BRATISLAVA, December 6, (WEBNOVINY) – The Statistics Office of the Slovak Republic slightly revised its initial flash estimate of GDP growth in Q3 upwards by 0.1 percentage points to 3 percent. Thus, the formation of GDP slackened from the previous two quarters of this year, when the local economy bolstered 3.4 percent in Q1 and 3.5 percent in Q2.
Net of seasonal influences, GDP grew 0.8 percent in the observed period in quarterly terms. GDP in absolute figures stood at EUR 18.286 billion and grew 4.6 percent in current prices. Likewise in the two previous quarters, particularly foreign demand influenced economic growth. Exports came up by 6.8 percent in annualized terms on a 1.8-percent decline in imports. According to the statistical authority, net exports remained the main driving force of GDP growth. A 4.4-percent downswing of local demand slowed the growth dynamics.
The decrease in local demand resulted from lower final consumption expenses (-1.4 percent). Final consumption of public administration plunged by 3.3 percent and of homes by 0.9 percent. The formation of gross capital shrank by 12.1 percent, while the formation of gross fixed capital bolstered 5.9 percent. Consumption of non-profit organizations providing services to households increased 1.4 percent. Value added generated went up by 3.2 percent y/y. The 0.7-percentage point slowdown of value added growth was linked to a slump in intermediate consumption to 3.3 percent. Net taxes on products jumped 1.3 percent.
The growth dynamics of the Slovak economy is likely to slow down this year from a year ago. Last year, the Slovak GDP rose by 4.2 percent in constant prices. Bank analysts project 3-percent growth for the whole of 2011. The local economy is expected to continue decelerating next year, as well. Banks and institutions are reassessing their prognoses under the influence of deepening debt crisis and turbulence on global markets. The Finance Ministry forecasts a 1.7-percent increase in GDP next year, while the EC’s prognosis is a mere 1.1 percent.
SITA
