to the slowdown in the euro area. Dependence on foreign workers, while a strength in maintaining production, also exposes the economy to regional migration trends and labour policy shifts.

Overall, the data suggest that Poland remains one of the more resilient economies in Central Europe, but sustaining growth will depend on improving productivity, strengthening business confidence, and maintaining labour market flexibility. Further clarity is expected in coming months as new employment and sentiment figures are released, offering a clearer view of whether Poland’s growth trajectory will continue or begin to level off in the face of a cooling European economy.

Source: GUS

Czech Construction Expands, But Prague’s Housing Supply Still Stagnates

The Czech construction sector recorded strong growth in August, marking its tenth consecutive month of expansion, according to data released by the Czech Statistical Office (ČSÚ). Overall construction output rose by 17.1 percent year-on-year, driven mainly by civil engineering and infrastructure projects.

However, while the national trend shows clear recovery, the housing situation in Prague remains critical. Despite sustained demand, the number of newly permitted residential projects in the capital continues to lag far behind needs. Preliminary regional data and industry assessments suggest that Prague’s monthly housing approvals remain at a fraction of the level required to meet market demand — a pattern that continues to undermine affordability and availability.

Analysts note that Prague requires at least 10,000 new apartments annually to stabilise prices and reduce pressure on the rental market. In practice, however, only a few thousand are permitted each year, and administrative bottlenecks continue to delay many developments. Recent reports by the Initiative for Affordable Housing (IDB) warn that without systemic reform of the approval process, affordability will worsen further in coming years.

Industry experts emphasise that accelerating and simplifying building permits remains key. The implementation of a fully digitised, unified permitting system under the revised Building Act, combined with enforceable deadlines, could help replicate the progress seen in the Transport and Energy Construction Authority (DESÚ), which has significantly shortened approval times for infrastructure projects.

Advocates for reform, including the IDB, have proposed a comprehensive framework combining simplified permitting, improved spatial planning, and large-scale development of affordable public rental housing using modern Design–Build methods. They also point to successful local models — such as the new EIB-backed affordable housing initiative in Prague, which will finance over 700 units for public-sector workers — as evidence that targeted partnerships can deliver tangible results.

The ČSÚ’s August data confirm a national rise in building activity, with 2,757 new dwellings started and 3,033 completed across the country. Yet in the capital, where more than 1.4 million people now live, the pace of residential construction remains far too slow to meet population growth.

Without structural reform, Prague risks deepening its housing crisis even as the national construction sector shows signs of strength. Experts warn that continued stagnation in approvals could soon translate into even higher prices, reduced labour mobility, and broader social challenges.

Prague Launches Tender for New Tram Line to Strahov Valued at Over CZK 1 Billion

The City of Prague has begun the tender process for the construction of a new tram connection between Malovanka and Strahov, a project estimated to cost just over CZK 1 billion. The investment is one of the capital’s key transport priorities and aims to improve access to the Strahov university dormitories and the area around the historic stadium.

The proposed double-track line will cover a distance of approximately 1.3 kilometres, starting from Bělohorská Street, continuing along Vaníčková Street, and terminating in a loop at Stadion Strahov near the existing bus terminus. The project will also include the reconstruction of sections of Bělohorská and Vaníčková streets, with upgrades to public space, utilities, and traffic organisation.

According to Prague’s public transport company (DPP), construction is planned to begin in spring 2026 and take about 18 months to complete, with the new line expected to open in autumn 2027. Once operational, it will replace several bus routes currently serving Strahov, providing a higher-capacity and fully electric mode of transport linking the area with the Dejvická metro station and other parts of the city.

Transport officials say the project is part of a broader effort to modernise Prague’s public transport network and extend tram services to under-served districts. In recent years, new lines have been completed in Pankrác, Libuš, Dědina, and Slivence, while additional routes are being prepared for construction in Žižkov and Nové Dvory.

The Strahov project also carries local urban-planning importance. Alongside improved mobility, the new line will contribute to the long-term regeneration of the surrounding neighbourhood, which includes student housing, sports facilities, and a proposed redevelopment of the Strahov Stadium.

City planners describe the investment as a step toward more efficient, low-emission public transport across Prague’s hilly western districts, strengthening connections between residential areas, campuses, and major infrastructure nodes.

Source: CTK

MLP Group Appoints Radosław Grzejdak as Project Management Director

MLP Group has announced the appointment of Radosław Grzejdak as its new Project Management Director, as part of the company’s ongoing effort to strengthen its project delivery capabilities and support growth in the Polish market.

In his new role, Grzejdak will oversee the execution of the Group’s development projects in Poland and coordinate the work of project managers across the company’s portfolio.

Grzejdak brings over two decades of experience in real estate development, with a background spanning warehouse, residential, and mixed-use projects. His professional expertise covers all stages of investment management, including planning, due diligence, budgeting, and supervision of construction processes.

Prior to joining MLP Group, he served as Regional Project Management Director at Panattoni Development Europe, where he managed a team responsible for projects in central Poland. He has also worked with Dom Development, Layetana Real Estate, and Batipont Immobilier (CFE Group), where he led various large-scale developments. Earlier in his career, he worked at CB Richard Ellis as a Property Advisor and Project Manager.

A graduate of the Warsaw University of Technology’s Faculty of Civil Engineering, Grzejdak also holds an MBA from the Polish Academy of Sciences and has completed postgraduate studies in real estate consultancy and valuation.

Agnieszka Góźdź, Member of the Management Board and Chief Development Officer at MLP Group, said that Grzejdak’s appointment will further strengthen the company’s project management team. “His broad experience in overseeing complex investment processes will support the implementation of our ongoing projects and contribute to the Group’s development in Poland and abroad,” she said.

Before joining MLP Group, Grzejdak was involved in the preparation of a major healthcare investment for the State Medical Institute of the Ministry of Interior and Administration (MSWiA) valued at approximately PLN 1.5 billion. At MLP, he will focus on ensuring project efficiency, maintaining high technical standards, and supporting the company’s long-term investment strategy.

Garbe Industrial Secures Three New Tenants at Duisburg Multi-User Park

Garbe Industrial Real Estate has signed lease agreements with three companies for its newly developed multi-user park in Duisburg, strengthening the appeal of the site as a logistics and industrial hub.

A Chinese company has leased the entire 14,000-square-metre logistics hall, while Annings Industrial Solutions and the Duisburg branch of Actemium will each occupy separate units in two adjoining industrial buildings. The three structures together offer nearly 29,500 square metres of usable space on the redeveloped 56,000-square-metre “Zeus site” in the Meiderich district — a former industrial area that has now been converted into a modern business park.

The project was jointly developed by Garbe Industrial and Bremer Project Development, with a total investment of around €50 million. “These leases confirm our decision to develop in prime locations even without pre-commitments,” said Frank Soppa, Regional Manager for Project Development West at Garbe Industrial. “By revitalising this long-unused brownfield site, we have created long-term value for Duisburg and new opportunities for the logistics and industrial sectors.”

The new tenant for the logistics hall, a Chinese company specialising in warehousing and distribution, will use the building for logistics operations supporting trade between Europe and Asia. The lease was arranged by Sinoah Immobilien of Düsseldorf.

Two other tenants will occupy the newly constructed business park units. Annings Industrial Solutions, which focuses on freight forwarding between Europe and Asia, has taken approximately 1,800 square metres to expand its existing operations at the Port of Duisburg. “Duisburg is one of the key European gateways for rail freight along the New Silk Road,” said Shaoting Fan, Managing Director of Annings Industrial Solutions. “This new facility will allow us to increase capacity and strengthen our presence in the region.” The deal was brokered by Eureal Property Advisors.

The second new tenant, Actemium Duisburg, will occupy around 1,800 square metres, including 1,400 square metres of hall space used for storage, handling, and light assembly. The company provides industrial automation and electrical services across the full lifecycle of industrial plants.

The two business park blocks together provide 14,500 square metres of hall and mezzanine space and 1,500 square metres of office area. Units can be subdivided according to tenant needs, and discussions with other potential occupiers are ongoing. The site includes 26 dock levellers, 11 ground-level sectional doors, and parking for 217 cars and 10 trucks, several with electric charging points.

Sustainability was a central focus of the project. The buildings are powered in part by a photovoltaic system comprising 6,380 modules with a peak output of 2.65 MW, and they are heated using heat pumps rather than fossil fuels. Parts of the façade feature timber cladding, and the developers are targeting DGNB Gold certification for sustainable construction.

Located about three kilometres from the Port of Duisburg, the world’s largest inland port, the multi-user park benefits from direct connections to major motorways including the A59, A42, and A3, providing fast access to the wider Rhine-Ruhr logistics corridor.

With construction now complete and leasing activity accelerating, Garbe Industrial’s Duisburg project illustrates how former industrial land can be successfully redeveloped into modern, energy-efficient commercial property — reinforcing Duisburg’s role as a central logistics hub for Europe.

Mendota Invest Commissions STRABAG to Build Southern Section of Emonika in Ljubljana

The Emonika development in the centre of Ljubljana has taken another major step forward after investor Mendota Invest, part of Hungary’s OTP Group, confirmed it has signed a new construction contract with STRABAG for the southern part of the mixed-use project. The agreement, valued at around €134 million, covers what is considered the most complex phase of the large-scale redevelopment near the capital’s main railway station.

The southern section will include a 100-metre office tower, a shopping centre, a hotel and several levels of underground parking. Building work is due to begin this month, with completion planned for late 2027. Once finished, the tower will become Slovenia’s tallest office building, transforming the city’s skyline and anchoring a new urban district beside the station.

Plans call for the office tower to reach 23 floors, with the lower levels connecting to a 22,000 m² retail centre containing more than 80 shops and food outlets. A 200-room hotel will sit above the commercial area and feature a rooftop terrace overlooking the city. Beneath the complex, four levels of parking will accommodate about 850 cars for office tenants, shoppers, and hotel guests.

This latest deal follows STRABAG’s appointment earlier in the year to build the northern section of Emonika, which is already under construction. That phase includes new residential buildings, a smaller office block, a hotel, and underground parking. With both contracts combined, STRABAG’s total involvement in the project now exceeds €230 million, confirming its role as the main contractor for the entire complex.

Representatives from both companies welcomed the agreement. Mendota Invest’s Managing Director Pál Forgács said the new phase “represents confidence in Ljubljana’s future and marks a key milestone in creating a modern urban centre for the next generation.” STRABAG board member Péter Glöckler described the development as “a flagship project that blends urban living, transport and sustainability.”

The southern section is being designed with BREEAM-level sustainability features, including energy-efficient systems, heat pumps, and low-emission construction materials. These technologies are intended to ensure lower operational energy use and long-term environmental performance.

When complete, Emonika will encompass about 190,000 m² of total floor space, combining housing, offices, retail and hospitality in a single interconnected site. The project has been years in planning, with permits secured in 2024 and construction now progressing on both its residential and commercial components.

Located at one of the busiest transport hubs in Slovenia, Emonika is expected to become a new landmark in the capital, reflecting Ljubljana’s shift toward modern mixed-use development and a stronger connection between business, retail, and urban mobility.

OpenAI’s Trillion-Dollar Expansion Sparks Debate Over the Future of Artificial Intelligence

OpenAI, the company behind ChatGPT, has embarked on an unprecedented spending spree that has stunned both Silicon Valley and Wall Street. Deals signed in recent months with major technology partners have pushed the total value of its computing and infrastructure commitments to more than USD 1 trillion, signalling a new phase in the global race to dominate artificial intelligence.

At the centre of this expansion is OpenAI’s plan to secure enough processing power to develop the next generation of its language models. The company, led by chief executive Sam Altman, has entered long-term partnerships with chipmakers, cloud providers, and energy firms in an effort to build a global network capable of supporting ever larger and more sophisticated AI systems.

One of the largest agreements involves AMD, which will supply OpenAI with advanced chips beginning in 2026 under a deal valued in the hundreds of billions of dollars. The company has also deepened its collaboration with Nvidia, a key supplier of AI processors, and signed an extensive cloud-services contract with Oracle, worth hundreds of billions more. Together, these partnerships form part of a project known internally as Stargate — an effort to create a vast computing infrastructure dedicated solely to artificial intelligence research and deployment.

OpenAI’s leadership argues that this approach is essential to keep pace with the growing complexity of machine-learning models. As each new generation of AI requires exponentially more computing power, securing long-term access to hardware and energy is seen as critical to maintaining progress. Supporters within the industry describe it as the logical next step for a company now operating at the frontiers of technology.

Not everyone agrees. Financial analysts have begun to question whether such enormous spending can be justified, particularly given the company’s still-uncertain path to profitability. Some see echoes of past tech bubbles, warning that OpenAI may be overextending itself by locking in multibillion-dollar commitments years in advance. Others argue that the move is less about financial return and more about control — ensuring the company has the capacity to develop its technology independently of rivals and external suppliers.

Investors have so far reacted with cautious optimism. The announcements lifted shares of chipmakers and cloud providers tied to the deals, reflecting confidence that demand for AI infrastructure will continue to grow. Yet the sheer size of OpenAI’s commitments has left markets guessing whether the company can balance ambition with financial discipline.

OpenAI’s transformation from a small research organisation into a global technology powerhouse has been swift. Founded in 2015 as a non-profit focused on ethical AI research, it has evolved into one of the most influential companies in the world, producing widely used tools such as ChatGPT and DALL-E. Its close partnership with Microsoft helped bring these technologies into mainstream use, embedding them in software products and cloud platforms used by millions of businesses.

However, the company’s expansion has also revived concerns about governance, transparency, and its original mission to develop AI responsibly. Critics argue that the speed of its commercial growth has outpaced its internal safeguards. Former employees and researchers have warned that decisions about deploying advanced AI systems are increasingly being made under competitive and financial pressure.

Governments are watching closely. In Europe, regulators are assessing whether OpenAI’s growing influence could distort competition in the emerging AI market. In the United States, lawmakers are discussing how to manage the concentration of computing power among a handful of technology firms. The debate reflects a wider question about who should control the infrastructure that underpins future generations of artificial intelligence.

Despite these uncertainties, OpenAI’s leadership remains confident. Altman has described the company’s approach as a long-term investment in the foundation of intelligence itself — a bid to ensure that progress in AI continues even as hardware and energy constraints become more severe.

For supporters, the trillion-dollar project represents a bold attempt to shape the future rather than wait for it. For critics, it is an extraordinary gamble that could test the limits of technological ambition and financial endurance. Either way, OpenAI’s latest move confirms what many already suspected: the race to define the age of artificial intelligence has entered a new, far more expensive chapter.

CTP Names Ivanka Ivanova as Managing Director for Bulgaria

CTP has appointed Ivanka Ivanova as Managing Director for Bulgaria, reinforcing the company’s regional growth strategy across Central and Eastern Europe.

Ivanova will oversee CTP’s expanding operations in Bulgaria, focusing on portfolio growth, tenant relations, and community engagement. Her appointment supports the group’s goal of achieving €1 billion in annualised rental income by 2027, as it continues to build and manage logistics and industrial parks in key Bulgarian markets such as Sofia, Plovdiv, and Varna.

Ivanova brings more than two decades of management experience from the fast-moving consumer goods and logistics sectors. Before joining CTP, she served as Chief Operations Officer and Board Member at Orbico Group, where she led operations across over 20 countries, directed digital transformation initiatives, and managed regional supply chain optimisation. Her previous roles included overseeing warehouse automation projects, integrating operations across multiple markets, and expanding third-party logistics services to generate over €50 million in annual income.

CTP Group CEO Remon Vos said the appointment comes at a time of rising investor and tenant interest in Bulgaria. “Ivanka’s background in leading complex logistics operations makes her well-suited to guide our business as demand grows from multinationals nearshoring to the region. Her strategic perspective and focus on operational efficiency will strengthen our position in Bulgaria,” he said.

In her new role, Ivanova will focus on supporting CTP’s international clients and improving operational efficiency across their European supply chains. She described Bulgaria as a market “full of potential” and said she looks forward to building on CTP’s existing presence while creating long-term value for both clients and local communities.

CTP currently operates CTParks in Bulgaria that serve global and regional occupiers, including Lidl, Quehenberger, and DSV. The company continues to invest in the development of modern, energy-efficient industrial space as part of its wider European expansion strategy.

Central Europe Strengthens Corporate Governance but Gaps Persist in Oversight and Sustainability

The OECD’s Corporate Governance Factbook 2025 finds that while Central and Eastern European countries have made significant progress in aligning corporate governance frameworks with global standards, the region still struggles to ensure consistent enforcement, transparency, and integration of sustainability practices at board level.

The new Factbook, published in September, compares governance systems across 49 economies and serves as a key reference for policy makers, regulators, and investors. It complements the G20/OECD Principles of Corporate Governance, showing how individual countries are putting these principles into practice. According to the OECD, the region’s legal frameworks are now broadly sound, yet a gap remains between policy design and effective oversight.

In the Czech Republic, most listed companies comply with the national corporate governance code and publish annual governance statements. Oversight structures generally meet EU requirements, but independent supervision and sustainability integration remain limited. The OECD notes that Czech boards are still dominated by executive directors, with little formal ESG oversight or board-level diversity. The country’s openness to digital participation—through virtual and hybrid shareholder meetings—marks a clear strength, but it requires continued attention to cybersecurity and procedural transparency.

Poland stands out for its active institutional investors and well-developed governance code introduced by the Warsaw Stock Exchange. Transparency on board composition, remuneration, and risk management has improved, but enforcement remains inconsistent. The OECD observes that sustainability reporting is mostly voluntary and varies in reliability, while coordination between ministries, financial regulators, and the capital markets authority still needs refinement. Institutional investors, particularly pension funds, are emerging as powerful drivers of accountability, yet systemic oversight of ESG remains at an early stage.

Slovakia has largely harmonized its corporate governance framework with EU directives, but practical compliance is uneven. Many firms, especially outside the financial sector, provide limited reporting, and family ownership structures continue to dominate. Independent board members are relatively rare, and minority shareholder rights remain weak. The OECD also highlights that while Slovakia has improved transparency within state-owned enterprises, more progress is needed to guarantee merit-based board appointments and consistent public disclosure.

Romania has made important legal advances since EU accession, with a governance code for listed companies that matches European norms in scope and ambition. Yet enforcement remains one of the weakest points in the region. The OECD notes that companies often meet disclosure obligations formally, but independent board oversight and audit quality are inconsistent. ESG reporting is emerging among larger firms, but smaller issuers have yet to establish systematic transparency. State-owned enterprises remain a particular challenge, with frequent political appointments and unclear separation between government and corporate management.

Across the four countries, the OECD identifies recurring issues: concentrated ownership structures that limit market discipline, weak institutional enforcement capacity, and the slow adoption of sustainability and climate-related risk management in corporate decision-making. While nearly every jurisdiction now maintains a national governance code and aligns with international norms, genuine accountability still depends on how rigorously these rules are applied in practice.

The Factbook also notes a digital transformation in governance, accelerated by the pandemic. Virtual shareholder meetings and electronic disclosure are becoming normal practice, enhancing accessibility but also raising new regulatory concerns about equity, participation, and cybersecurity.

In a regional context, the OECD emphasizes that transparent corporate governance has become not only a matter of compliance but also of competitiveness. Stronger oversight and ESG accountability can attract long-term investment and improve resilience in an era of rapid economic change.

The report concludes that Central European countries have built solid legislative foundations, but the true measure of progress lies in enforcement. For Czechia, Poland, Slovakia, and Romania, the next phase will depend on empowering regulators, professionalizing boards, and embedding sustainability in corporate culture—turning formal compliance into genuine accountability.

Source: OECD

OECD Calls on Governments to Prepare for the Age of Artificial Intelligence

A new policy paper from the Organisation for Economic Cooperation and Development (OECD) is urging governments to act quickly to strengthen their ability to manage artificial intelligence. The report, Governing with Artificial Intelligence, sets out how public institutions can use AI to improve efficiency while preventing the technology from undermining fairness, accountability, or trust.

The OECD’s central message is that governments must be ready not only to regulate AI but also to govern with it. That means understanding how algorithms affect decisions in welfare, healthcare, or education, and ensuring the systems deployed by public agencies remain transparent and open to scrutiny. The report stresses that technical capacity and public oversight should advance at the same pace as innovation.

From guidance to governance

AI now shapes public services in ways that were unthinkable a decade ago — from predicting energy demand to assessing social-benefit claims. The OECD warns that such systems cannot be left unchecked. It calls for flexible oversight frameworks, more expertise inside government, and regular reviews of how AI models operate.

At the same time, the paper acknowledges that strict rules alone will not guarantee progress. Countries are encouraged to support experimentation through “sandbox” environments, where new applications can be tested under supervision before being rolled out more widely.

The goal, according to the OECD, is not to slow down AI development but to ensure it remains consistent with democratic values and human rights. Governments should be able to trace how decisions are made by algorithms, correct errors, and offer citizens the right to challenge automated outcomes.

Connection to the European agenda

The OECD’s proposals arrive as Europe prepares to implement its own AI Act — the first broad legal framework for the technology in the region. Both approaches share an emphasis on risk-based management and transparency, though the OECD’s guidance is designed to be global rather than region-specific.

Brussels is now encouraging member states to set up national testing environments and certification systems for high-risk AI applications, while also building networks of regulators and experts. The OECD’s report complements these efforts by offering a broader playbook that can be adopted by countries outside the EU as well.

Czech Republic: catching up on capacity

In the Czech Republic, the debate over AI has largely focused on industrial and research policy, but public-sector adoption is still in early stages. Analysts say ministries and agencies will need to strengthen their technical teams and develop clearer oversight roles once the EU Act comes into force.

The OECD’s framework could help Czech authorities map out how to coordinate between data-protection officials, competition regulators, and the ministries that already use AI in transport or digital services. It also highlights the importance of citizen engagement — ensuring that residents understand when automated tools influence official decisions.

Poland: balancing speed and safeguards

Poland faces a similar challenge. The country has backed digital-transformation projects across sectors, yet many state agencies lack trained staff to monitor AI use or evaluate vendor systems. Policymakers are also debating how quickly to apply the new EU rules, warning that small firms may struggle with compliance costs.

For Poland, the OECD’s recommendations underline the importance of investing in public-sector skills and building institutions that can audit, test, and explain AI systems. The report also points to the social side of governance — making sure automation does not deepen inequality or restrict access to services.

A call for collective effort

Across Europe, governments are coming to terms with the reality that AI is no longer confined to laboratories or private tech firms. It now forms part of core state functions, from tax administration to environmental monitoring. The OECD argues that without clear governance, these technologies risk eroding the very accountability that democratic institutions are built on.

Its new framework serves as both a warning and a guide: that AI’s promise can only be realised if countries move beyond pilot projects and build the legal, institutional, and ethical foundations to manage it responsibly.