BRATISLAVA, September 6, (WEBNOVINY) — The year-over-year growth rate of the Slovak economy slowed down in the second quarter of this year to 3.3 percent. The Statistics Office on Tuesday confirmed its flash estimate of the gross domestic product (GDP) development from August of this year. The year-on-year growth of the Slovak economy thus decelerated in Q2 by 0.2 percentage points from Q1. However, in quarterly terms the growth dynamics of economic activity in Slovakia is still solid at 0.9 percent, the same as in the previous quarter.
The economic development was influenced by growing foreign demand and a decline in local demand, the Statistics Office stated in the report. Exports of goods and services rose 12.4 percent on 9-percent growth of imports. Local demand was 0.8 percent lower. Final consumption of the public administration decreased 4.3 percent. Final consumption of households remained at an unchanged level from a year ago. Formation of gross capital grew 0.1 percent, on a 6.2-percent growth of gross fixed capital and a 1.6-percent growth of consumption of non-profit institutions serving households.
ING Bank analyst Eduard Hagara commented on the results that in particular exports supported the economy, maintaining a double-digit growth, while local demand continues to lag behind. Only investment activity increased, while a slowdown of the global growth is a sign that such growth will not last. He added that the government has been reducing spending, while the situation on the labor market has not improved enough for Slovaks to start spending more.
Considering the generated gross domestic product, added value represented EUR 15,529 million, up 2.8 percent y/y.
In constant prices, GDP in Q2 rose 5.3 percent to EUR 17.131 billion. In H1, GDP production reached EUR 32.963 billion. In current prices, the volume of GDP swelled 4.9 percent, In constant prices, the y/y growth of GDP decreased by 1 percentage point to 3.4 percent.
The Slovak economy is expected to grow at a slower pace than originally predicted this year. The Finance Ministry has decreased its estimate by 1 point to 3.4 points, while bank analysts have revised downward their estimate from 3.6 percent to 3.1 percent. The Statistics Office expects 3-percent GDP growth this year.
SITA