BRATISLAVA, November 12, (WEBNOVINY) — The growth rate of Slovak economy decelerated in the third quarter of this year. This stems from a flash estimate of the Statistics Office of the Slovak Republic. It also revised downward the data for the previous quarters. Economic growth in Q1 was reduced from 4.8 percent to 4.7 percent, and in Q2 from 4.7 percent to 4.2 percent. Analysts had predicted a slowdown of economic growth in the third quarter, but a more moderate, to 4.2 percent.
Between July and September, the formation of gross domestic product reached EUR 17.465 billion, according to the flash estimate. This means a 5.9 percent increase in constant prices. Net of seasonal influences, the formation of GDP reached EUR 12.524 billion in Q3, up 4.1 percent y/y. The Slovak economy grew 4.2 percent over the first three quarters of this year in constant prices and 4.5 percent in current prices. The Statistics Office will release more accurate data on development of GDP in the third quarter on December 2.
According to ING bank analyst Eduard Hagara, the so-far released data show that the Slovak economy in the third quarter was stimulated in particular by industry benefiting from unexpectedly significant economic recovery in Germany. He estimates that the Slovak economy could grow by 3.5 percent to 4 percent this year. Next year, a deceleration to around three percent is expected. The analyst explained that the nearly three-percent economic growth in Germany will probably not be repeated, local demand in Slovakia has not recovered yet and the austerity package of the new government will also have an impact on the economy.
Following years of steep economic growth, the country’s open economy contracted by 4.7 percent in connection to the negative impacts of the economic crisis last year. In 2008, the economy grew 6.2 percent.
SITA