BRATISLAVA, March 6, (WEBNOVINY) — The growth dynamics of the Slovak economy slowed last year to 3.3 percent from 4.2 percent in 2010. The Statistics Office of the Slovak Republic reported on Tuesday that GDP in Slovakia increased 3.4 percent in the last quarter of 2011. The Statistics Office thus confirmed their flash estimate from a month ago. GDP generated in Slovakia during the last three months of 2011 accounted for EUR 17.756 billion, up 5.3 percent in current prices in a year-on-year comparison. Net of seasonal influences, GDP growth swelled 0.9 percent in quarterly terms. For comparison, economic activity in Slovakia strengthened 3 percent in Q3 2011, 3.5 percent in Q2 and 3.4 percent in constant prices in Q1 2011.
Director General of the Macroeconomic Statistics Section of the Statistics Office Frantisek Bernadic said that GDP growth in Q4 2011 was surprising. “I think that all analysts predicted a lower figure,” he stated. Net taxes contributed the most to bolstering economic activity because the state collected nearly EUR 174 million in value-added tax (VAT) on public-private partnership (PPP) projects in the fourth quarter.
Foreign demand eased slightly due to weaker economic growth of Slovakia’s main trade partners. Exports grew 7.5 percent in Q4 2011 on a 1-percent decline in imports. Thus, net exports remained the key source of Slovakia’s GDP growth. As Bernadic added, cars, electronics, motor fuels and lubricants, as well as metallurgical goods dominated in exports.
The 2.4-percent drop of local demand was caused largely by a 6.4-percent fall in formation of gross capital. The weaker formation of gross capital resulted from changes in inventories. The formation of gross fixed capital was 8.4 percent higher y/y. Final consumption of the public administration lagged behind the figures from the previous year by 3.7 percent and final consumption of households was 0.4 percent weaker. Bernadic perceives the fall in final consumption of households as natural regarding the average wage decrease and growth of jobless rate reported last year.
In January, addressed bank analysts predicted the y/y growth of the Slovak economy had decelerated to 2.3 percent in the last quarter of 2011. Their forecasts for this year are even more pessimistic, representing merely 0.9 percent.
SITA
