BRATISLAVA, August 16, (WEBNOVINY) – The year-over-year growth of the Slovak economy has slowed down. Based on the flash estimate of the Statistics Office of the Slovak Republic, the GDP grew 3.3 percent in Q2 in annualized terms compared to 3.5 percent reported for Q1. However, in quarterly terms the growth dynamics of the economic activity in Slovakia is still close to 1 percent. Net of seasonal influences, the GDP growth reached 0.9 percent q/q in the observed period, which was the same increase as in Q1.
“The Statistics Office will not disclose the structure before September but based on the available figures, we assume that particularly export-oriented sectors were the driving force behind the growth. The consumption of households probably still lags behind,” ING Bank analyst Eduard Hagara said to the presented figures. He added that Slovaks are still prudent when it comes to spending although the statistics signal a strong increase in employment. Based of the flash estimate of the Statistics Office, the indicator grew 2.1 percent y/y in Q2 2011.
Net of seasonal influences the GDP in Slovakia grew 3.4 percent from Q2 2010. The GDP in current prices accounted for EUR 17.122 billion, up 5.3 percent. The authority will disclose more exact figures on September 6, 2011.
The flash estimate hints at a mildly slower increase versus the 3.5-percent prediction for Q2 offered by bank analysts in the latest research by the National Bank of Slovakia. As for the twelve-month development, the polled analysts forecast that the Slovak economy will grow 3.6 percent this year. Regarding the impact of the deepening sovereign debt crisis and turbulence on world markets, some banks have already admitted that they may revise their prognoses downwards.
“The latest economic data not only from Slovakia but also on behalf of its most significant business partners indicate a slower-than-expected growth. Therefore, we will downgrade our forecast for the economic growth in the offing,” Hagara confirmed the concerns over slower GDP growth. Until now, ING Bank predicted GDP growth of 3.4 percent for 2011 and 4.5 percent in 2012.
SITA