Fiscal consolidation is weighing on household spending in Slovakia, pushing retail sales lower, analysts say. Retail turnover fell by 5 percent year-on-year in December 2025 and declined by 1.2 percent for the whole year, according to the Statistical Office. UniCredit Bank analyst Ľubomír Koršňák noted that consolidation measures are cutting into household incomes, leading consumers to further reduce spending.
Analysts warn that weak retail sales are slowing domestic demand and will continue to dampen GDP growth in early 2026. A more stable recovery in consumption is expected only in the second half of 2026, provided inflation eases and real incomes grow faster.
Patrícia Polakovičová, Photo: TASR
