Poland faces constitutional dispute over SAFE mechanism following presidential veto

Poland is facing a growing institutional dispute after the president vetoed legislation setting out the framework for implementing the SAFE mechanism, with the disagreement extending beyond defence financing to broader constitutional questions.

The veto has triggered a conflict between the government and the president over how long-term public financial commitments should be approved. At the centre of the dispute is whether a planned loan arrangement linked to the programme requires formal ratification through legislation.

Constitutional experts indicate that international agreements imposing a “significant financial burden on the state” should be approved by parliament and signed into law. This would apply in particular to large-scale, multi-year financing commitments. The government, however, argues that a loan from the European Commission does not qualify as an international agreement and therefore does not require parliamentary approval or presidential consent.

Despite the veto, the government has signalled its intention to proceed. It has adopted a resolution under the “Armed Poland” programme aimed at enabling designated state institutions to enter into the financing arrangement. In practice, this approach seeks to move forward without legislative approval, as the governing coalition does not have the three-fifths majority required in the Sejm to override the veto.

The situation raises concerns about legal certainty. If the government proceeds without a clear statutory basis, questions may arise over the validity of the commitment. Advisers to the president have indicated that the resolution could be challenged before the Constitutional Tribunal. However, the tribunal itself remains a subject of political dispute, with its legitimacy questioned by parts of the governing coalition.

This creates a broader institutional tension, with the executive and the presidency taking differing positions on the interpretation of constitutional requirements. The outcome may influence how future strategic financial decisions are handled, particularly in cases involving significant public expenditure.

Legal commentators note that precedents set in such situations can have lasting implications. If major financial commitments are increasingly undertaken through government resolutions rather than legislation, it could alter the balance between executive authority and parliamentary oversight.

The dispute therefore extends beyond a single policy measure and touches on the stability of Poland’s constitutional framework. Observers point out that clarity in legal procedures and adherence to established approval mechanisms remain central to maintaining institutional balance, particularly in areas involving long-term public liabilities.

Source: WEI

Energy Shock from Iran Conflict May Slightly Slow Germany’s Economic Recovery

Germany’s economic recovery could face a modest slowdown due to rising energy prices linked to the conflict involving Iran and ongoing uncertainty in U.S. trade policy, according to the latest spring forecast from the German Institute for Economic Research (DIW Berlin). However, economists say the current situation is unlikely to derail the country’s gradual rebound after several years of weak growth.

The report suggests that higher energy costs could push Germany’s inflation rate up by around 0.4 percentage points, bringing it to approximately 2.4 percent this year. At the same time, economic growth may be reduced slightly, with GDP expected to expand by about 1.0 percent in 2026 and 1.4 percent in 2027, roughly 0.1 to 0.2 percentage points lower than previously projected.

Despite these pressures, analysts believe the impact of the latest energy price increases remains significantly smaller than the shock experienced during the 2022–2023 energy crisis. Germany’s reduced reliance on fossil fuel imports from the Gulf region, compared with its earlier dependence on Russian gas and oil, has helped cushion the economy from more severe disruptions.

Economists at DIW assume that the most significant surge in energy prices has already occurred and that oil and gas prices will rise only moderately in the coming months. Under this scenario, the war-related energy shock would slow the recovery but not reverse it.

Fiscal policy is expected to play an important role in sustaining economic activity. Public spending and investment programmes are already supporting domestic demand, with government expenditure gradually increasing. Initial investment has been focused on defence, while infrastructure spending is expected to rise over the coming years.

Domestic demand remains the main driver of economic activity. Germany’s labour market continues to show resilience, supporting private consumption. In contrast, export-oriented industries are recovering more slowly as they face structural challenges and weaker global demand.

At the same time, economic forecasts remain subject to several risks. Trade tensions involving the United States, as well as broader geopolitical developments, could affect foreign trade and investment sentiment. Conversely, a de-escalation of tensions in the Middle East could ease energy prices and improve economic prospects.

Another key factor influencing the recovery is the effectiveness of public investment programmes. Germany has introduced the Special Fund for Infrastructure and Climate Neutrality (SVIK) to support long-term investment, particularly in infrastructure. However, municipalities—many of which face significant infrastructure backlogs—will receive only about €56 billion, roughly 11 percent of the total fund, distributed through the federal states over a twelve-year period.

According to DIW analysis, the economic impact of this programme will depend heavily on how the funds are used. If the resources are directed entirely toward new investment projects, municipal investment could increase by around €4.7 billion per year, helping reduce regional disparities. However, if part of the funding is used to finance projects that were already planned, the annual stimulus could fall to roughly €1.5 billion, limiting its broader economic impact.

Administrative capacity at the municipal level also remains a concern. Many local authorities, particularly in financially weaker regions, lack sufficient resources for planning, procurement and project management. Without improvements in these capacities, economists warn that the infrastructure fund may have a more limited effect than policymakers hope.

Researchers therefore stress that stronger institutional support for municipalities will be necessary if public investment is to play a meaningful role in strengthening Germany’s economic recovery and modernising its infrastructure.

Navigating Legal Complexity in Romania’s Real Estate Market: An Interview with Ioana Niculeasa of NNDKP

Romania’s real estate sector continues to evolve in a complex legal and administrative environment. Developers and investors face challenges ranging from urban planning approvals and permitting delays to litigation risks and changing regulatory frameworks. As projects become more sophisticated and scrutiny around permitting increases, legal advisors play an increasingly central role in ensuring that developments move forward while managing potential risks.

In this interview with CIJ EUROPE, Ioana Niculeasa, Head of Real Estate at NNDKP, discusses the current state of urban planning predictability in Romania, the legal vulnerabilities developers must consider when pursuing projects, and how banks and investors are adapting their due diligence processes. She also reflects on the growing importance of brownfield redevelopment, the role of legal expertise in navigating permitting complexities, and the potential opportunities that could arise from regional developments in the coming years.

One of the key questions facing the Romanian real estate market today concerns the predictability of the permitting process, particularly in Bucharest, where administrative delays have been widely discussed by investors and developers. According to Niculeasa, Romania’s legal framework technically provides a structured hierarchy of planning and permitting documents. At the top sits the General Urban Plan (PUG), which establishes the planning framework for a city. If a project deviates from this framework, additional zoning documentation such as a PUZ or PUD may be required before a building permit can ultimately be issued.

In theory, this layered structure should provide a degree of clarity for investors. In practice, however, predictability is often reduced by delays within administrative processes. Authorities responsible for issuing various approvals and endorsements do not always operate under strict timelines, leaving investors uncertain about how long the process may take.

To address these challenges, the Romanian government introduced legislative changes aimed at improving predictability. An emergency ordinance adopted in 2025 established clearer deadlines for authorities to issue required approvals during the permitting process. In certain situations, if an authority fails to respond within the designated timeframe, the lack of response may be interpreted as tacit approval. Niculeasa believes this represents a step toward greater administrative clarity, although its real impact will become clearer as it is tested in practice.

Beyond procedural delays, developers are increasingly concerned about legal challenges to zoning documentation and building permits. Administrative litigation related to urban planning has become more common, and projects can face significant delays if legal vulnerabilities emerge.

Niculeasa explains that developers must now pay close attention not only to the ownership history of a property but also to the integrity of the permitting process itself. Historically, legal due diligence focused primarily on verifying land titles and identifying potential restitution claims. Today, however, the permitting process has become just as critical.

Many of the legal risks associated with building permits arise from procedural issues rather than fundamental planning conflicts. Small errors in documentation or consultation processes can create vulnerabilities that may later be used in legal challenges by competitors, neighbours or non-governmental organisations. Public consultation procedures, environmental assessments and technical compliance with planning parameters must all be handled carefully.

According to Niculeasa, even minor administrative inaccuracies can become problematic. For example, incorrect details in environmental documentation or inconsistencies in project descriptions may create grounds for litigation. Because of these risks, developers increasingly rely on teams of specialised consultants, including lawyers, architects and technical advisors, to review permitting documentation in detail before construction begins.

Another important issue concerns the timeframe during which zoning documentation and permits may be challenged. Legislative changes in 2023 have attempted to limit the period in which certain urban documents (like building permits or PUZs) can be contested by NGOs (Non-Governmental Organization), providing greater legal certainty once the defined timeframe has passed. While challenges from directly affected individuals may still occur, the introduction of clearer time limits for the plaintiffs like the NGOs represents an attempt to balance legal oversight with development predictability.

Financial institutions have also adapted their approach in response to these risks. Banks financing real estate projects now conduct more extensive due diligence not only on property ownership but also on the permitting framework surrounding a development. In many cases, financing agreements require confirmation that the relevant documentation has been publicly disclosed and that the period for legal challenges (at least of the NGOs) has passed.

As a result, legal advisors now carry greater responsibility when preparing due diligence reports. Lawyers must assess not only whether permits have been issued correctly but also the likelihood that those permits could face future legal challenges. According to Niculeasa, this expanded scope of legal analysis has increased the importance of collaboration between real estate and litigation teams within law firms.

In order to strengthen their expertise in this area, Niculeasa explains that her team has studied the broader legal principles underlying urban planning regulations, including legal doctrine from jurisdictions such as France, whose administrative legal framework has influenced Romanian legislation. Understanding the conceptual foundations of urban planning law helps lawyers anticipate how courts may interpret regulatory provisions in disputes.

Despite the complexities of the Romanian system, Niculeasa notes that other European countries offer useful comparisons. For example, the Czech Republic is often cited as having one of the lowest risks of permitting-related litigation in the region due to clearer planning regulations and more streamlined administrative processes. Romania’s development patterns, particularly in Bucharest, have historically been less structured, which has contributed to today’s challenges.

When discussing development strategies, Niculeasa expresses a particular interest in brownfield redevelopment projects. These developments involve converting former industrial or underused sites into new residential, commercial or mixed-use projects. Although brownfield projects can present complex legal and environmental considerations, they also offer opportunities for urban regeneration.

From a legal perspective, brownfield developments may involve more complex ownership histories and potential environmental liabilities, particularly if former industrial activities left contamination on the site. Environmental due diligence is therefore a crucial step in assessing these projects. However, brownfield sites often benefit from existing infrastructure such as roads, utilities and public transport connections, which can make redevelopment more attractive than building entirely new infrastructure for greenfield developments.

In addition, planning approvals may sometimes be easier to obtain for brownfield projects because redevelopment of previously used sites can be seen as beneficial for local communities. Converting underutilised land into productive urban spaces can support regeneration while avoiding the loss of agricultural land.

Looking beyond Romania’s domestic market, Niculeasa also sees potential opportunities linked to regional developments. If geopolitical conditions change and reconstruction efforts begin in neighbouring Ukraine, Romania could play a significant role in supporting economic activity related to rebuilding infrastructure and industry. Some investors are already exploring opportunities in regions connected to major transport routes leading eastward.

Such developments would likely generate increased legal work in areas including property transactions, construction contracts and regulatory compliance. While the precise scale of these opportunities remains uncertain, the possibility illustrates how regional dynamics may influence Romania’s real estate and infrastructure sectors in the future.

Despite the ongoing challenges surrounding permitting and litigation risks, Niculeasa remains cautiously optimistic about the direction of the Romanian regulatory environment. Legislative changes have introduced new tools aimed at improving predictability, although their effectiveness will only become clear as they are implemented in practice.

For now, she advises investors to approach each project individually and to rely on strong advisory teams capable of analysing both the legal and technical aspects of development.

As Romania’s real estate market continues to mature, the interaction between law, planning policy and investment will remain a defining feature of the sector. For legal professionals such as Ioana Niculeasa, navigating that intersection requires not only technical expertise but also adaptability and a long-term perspective.

In a market where regulations, administrative procedures and investment conditions are constantly evolving, the role of legal advisors is increasingly focused on guiding projects through complexity while helping investors move forward with confidence.

The $9.5 Million Facebook Message: Anatomy of a Modern Inheritance Scam

In the age of social media networking, unexpected messages from strangers have become common. Some are genuine attempts at connection, while others are carefully constructed fraud attempts designed to exploit curiosity, trust, or opportunity. A recent message sent to Ron Little illustrates a classic example of what cybersecurity experts describe as an “inheritance” or “advance-fee” scam, a type of fraud that has circulated globally for decades but continues to evolve through platforms such as Facebook, LinkedIn and messaging apps.

The Initial Approach

The sender, identifying herself as “Yucil Azara,” claims to be a bank employee in Istanbul working for a major Turkish bank. She explains that she discovered the recipient while searching for someone with the surname “Little” and decided to reach out. However, messages of this kind frequently involve identity fraud, where the sender may be impersonating a real person or falsely claiming to represent a legitimate financial institution. Cyber-security specialists warn that scammers often adopt the identities of bank employees, lawyers or financial officials to create a sense of credibility and authority before presenting an alleged financial opportunity.

According to the story presented, a deceased British citizen named Adrian Little allegedly deposited $9.5 million in a Turkish bank in 2007 with a fixed term of 108 months. The sender claims the individual died during the COVID-19 pandemic in Ankara in April 2020 and that no relatives were listed on the account. Because the bank management supposedly does not yet know of his death, she proposes a plan: the recipient could be presented as a relative and inherit the funds.

The message ends with an urgent request to move the conversation away from Facebook to a private Gmail address and emphasizes secrecy.

Common Characteristics of Financial Fraud Messages

Although the message may appear unusual or even intriguing, its structure follows a well-known template used in international scams. Several warning signs appear immediately:

1. Unexpected contact from a stranger

The sender claims to have searched social media for someone with the same surname as the alleged account holder. This technique attempts to create a sense of coincidence or destiny.

2. A large sum of unclaimed money

The story revolves around a substantial dormant account; $9.5 million, that supposedly has no heirs. High-value amounts are used to capture attention and encourage emotional decision-making.

3. Insider access to a bank or institution

The sender claims to be a bank employee with special knowledge of internal procedures. This is meant to add credibility and suggest the opportunity is legitimate.

4. A request for secrecy and urgency

Fraudsters often insist that the matter remain confidential and encourage the recipient to move the conversation to private channels, preventing external verification.

5. Use of free email services

The request to communicate through a generic Gmail account rather than an official bank domain is another common indicator of fraud.

How the Scam Typically Works

In most cases, once a recipient responds, the conversation progresses through several stages. The sender may request documents, identification details, or fees allegedly needed to process the inheritance. These charges might be described as legal fees, tax clearance certificates, transfer costs, or administrative charges.

Victims who pay these initial fees are often asked for additional payments later, while the promised funds never materialize.

International law enforcement agencies, including Interpol, the FBI, and Europol, have repeatedly warned about these schemes. Variations of the same approach have been circulating since the 1990s and are sometimes referred to as “419 scams,” referencing the section of Nigerian criminal law dealing with fraud.

Why Social Media Is Increasingly Targeted

Platforms like Facebook have become fertile ground for such attempts because they allow scammers to search for specific surnames, professional roles, or nationalities. Public profiles can provide enough information for a fraudster to construct a tailored narrative.

For individuals involved in international business or publishing, such as those active in global industries like real estate, finance, or media—the probability of receiving unsolicited messages about “business opportunities” or dormant funds can be even higher.

The Reality Behind the Offer

Financial institutions operate under strict regulatory frameworks, particularly regarding know-your-customer (KYC) rules, inheritance claims, and dormant accounts. If a bank account holder dies without heirs, the funds are typically handled through formal legal procedures, often involving government authorities or courts.

A bank employee cannot legally redirect funds to an unrelated individual simply because they share a surname with the deceased.

Staying Safe Online

Experts recommend several basic steps when encountering similar messages:

Do not respond to unsolicited financial offers from strangers.
Avoid sharing personal information or identification documents.
Never send money or fees to unknown individuals.
Report suspicious accounts to the social media platform.

Cybersecurity specialists also advise treating unexpected “inheritance” or “lost fortune” stories with immediate skepticism, regardless of how detailed the narrative may appear.

A Reminder of Digital Vigilance

Messages like this serve as a reminder that the digital world, while enabling global connections, also creates opportunities for deception. What begins as a seemingly fortunate coincidence can quickly turn into a sophisticated fraud attempt.

For anyone receiving such messages, the safest response is simple: do not engage, verify independently, and report the account.

Experienced but Overlooked: Older Female Workers Remain Underused in the Labour Market

Manufacturing and logistics companies across Poland have been facing labour shortages for several years. At the same time, a group of available workers continues to be underrepresented in recruitment processes: women aged 50 and above.

Despite their professional experience and willingness to work, candidates in this age group often encounter barriers linked to stereotypes about age and capability. According to labour market specialists at the Polish employment agency Opteamic, these assumptions frequently prevent employers from recognising the potential of a workforce that could help address persistent staffing gaps.

Statistics indicate that many women in mid-career remain economically active. Data from Poland’s Central Statistical Office (GUS) shows that the employment participation rate among women aged 45–54 is around 79 percent. However, the risk of long-term unemployment increases with age, even among candidates with extensive work experience.

Research by the Polish Agency for Enterprise Development (PARP) suggests that individuals over 45 are among the groups most likely to face difficulties in securing employment. Separate analysis by the Polish Economic Institute indicates that candidates under the age of 30 are invited to job interviews roughly twice as often as applicants over 50 with similar qualifications.

One commonly cited concern among employers is the assumption that older workers may struggle with physically demanding roles. However, employment agencies report that this perception often does not reflect actual labour market behaviour.

“Many women aged 50+ who approach employment agencies are ready to start work quickly and are open to positions in production or warehouse operations,” said Edyta Kuczys, Sales Director at Opteamic Group. “In our recruitment processes for temporary positions, we regularly see strong motivation among this group.”

Labour market analysts increasingly view older female workers as a distinct workforce segment with characteristics that differ from younger generations. While recent labour market discussions have focused heavily on the expectations of younger employees, such as Generation Z, the key feature of workers aged 50+ is often stability.

Many individuals in this age group have fewer family obligations compared with earlier stages of their careers, which can translate into greater availability and long-term commitment to employers.

“From our perspective, women aged 50+ represent one of the most stable and loyal groups of employees,” Kuczys noted. “They tend to be focused on long-term employment rather than short-term opportunities.”

Demographic trends are also likely to increase the importance of older workers in the labour market. Poland, like many European countries, is experiencing population ageing. Forecasts from GUS suggest that the number of people of working age could decline by several million by 2035, while the share of workers aged 45 and above will continue to grow.

At the same time, labour shortages remain evident in sectors such as manufacturing and logistics, particularly in regions with strong industrial activity.

According to labour market specialists, companies that adapt their recruitment strategies to include older workers may be better positioned to address these shortages in the future.

“Demographic trends leave little room for doubt,” Kuczys said. “Building a more inclusive approach to generational diversity today could become an important competitive advantage for businesses in the years ahead.”

She added that discussions around labour market equality often focus on gender issues but can also involve age-related barriers, particularly for women.

“Age and gender can sometimes combine to create obstacles that are not always immediately visible,” she said. “Removing these barriers could become an important factor in maintaining a stable workforce in the future.”

HOF Awards 2026 to Bring Together Central and Eastern Europe’s Top Real Estate Winners in Bucharest

The 18th edition of the HOF Awards will take place on 14 May 2026 at the Radisson Blu Hotel in Bucharest, gathering leading figures from across Central and Eastern Europe’s real estate sector to recognise the region’s top-performing companies, projects and professionals.

The Hall of Fame Awards serve as the final stage of the CIJ Awards programme, bringing together winners from national competitions across several CEE markets, including the Czech Republic, Hungary, Poland, Romania, Slovakia and other SEE countries. Only companies and developments that have already secured a national CIJ Award are eligible to compete at the regional level, positioning the HOF Awards as a showcase of the sector’s “best of the best.”

The annual gala has become a key meeting point for developers, investors, consultants and advisers operating across the region’s commercial property markets. By bringing together national winners in a single event, the awards provide a broader perspective on how different markets are evolving and highlight projects and organisations that have demonstrated strong performance and innovation.

Winners are determined through a combined voting process that includes an international jury of senior industry professionals as well as input from the wider CIJ readership across the region. The process aims to reflect both professional assessment and broader market sentiment when selecting the final award recipients.

On the evening, before the HOF Awards presentation, national CIJ Award winners will be announced, celebrating country and category champions ahead of the final ‘Best of the Best’ ceremony from the Czech Republic, Poland and other SEE countries.

The HOF Awards will follow the CEDER Conference & Exhibition, one of Romania’s established real estate gatherings, which also takes place in Bucharest on the same day. The conference brings together regional investors, developers and advisors to discuss market trends, investment strategies and the outlook for the property sector.

Together, the conference and awards gala create a full day dedicated to industry dialogue and recognition, culminating in an evening that highlights the companies and developments shaping the future of real estate across Central and Eastern Europe.

Metro Access Continues to Shape Prague Apartment Prices

Apartment prices near Prague’s metro stations continued to rise in the second half of 2025, with average transaction values exceeding CZK 118,000 per square metre in some of the more affordable areas of the city. The figures come from a market analysis of residential transactions around the capital’s metro network.

The data indicates that proximity to rapid transit remains one of the key factors influencing housing values in Prague. While prices increased across most metro corridors, significant differences persist between central and outer districts.

Properties located along the city’s A metro line remained among the most expensive. Apartments near historic central stations such as Staroměstská and Malostranská commanded the highest prices, reflecting strong demand for housing in the city centre. In these locations, values exceeded CZK 240,000 per square metre, supported by limited supply and the attractiveness of historic neighbourhoods.

Further away from the centre, housing remained more accessible. On the B metro line, the lowest prices were recorded around Černý Most, where apartments sold for just over CZK 118,000 per square metre. Prices in some other western districts along the same line also rose during the second half of the year, although they remained significantly below central Prague levels.

On the C line, the least expensive housing was found in southern districts. Around stations such as Roztyly, average prices were still close to CZK 125,000 per square metre despite a noticeable increase compared with the first half of the year. In several locations, price growth was linked to the launch of new residential projects, which tend to command higher values than older housing stock.

New development activity also contributed to price increases in several areas undergoing urban transformation. For example, neighbourhoods near Nádraží Holešovice recorded a notable rise in values as redevelopment and new construction projects attracted buyers.

The analysis also pointed to rising prices around future metro infrastructure. Housing in areas planned to be served by the upcoming metro line D has already started to gain value. In locations such as Nové Dvory, prices increased compared with earlier in the year, reflecting investor expectations ahead of the line’s completion, which is currently scheduled for the early 2030s.

Although central districts remain the most expensive part of the market, the data shows that metro accessibility continues to play a decisive role in shaping property values across the Prague residential market.

Czech Industrial Output Grows in January, Supported by Automotive Production

Industrial production in the Czech Republic increased at the start of 2026, with the automotive sector playing a key role in the expansion, according to data published by the Czech Statistical Office.

In January 2026, industrial output rose by 2.8 percent year-on-year in real terms. However, compared with December, production declined by 2.6 percent after seasonal adjustment. Despite the monthly decrease, the sector has now recorded year-on-year growth for twelve consecutive months.

The strongest contribution to the annual increase came from the manufacture of motor vehicles and related components. Additional growth was recorded in the production of fabricated metal products as well as in electricity, gas, steam and air-conditioning supply. Output also increased in the manufacture of other transport equipment and in rubber and plastic products.

At the same time, several industries recorded weaker performance. The largest negative impact on overall production came from the manufacture of non-metallic mineral products, particularly materials used in construction. Declines were also recorded in the manufacture of computer, electronic and optical products and in machinery and equipment production.

New industrial orders increased significantly compared with the same month a year earlier. The total value of new orders rose by 9.8 percent year-on-year at current prices. Demand from foreign markets increased by 8.9 percent, while domestic orders grew by 11.4 percent. However, on a month-on-month basis the value of new orders declined by 11.3 percent, largely reflecting a high comparison base from December 2025.

The annual growth in new orders was mainly driven by strong demand in the automotive sector, particularly for passenger vehicles and related components. In contrast, notable declines in orders were recorded in the production of computer, electronic and optical products, machinery and equipment, and chemicals.

Employment in Czech industry continued to decline slightly. The average registered number of employees in the sector fell by 1 percent compared with January 2025.

Across the European Union, industrial production increased by 1.4 percent year-on-year in December 2025, according to data from Eurostat. Among major economies, the strongest growth was recorded in Poland and Sweden, while Germany reported a slight decline. Czech industry grew by 4.9 percent during the same period, while Slovakia recorded the largest decrease among EU member states.

Source: CSO

Online Retail Drives Growth in Czech Retail Sales in January

Retail sales in the Czech Republic increased at the start of 2026, supported mainly by strong growth in online shopping, according to data published by the Czech Statistical Office.

In January 2026, retail sales excluding motor vehicles rose by 5 percent year-on-year in real terms, meaning the figures were adjusted for inflation. Compared with December, sales increased by 1 percent.

The strongest annual growth was recorded in non-food retail, where sales rose by 7.8 percent. Sales of automotive fuel also increased significantly, growing by 7.3 percent compared with the same month in 2025. Food sales recorded only marginal growth of 0.3 percent.

According to the statistical office, online and mail-order retail made the largest contribution to the overall increase in retail sales. Sales through these channels rose by 18.7 percent year-on-year, reflecting continued growth in e-commerce.

Several specialised retail segments also reported higher sales. Retailers selling cultural and recreational goods recorded a 9.1 percent increase, while cosmetics and personal care products grew by 8.5 percent. Sales of clothing, footwear and leather goods rose by 6.9 percent, while retailers of information and communication equipment saw a 4.6 percent increase. Pharmacies and specialised stores selling medical and orthopaedic products reported sales growth of 3.9 percent.

By contrast, some segments experienced weaker performance. Sales in specialised stores selling other household equipment declined by 3 percent year-on-year, while specialised retailers of food, beverages and tobacco recorded a decrease of 2.8 percent. In non-specialised stores where food and beverages predominate, sales rose slightly by 0.6 percent, while other non-specialised retail stores reported growth of 6.3 percent.

The automotive sector showed a different trend. Sales related to the sale and repair of motor vehicles declined both in monthly and annual comparisons. Compared with December, sales fell by 0.9 percent, while year-on-year they decreased by 5.2 percent. Both the sale of vehicles and spare parts and vehicle repair services recorded the same annual decline.

The figures are adjusted for price effects and provide an early indication of consumer spending trends at the beginning of the year.

Source: CSO

Industry Turnover Declines Slightly as Other Slovak Sectors Grow in January

Turnover across most monitored sectors of the Slovak economy increased at the beginning of 2026, although the country’s key industrial sector recorded a modest decline, according to preliminary data published by the Statistical Office of the Slovak Republic.

In January 2026, turnover in industry fell by 1 percent year-on-year in real terms, meaning figures were adjusted for inflation. The decrease followed a slight increase recorded in December 2025. Of the 16 industrial branches monitored, nine reported lower turnover compared with the same period a year earlier.

The overall result was largely influenced by a significant reduction in turnover in the manufacture of metals, which declined by 9.9 percent year-on-year, and in the manufacture of wood products, where turnover fell by 26.2 percent. These declines were partly offset by stronger performance in electricity and gas supply and in the manufacture of transport equipment.

Other sectors monitored on a monthly basis reported higher turnover at the start of the year. The strongest growth was recorded in information and communication, where turnover increased by 11.2 percent year-on-year, marking the fastest pace of expansion in thirteen months.

More moderate increases were recorded in several other sectors. Turnover rose by 2.1 percent in construction, by 1.4 percent in selected market services, and by 0.6 percent in transportation and storage.

Month-on-month developments, after seasonal adjustment, showed a mixed picture. Turnover increased in three of the five monitored sectors: industry rose by 0.3 percent compared with December, transportation and storage increased by 2 percent, and information and communication grew by 0.7 percent. At the same time, selected market services recorded a 1.3 percent decline, while construction turnover fell by 1.2 percent.

The figures are based on monthly surveys covering key sectors of the economy, including industry, construction, transportation and storage, information and communication, and selected market services. These results provide an early indication of economic activity at the beginning of the year and remain preliminary.

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