Confidence in Czech economy reaches highest level in nearly three years

Confidence in the Czech Republic’s economy rose again in March, reaching its highest level since May 2022. According to new data released by the Czech Statistical Office (ČSÚ), the overall confidence index increased by 1.7 points compared to February, reaching 99.5. Both business and consumer confidence contributed to the improvement, with business sentiment now at its highest point since July 2022.

Jiří Obst from the ČSÚ noted that business confidence has increased for the third consecutive month, nearing its long-term average. Consumer confidence also saw a positive shift after three months of decline, driven by a reduction in pessimistic expectations about the Czech economy’s outlook over the next year.

The business confidence index rose by 1.6 points to 99.6. The most significant contribution came from expectations of stronger demand in selected service sectors. Across all industries, confidence increased: retail saw the largest jump, up 2.3 points to 102.2, followed by services (up 1.8 to 102.3), industry (up 1.3 to 94.8), and construction (up 1.1 to 115.8).

Consumer confidence climbed by 2.2 points to 98.8. While the number of consumers expecting the economic situation to worsen over the next year decreased slightly, this share remains relatively high. There was a modest decline in households anticipating a deterioration in their financial situation, while assessments of current financial status remained unchanged. The number of respondents avoiding large purchases also fell slightly.

Analysts responded positively to the latest figures, suggesting that the shift in consumer sentiment may help accelerate economic growth this year. Radomír Jáč of Generali Investments highlighted that March marked the first improvement in consumer sentiment since November, though he cautioned about rising price expectations in sectors like construction, retail, and industry.

Dominik Rusinko of ČSOB said the data align with the bank’s expectations of a gradual recovery in the domestic economy. He noted that renewed consumer confidence—combined with rising real wages—should support a rebound in consumer demand, which is expected to be the primary driver of growth in 2025.

Vít Hradil from Cyrrus also saw the data as unusually positive, with improvements reported in every monitored sector. He emphasized that the sentiment index is now approaching the threshold that separates pessimism from optimism, bringing the economy close to what could be described as a broadly positive outlook.

Petr Javůrek, chief analyst at Provident Financial, predicted a continued but modest rise in consumer confidence, likely hovering near its long-term average. He pointed out that the consistent growth in business confidence could suggest that fewer households expect their financial situation to worsen in the near future.

Petr Dufek of Creditas Bank took a more cautious stance, noting that while the data suggest gradual economic improvement, there are no signs of a significant boom. He believes that the first quarter of 2025 will likely see steady growth, supported mainly by consumption and service demand, though overall expectations should remain measured.

Finally, from a monetary policy perspective, the Czech National Bank may view this surge in confidence as a reason to hold off on further rate cuts. Jáč noted that the Bank Board might interpret the survey results as a call for caution at its upcoming meeting on 26 March.

Source: CTK

Up to 900,000 Czechs over 15 drink excessively every day, Report Finds

As many as 900,000 people over the age of 15 in the Czech Republic consume excessive amounts of alcohol daily, according to new data presented in the 2024 national reports on alcohol and drug use. These findings were shared during a press conference by Pavla Chomynová, head of the National Monitoring Centre for Drugs and Addictions. The experts estimate that alcohol consumption costs the country around CZK 80 billion annually—approximately one percent of GDP—and contributes to about six percent of all deaths in the Czech Republic.

The report defines drinking habits across four categories, from abstinent to harmful consumption. Harmful levels, linked to serious health damage, begin at more than 60 grams of ethanol per day for men and over 40 grams for women—equivalent to several beers or multiple servings of wine or spirits. Based on this threshold, around 6 to 10 percent of the adult population, or between 600,000 and 900,000 individuals, consume alcohol at harmful levels. An additional 15 to 18 percent, or up to 1.6 million people, are at risk due to high but not yet harmful alcohol consumption.

Excessive drinking at least once a week affects up to 13 percent of Czech adults—21 percent of men and seven percent of women. Although daily alcohol use dipped during the COVID-19 pandemic, it has been slowly rising again. Researchers also note that Czech society remains tolerant of alcohol use, with three out of ten respondents viewing regular drinking as acceptable, and alcohol being widely and easily available.

The situation among young people is also alarming. Nearly a quarter of 15-year-olds, five percent of 13-year-olds, and a smaller share of 11-year-olds report having been drunk multiple times. In the past month alone, 60 percent of teenagers aged 15 to 19 consumed alcohol, and four percent reported drinking almost daily. Girls, the study finds, are beginning to match boys in drinking frequency and intensity.

Alcohol is linked to the deaths of 6,000 to 7,000 people annually, with 2,000 to 3,000 dying from liver disease or overdose. Another 13,000 to 14,000 people are hospitalized every year due to alcohol-related illnesses. In 2024, around 7,700 people received treatment for alcohol dependence in psychiatric hospitals, while an additional 23,000 were treated elsewhere. Therapeutic communities currently offer just 275 places for patients, highlighting the gap between need and available care.

The national helpline for quitting alcohol, 800 350 000, has been active since 2019, and campaigns such as “Dry February” aim to raise awareness—though they have faced criticism from alcohol producers.

Chomynová noted that the current capacity of treatment services covered by public health insurance is insufficient, with average waiting times for treatment reaching up to two months. More people are now turning to non-medical addictology clinics, aftercare centers, and low-threshold facilities, which have seen rising demand.

The report also highlights the widespread misuse of psychoactive drugs. Roughly 275,000 people mix alcohol with medications such as sedatives, sleeping pills, or opioid painkillers. Between 1.1 and 1.4 million people—12 to 15 percent of the population over 15—use these medications for more than six weeks or in ways not prescribed. Women are affected twice as often, and usage tends to increase with age. Some users, including the chronically ill, lose control of their drug intake, while others turn to these substances as a replacement for other drugs. With easy access to prescriptions, and additional supply coming from family, friends, or the illegal market, the availability of psychoactive drugs in the Czech Republic remains dangerously high.

Source: CTK

Prime Minister Donald Tusk: Europe Must Be United and Secure

Ahead of the European Council summit in Brussels, Prime Minister Donald Tusk emphasized the urgent need for unity and security across the continent. Key topics at the meeting include strengthening the EU’s eastern border and bolstering Europe’s overall defense in response to ongoing threats, particularly from Russia. Tusk highlighted Poland’s pivotal role in the negotiations for joint European funding to reinforce NATO’s eastern flank, describing it as a historic step toward a more secure and cohesive Europe.

Speaking before his departure, the Prime Minister underscored that Poland’s security is inseparable from the security of the entire European Union. With the war in Ukraine continuing to destabilize the region, he stressed the importance of collective European action, calling the current initiatives “the most important European project of recent decades” — aimed at creating a Europe that is “safe, armed and united against the Russian threat.”

Tusk also addressed recent developments in the European Parliament, where Polish opposition parties, including PiS and Confederation, voted against the East Shield and European defense initiatives. He warned that any attempts to weaken Europe’s unity on security matters serve the interests of the Kremlin. In his words, “For Putin, the greatest nightmare is a strong and united Europe… Any action that hinders European defense unity is, in effect, Russian sabotage.”

Back in Warsaw, the Sejm is debating a resolution that reaffirms support for the European Parliament’s position on the East Shield. The resolution, which was taken up by the National Defense Committee on Thursday morning, highlights the critical importance of Poland’s participation in broader European security measures. Tusk framed the vote as a test of political priorities, questioning whether previous opposition was due to ignorance, miscalculation, or deliberate political choice. “This vote will show who truly cares about Poland’s security,” he declared.

Turning to domestic matters, Tusk urged President Duda to sign a newly passed law enabling the temporary suspension of the right to apply for asylum for those illegally crossing Poland’s borders. He called this legislation a vital response to the growing threat of hybrid warfare, citing illegal migration from Belarus as a strategic tool used by Vladimir Putin and Alexander Lukashenko. “The goal is to make clear that one cannot apply for asylum after illegally crossing the border,” he said. Once the law is signed, the government plans to swiftly introduce regulations to further deter human smuggling operations.

Tusk also emphasized that Poland will not face these challenges alone. He reminded the public that Poland had long warned its European allies about the threat posed by Russia. Now, with greater recognition of those warnings, he believes the continent is ready to act collectively. “We are one step away from Europe taking shared responsibility for our security. We must not waste this historic opportunity.”

In addition to defense and border issues, the European Council summit will also address economic policy and the ongoing situation in the Middle East.

Source: gov.pl
Photo: Prime Minister Donald Tusk

New regulations reshape Poland’s wood and furniture sectors

March brings attention not only to the budding trees of early spring but also to World Forest Day and Joiner’s Day, both of which highlight the importance of the woodworking and furniture sectors to Poland’s economy. These industries play a crucial role, providing significant employment and contributing considerable value to national production. However, in recent years, they have encountered mounting challenges—particularly furniture manufacturers, who have seen a sharp increase in financial strain. According to data from the BIG InfoMonitor Debtors Register and the BIK credit information database, the outstanding liabilities of furniture producers have surged by 23 percent over the past year, reaching nearly PLN 336 million.

The Ministry of Development and Technology recognizes wood as a strategically important raw material for Poland. The forestry and wood industry employs over 136,000 people and contributes meaningfully to GDP. Wood is also one of Poland’s key export products, valued both across Europe and globally. In light of this, the government has introduced new regulatory measures aimed at securing national forest resources and stabilizing the timber market. Among the key steps is the restriction of timber exports beyond the European Union, including to China, which had previously been the third-largest recipient of Polish timber. This change has dealt a blow to wood exporters, cutting them off from significant international markets. Furthermore, logging has been limited in 1.3 percent of State Forests, with additional restrictions on the horizon—measures that are likely to raise production costs and, consequently, impact both the prices of end products and the broader financial health of the industry.

According to Dr. hab. Waldemar Rogowski, chief analyst at BIG InfoMonitor, the wood sector now faces the pressing challenge of adapting to these regulatory shifts. The key issue will be striking a balance between preserving forest resources and maintaining the competitiveness of Polish firms on the global stage.

The furniture manufacturing sector, closely tied to the wood industry, is particularly affected. Poland remains a powerhouse in this field, responsible for 19 percent of all EU furniture exports, making it the region’s top exporter. It is also one of the most labor-intensive industries, meaning it is highly sensitive to wage increases and other rising operational costs. The sector is dominated by Polish-owned companies and is heavily export-oriented, with international markets accounting for nearly two-thirds of turnover. This makes it especially vulnerable to global market fluctuations, which are currently unfavourable.

Exports of Polish furniture to Germany—its largest market—fell by about 4 percent last year, while imports from China continue to rise. This shift has worsened the financial condition of domestic producers. At the end of January, debts in the furniture production sector (PKD 31) had risen to nearly PLN 336 million, an increase of almost PLN 63 million compared to the previous year. Office and shop furniture manufacturers are in the most difficult position, with long-term unpaid liabilities increasing by 46 percent to over PLN 118 million. Kitchen furniture producers fared only slightly better, seeing a 20 percent increase in arrears to just over PLN 67 million. The only subgroup that avoided further debt accumulation was mattress manufacturers, though they make up a small fraction of the industry.

Currently, almost 2,900 furniture companies—5.6 percent of the sector—are struggling with overdue payments, a figure that is one percentage point higher than the national business average. Many of these businesses are niche specialists producing specific types of furniture. Like many other sectors, furniture manufacturing relies on complex supply chains, with final products assembled through the collaboration of numerous subcontractors. This interconnectedness can lead to a domino effect of delayed payments. Research from BIG InfoMonitor indicates that nearly 57 percent of entrepreneurs dealing with frozen invoices report that such delays directly impact their ability to meet their own financial obligations.

Paweł Szarkowski, President of BIG InfoMonitor, emphasizes the importance of proactive debt management. He stresses that assessing clients’ payment reliability should now be standard practice in the supply chain, as it is key to maintaining financial stability in any sector.

While the woodworking and furniture sectors are closely linked, the new timber regulations could have paradoxical effects. On one hand, the higher cost of raw materials—particularly wood-based panels—and rising international competition, especially from China, pose challenges to furniture makers. On the other hand, limiting timber exports outside the EU might improve the availability of raw materials for domestic manufacturers, potentially giving them a competitive edge at home. However, this could come at the cost of timber producers losing access to valuable foreign markets.

Ultimately, both industries will need to adapt not only to regulatory changes but also to shifting consumer behavior. In the current climate of economic uncertainty, buyers are increasingly driven by price rather than quality. Preserving consumer demand while navigating the evolving regulatory landscape will be essential to the survival and future growth of both sectors.

Source: InfoMonitor

Czech Business Cycle Survey – March 2025: Overall confidence in the economy increased

Economic sentiment in the Czech Republic improved in March 2025, as indicated by the composite confidence indicator, which rose by 1.7 points to 99.5 month-on-month. This growth reflects similar positive developments in both its key components. The business confidence indicator increased by 1.6 points to 99.6, while consumer confidence climbed by 2.2 points to 98.8. In a year-on-year comparison, both the composite and business indicators are at higher levels than in March 2024.

Business confidence saw a rise across all monitored sectors. Compared to February, the most significant improvement was recorded in trade, which rose by 2.3 points. This was followed by selected services with an increase of 1.8 points, industry with a 1.3-point gain, and construction with a 1.1-point rise.

Consumer confidence also strengthened in March. The indicator reached 98.8, up by 2.2 points from the previous month. There was a noticeable decline in the proportion of consumers expecting the overall economic situation in the Czech Republic to worsen over the next twelve months, although this figure still remains relatively high. Meanwhile, fewer households expect their financial situation to deteriorate in the coming year, compared to February. The assessment of current household finances remained unchanged from the previous month. There was also a slight decrease in the number of consumers who believe that now is not a good time for large purchases.

Source: CSO

PZFD’s position on the draft law for housing price transparency

Developers should provide consumers with complete, reliable, and up-to-date information on apartment prices. This is the objective of a bill proposed by Poland 2050, which has the backing of the Polish Association of Developers (PZFD). However, PZFD has suggested clarifications to ensure the law effectively serves its intended purpose.

Clarifications Proposed by PZFD

The Polish Association of Developers has submitted comments on the draft amendment to the Act on the Protection of the Rights of the Purchaser of Residential Premises. This amendment, introduced by Poland 2050 – Third Way, seeks to enhance price transparency in the housing market.

“We fully support the introduction of measures that provide prospective buyers with quick and comprehensive access to apartment price information. Such transparency benefits both buyers and developers. However, the current draft contains ambiguous wording that may lead to misinterpretations, resulting in improper enforcement or even circumvention of the regulations,” stated Bartosz Guss, CEO of PZFD.

One major concern is that the current wording allows certain companies to avoid publishing their price lists.

Ensuring Transparency at All Stages

The draft law mandates developers to disclose apartment prices in contracts defined under Article 3(1) and Article 4(1) of the Act on the Protection of Purchasers’ Rights. However, these provisions apply only to real estate sales contracts, which do not necessarily cover all stages of the development process.

“Not all agreements within a development project are sales contracts. In the early phases of an investment, developers often enter into binding agreements, such as development or preliminary sales contracts, which do not yet transfer ownership but serve as commitments for future sales,” explained Przemysław Dziąg, legal advisor and Deputy General Director of PZFD.

Due to vague wording, some companies might interpret that they are not obligated to disclose prices at the pre-sale stage. This loophole could significantly reduce market transparency for consumers and allow firms to bypass information requirements.

To address this, PZFD proposes expanding the new regulations to include all contracts throughout the investment process, including development agreements, rather than limiting them to sales contracts.

“This adjustment would ensure transparency from the initial stages, preventing information gaps and aligning with consumer protection goals,” Dziąg emphasized.

Improving Price Disclosure

PZFD suggests modifications to the information developers must disclose. While the draft law requires the publication of the price per square meter and total price, PZFD argues that consumers make decisions based on the total price of the apartment, considering factors such as finishing standards, room layout, building location, and parking availability.

“A more effective approach would be for developers to provide both the total price and the usable area of the property,” stated Dziąg. “This would give buyers a clearer understanding of value and enable better comparisons between offers.”

Additionally, the draft law mandates developers to maintain a dedicated website for each project, displaying essential company information. However, PZFD argues that many companies already publish project details on their corporate websites, which is a practical and consumer-friendly approach. The law should explicitly allow this practice while ensuring compliance with pricing transparency requirements.

Providing Complete Investment Information

PZFD recommends that developers be required to publish an investment prospectus on their websites. This document provides crucial details about construction timelines, finishing standards, financial conditions, and nearby infrastructure plans.

“This ensures buyers have a comprehensive understanding of their investment and prevents unpleasant surprises, such as the construction of a major road near their residence years later,” PZFD commented.

While PZFD supports the idea of publishing price changes, it warns that presenting the full history of every price fluctuation could be confusing for consumers. Instead, it proposes an approach similar to the Omnibus Directive used in general consumer transactions: requiring developers to disclose price changes over the past 30 days before the latest update. Buyers should also have the option to request a full price history on a durable medium.

Avoiding Redundant Regulations

The draft law introduces additional penalties for developers failing to meet transparency requirements, imposing fines of up to 10% of annual turnover. However, PZFD argues that existing laws already provide effective enforcement mechanisms through the Office of Competition and Consumer Protection (UOKiK).

Under Article 24 of the Competition and Consumer Protection Act, failing to provide complete, reliable, and truthful information is already considered a violation of consumer rights. This allows UOKiK to assess company practices and impose penalties accordingly.

“Once the new price transparency rules take effect, non-compliance would be penalized under existing laws. There is no need to duplicate regulations, especially since other sectors are not subjected to similar industry-specific rules,” concluded Dziąg.

Conclusion

PZFD supports the initiative for greater transparency in housing prices but advocates for refinements to the draft law. By ensuring that all agreements are covered, requiring clearer price disclosures, maintaining flexible website requirements, and avoiding redundant penalties, the regulations can better serve consumers while maintaining practical implementation for developers.

Effective CO2 cost balance needed for the commodity industry

The European basic industry must invest to remain competitive, yet it faces a significant dilemma. Traditional production technologies pose long-term risks to climate targets, while climate-neutral alternatives remain costly and economically unviable in the short term. The European Emissions Trading Scheme (EU ETS) aims to improve the financial feasibility of sustainable technologies, but international competition presents a challenge. Free allowances in emissions trading help maintain competitiveness but reduce incentives for climate-neutral production. The EU’s border adjustment mechanism (CBAM) was introduced to address CO2 cost disparities, yet its implementation has not sufficiently compensated for international price differences. Until CO2 pricing becomes comparable worldwide, a pragmatic transition solution is needed.

The European basic materials industry, particularly in sectors such as steel, cement, and chemicals, faces a challenging task. It must transition to climate-friendly practices while competing in a global marketplace. Energy-intensive production processes generate significant CO2 emissions, and the EU’s CO2 pricing through the ETS is intended to make climate-neutral production more viable. However, outside the EU, CO2 costs are significantly lower or nonexistent. This discrepancy could lead to production relocation and carbon leakage, where companies move operations to regions with lower emissions costs. To prevent this, raw material manufacturers in the EU have historically received free emissions certificates, but this also diminishes the motivation to invest in sustainable production and material efficiency.

The introduction of the CBAM aims to correct this imbalance by replacing free allowances with a mechanism that adjusts for CO2 cost differences between the EU and third countries. However, the CBAM does not fully account for export-related CO2 costs or the complexity of value chains. As a result, high CO2 price discrepancies continue to impact competitiveness. Discussions around extending free allowances have emerged, but such a move could hinder incentives for sustainable production. Further complicating matters, the current U.S. administration under Donald Trump has shown no intention of implementing a comparable CO2 pricing system in the near future.

A practical transitional strategy is needed to maintain EU industry competitiveness while CO2 pricing mechanisms mature globally. Three key instruments can be combined to achieve this:

EU Emissions Trading: Companies continue receiving free allowances but must implement climate neutrality transformation plans. This incentivizes efficiency improvements in existing production.

Climate Protection Contracts: These contracts provide financial rewards for CO2 reductions, encouraging investments in sustainable production technologies.

Clean Economy Contribution: A standardized levy on domestic and imported raw materials promotes material efficiency and funds climate protection initiatives.

The CO2 compensation framework operates through three mechanisms: free allowances for conventional manufacturers, financial incentives for climate-neutral producers, and a clean economy contribution applied to both domestic and imported raw materials. This levy can be refunded on exports in accordance with world trade regulations, ensuring compliance and minimizing competitive distortions.

The CBAM has only partially addressed CO2 cost disparities. While it encourages global partners to adopt CO2 pricing, it does not fully mitigate competitive disadvantages. Firstly, export-related CO2 costs remain uncompensated due to trade law constraints, exposing a significant portion of European manufacturing to carbon leakage risks. Secondly, processing industries are not adequately protected under CBAM, forcing European manufacturers to bear higher material costs than non-EU competitors. Thirdly, loopholes such as resource shuffling—where climate-friendly production is directed toward EU exports while more polluting processes are redirected elsewhere—allow companies to sidestep the border adjustment mechanism.

A Clean Economy Contribution offers a viable alternative to these challenges. By applying a fixed levy on all raw materials, regardless of origin, and allowing refunds for exports, it reduces administrative complexity and trade distortions. This contribution is based on the previous year’s average EU ETS CO2 price and adjusted using sector-specific benchmarks. It also generates substantial revenue—potentially €50 billion annually at a CO2 price of €75 per ton—which can be reinvested into industrial decarbonization and circular economy initiatives.

By integrating the Clean Economy Contribution with the existing EU ETS framework, the industry would benefit from stronger incentives for material efficiency, increased funding for climate protection, and greater alignment with global trade rules. The transition to climate-neutral production remains financially challenging due to the high cost of new technologies. To address this, Germany, the Netherlands, and France are implementing Carbon Contracts for Difference (CCfD), which provide regulatory security for investors in sustainable production.

For this strategy to be effective across Europe, sufficient funding for climate protection contracts is needed. A Clean Economy Contribution at the EU level would provide this financial support while maintaining fair competition. A study commissioned by the European Commission’s Directorate-General for Taxation and Customs Union (TAXUD) found that a Clean Economy Contribution effectively reduces greenhouse gas emissions, minimizes carbon leakage risks, and provides strong financial backing for industrial transformation. Despite this, the EU has prioritized CBAM to incentivize international partners to implement CO2 pricing.

While the CBAM is being phased in, its financial impact will not be fully realized until 2034. In the meantime, introducing a Clean Economy Contribution would help maintain industrial competitiveness and drive climate-friendly investments. Implementing this contribution would ensure that CO2 pricing supports industrial modernization even before global CO2 prices converge. Moderate price increases would result, but these would be progressive and have a minimal impact on lower-income households. For instance, at a CO2 price of €75 per ton, the cost increase for wealthier households would be approximately 0.5%, with lower-income groups experiencing even less impact.

To safeguard the competitiveness of the European basic materials industry, a balanced approach is necessary. The EU must continue emissions trading while ensuring that raw material manufacturers and processing companies do not bear disproportionately high CO2 costs. Global CO2 pricing progress, supported by CBAM, remains the long-term solution. However, until international CO2 pricing reaches parity, a transitional framework is essential. By combining emissions trading, climate protection contracts, and a Clean Economy Contribution, the EU can effectively balance environmental goals with economic competitiveness.

The new German federal government should advocate for the introduction of a Clean Economy Contribution at the EU level. Implementing this measure within the next two years would optimize the effectiveness of the EU ETS. Additionally, national governments should expedite climate protection contract tenders and set quotas for climate-neutral raw material production. By taking these steps, the EU can drive sustainable investments, reduce carbon dependency, and maintain its leadership in industrial innovation.

Source: DIW Berlin

Polish non-bank loan market sees growth in February 2025

The Polish non-bank loan market continues to expand, driven by two main product segments: special-purpose loans and cash loans, each with distinct characteristics and trends.

Special-Purpose Loans: Moderate Growth Amid Lower Average Loan Value

Special-purpose loans are granted to finance specific purchases of goods or services, rather than providing direct cash to borrowers. In February 2025, the average value of a newly issued special-purpose loan stood at PLN 675, marking a 5.8% decline compared to the same period in 2024.

Despite the drop in average loan value, the number of newly issued special-purpose loans surged by 18.8% year-over-year (y/y), while their total value increased by 12.0% y/y. This suggests a trend toward issuing lower-value loans more frequently. Unlike previous years, all special-purpose loans granted in February 2024 were reported, eliminating any distortion from incomplete reporting and ensuring that the February 2025 figures accurately reflect market conditions.

Cash Loans: Strong Performance Across Short and Long-Term Segments

Cash loans, which are directly deposited into borrowers’ accounts for discretionary use, exhibited robust growth in February 2025. These loans are categorized based on their duration:

1) Short-Term Cash Loans (Up to 60 Days)

– The average loan value reached PLN 2,523, reflecting a 12.1% increase from February 2024.

– Total loan sales amounted to PLN 994 million, up by 31.5% y/y.

– The number of short-term cash loans issued increased by 16.9% y/y.

– These loans accounted for 72.7% of the total value of all cash loans granted in February 2025.

2) Long-Term Cash Loans (More than 60 Days)

– A total of 67,000 loans were issued, amounting to PLN 374 million.

– Compared to February 2024, this represents a 16.7% increase in the number of loans issued and a 30.4% rise in total loan value.

– The average loan value for long-term cash loans rose to PLN 5,603, marking a 12.2% increase y/y.

Similar to special-purpose loans, February 2024 saw complete reporting of cash loans, ensuring an accurate basis for comparison in 2025.

Market Trends for Early 2025

Between January and February 2025, non-bank loan companies issued significantly more loans compared to the same period in 2024:

– Special-purpose loans increased by 22.1% in number and 13.4% in value.

– Short-term cash loans (up to 60 days) rose by 19.1% in number and 33.6% in value.

– Long-term cash loans (more than 60 days) grew by 18.8% in number and 35.7% in value.

These trends highlight the ongoing expansion of Poland’s non-bank lending sector, with strong demand for both short-term and long-term credit products. While special-purpose loans remain the dominant category in terms of loan volume, cash loans account for a higher total loan value, reinforcing their critical role in the financial ecosystem.

Source: BIK

Rising Poverty in Slovakia: Over 980,000 people at risk of social exclusion in 2024

In Slovakia, more than 980,000 people, approximately every sixth resident, faced poverty or social exclusion in 2024. Both the share and the number of individuals at risk increased compared to the previous year, marking a continuing trend of deteriorating poverty indicators since 2020. However, the situation showed improvement in two of the eight regions in Slovakia and remained unchanged in one. More than 20% of the population continued to face poverty in three regions.

The overall at-risk-of-poverty or social exclusion rate reached 18.3% in 2024, representing over 980,000 individuals. This marked an increase of 37,000 people year-on-year. In 2023, 17.6% of the population were at risk, indicating a 0.7 percentage point rise within a year. These figures are based on the results of the EU SILC 2024 survey conducted by the Statistical Office of Slovakia, which assesses household income and living conditions.

The survey identifies those affected by one or more of the three dimensions of poverty: income poverty, severe material and social deprivation, or living in a household with very low work intensity. The aggregate indicator, known as the “at-risk-of-poverty or social exclusion rate,” measures the proportion of affected individuals within the total population. Severe material and social deprivation applies to those experiencing at least seven out of thirteen material deficiencies.

Examining the long-term development of poverty indicators, Slovakia saw a decrease in the share of people at risk of poverty or social exclusion until 2020. In 2015, approximately 907,000 individuals were at risk, and by 2020, this number had declined significantly. However, the situation has been worsening since 2020 due to the COVID-19 pandemic, rising prices, and inflation. While the overall trend continues to be negative, the rate of increase has slowed in recent years.

The most vulnerable group consists of those facing all three forms of poverty or social exclusion. According to EU SILC 2024 data, this group comprises 2.1% of the Slovak population, or about 112,000 individuals. Addressing their needs should be a priority in poverty reduction measures.

Regional disparities remain significant in Slovakia. The highest poverty rate has persistently been recorded in the Prešov region, where every fourth resident—around 224,000 people, or 28.0% of the population—was affected in 2024. Similarly, Banská Bystrica and Košice regions had poverty rates exceeding 20%. In contrast, the Bratislava region maintained the lowest share of people affected by poverty, standing at 8.6% in 2024, followed by Trnava at 12.1% and Žilina at 13.7%.

Year-on-year, the situation worsened in five out of eight regions, with the most significant deterioration observed in the Nitra and Trenčín regions. In Nitra, the number of people affected by poverty rose from 16.1% to 19.4%, an increase of 22,000 individuals. The Trenčín region also saw a rise from 13.8% in 2023 to 15.2% in 2024. Conversely, poverty rates declined in Bratislava, where the share fell from 9.5% in 2023 to 8.6% in 2024, and in Žilina, where the rate dropped from 14.0% to 13.7%. Banská Bystrica saw only a minimal change, with the rate remaining at 23.1%.

Households with children remain significantly more at risk than those without. In 2024, one-fifth of households with dependent children—20.4%—faced poverty, compared to slightly over 15% of households without children. Among households with children, single-parent families were the most vulnerable, with almost 38% of individuals at risk. However, this figure marked a notable improvement from 46.4% in 2023. Large families, defined as households with two adults and three or more dependent children, also remained highly vulnerable, with nearly 33% of individuals affected, although this figure had decreased from 37.1% in 2023. Among households without children, the most at-risk group consisted of single women aged 65 and older, with 30.3% affected.

The most prevalent form of poverty in Slovakia is income poverty, which affects individuals living in households with incomes below the national poverty line. In 2024, this threshold was set at EUR 6,103 per year, or EUR 509 per month for a single-person household, based on household income data from 2023. Approximately 14.5% of the population—around 778,000 individuals—lived below this line, marking a year-on-year increase of nearly 12,000 people.

Severe material and social deprivation is another significant factor, affecting 7.6% of the population, or 408,000 individuals. This number increased by over 33,000 year-on-year. The most common material hardships included the inability to afford a one-week annual holiday away from home (33.4% of residents), unexpected financial expenses of EUR 461 (28.2%), and replacing worn-out furniture (23.3%).

The third dimension, very low work intensity, affected 3.8% of the population, equivalent to nearly 206,000 people. This category includes working-age individuals living in households where members worked less than one-fifth of their annual work potential. The share of people at risk in this category increased by 0.2 percentage points year-on-year.

The report highlights the continued challenges in poverty reduction efforts in Slovakia while noting regional differences and slight improvements in some areas. Addressing income disparities, supporting vulnerable households, and improving employment opportunities remain key to mitigating the effects of poverty and social exclusion.

Source: Statistical Office of the SR

Phase 2 of Hagibor development completed in Prague

The second phase of the Hagibor development in Prague, comprising the Delta and Gamma buildings, has been completed. Located on the border between the Vinohrady and Strašnice districts, the mixed-use project integrates residential, office, and retail spaces.

The overall masterplan, co-authored by IBA, envisions a new city quarter near Vinohradská Street, within a five-minute walk from the Želivského metro station. The first phase, including the Alfa and Beta residential buildings totaling nearly 15,000 square meters, was completed in mid-2022. The second phase, featuring the Delta and Gamma buildings, adds 27,000 square meters and 272 residential units with ground-floor retail space.

The architectural design of the new buildings follows the principles established in the first phase, with each structure maintaining a distinct yet complementary appearance. The Delta building continues the street frontage along Počernická Street, consisting of three main volumes above a two-story base. Continuous balconies define the facade, complemented by vertical fins for shading, privacy, and acoustic separation.

In contrast, the Gamma building, positioned further back, adopts a more expressive design. Its façade features angular balconies that provide each apartment with a unique outdoor space, contributing to a visually dynamic composition.

Public and private spaces have been designed to maintain continuity across the development. The landscaping concept, developed with French landscape designer Michelle Desvigne, incorporates a ‘micro wood’ approach, with dense clusters of mature trees and shrubs to enhance the environment and modify the microclimate.

The Hagibor development has received multiple awards, with the Gamma building recognized as Project of the Year in 2024. The project continues to evolve, with future phases set to maintain its architectural and environmental principles.

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