BRATISLAVA, December 2, (WEBNOVINY) – Growth of Slovakia’s GDP slowed down to 3.8 percent over the third quarter of this year, based on data released by the Statistics Office of the Slovak Republic, which slightly revised its flash estimate from November upwards by 0.1 percentage points. In Q2, the local economy grew 4.2 percent following a 4.7-percent growth in Q1. Net of seasonal influences, the volume of GDP grew 1 percent from Q2. In annual terms, GDP in the third quarter went up by 5.9 percent in current prices.
The structure of the economic growth in the monitored period was influenced by higher foreign demand, which bolstered in annual terms. Exports rose 14.8 percent on a 16.6-percent growth in imports. Director General of the macroeconomic statistics departments at the Statistics Office of the Slovak Republic, Frantisek Bernadic, assumes that foreign demand will be one of crucial factors for the subsequent development of GDP. As he told Thursday’s press conference, the estimated GDP growth at about 4 percent seems to be realistic.
ING Bank analyst Eduard Hagara sees only a mild recovery of investment in the local demand, which is a slightly positive surprise since companies worldwide do not use their capacity to the fullest extent. On the other hand, based on this fact, it cannot be expected that growth of investment would speed up considerably in the coming period, explains Hagara. Slovenska Sporitelna analyst Maria Valachyova opines that investment and inventory will be the driving force of the y/y growth in GDP at least in the next two quarters. Consumer demand remains weak under high joblessness. Although it can be assumed that the private sector will continue to hire new staff, the unemployment will shrank only slowly due to the planned layoffs in the public administration. “Slovaks will likely be very cautious with spending, predicts Hagara.
Added value constituted EUR 15.946 billion of the GDP in Q3. Collection of net taxes on products higher by 2.9 percent also contributed to the creation of GDP. Average GDP generated in Q1-Q3 reached EUR 48.886 billion, up 4.5 percent in current prices and 4.2 percent in constant prices in a year-over-year comparison.
SITA