Slovak retail sales drop for fourth consecutive month as government austerity measures bite

Retail sales in Slovakia fell 2.5 percent year-on-year in February, marking the fourth consecutive monthly decline as consumers reduced spending amid economic uncertainty. The drop occurred even before the outbreak of conflict in the Middle East, with Slovaks already shopping cautiously due to domestic economic pressures. February marked the first month when the third wave of government fiscal consolidation measures fully impacted workers' paychecks, further dampening consumer spending. Slovakia's government has implemented a series of austerity measures aimed at reducing the budget deficit, including tax increases and spending cuts that have reduced disposable income for many households. Rising inflation combined with sluggish wage growth is expected to keep consumer spending subdued for the remainder of the year, posing challenges for retailers and the broader Slovak economy.