Slovakia: Economic activity continues to slow in the second quarter
September 6, 2012
In the second quarter, GDP expanded 2.8% over the same period last year, which was below the 3.0% rise tallied in the first quarter. That said, the print overshot the 2.7% rise initially reported in the flash estimate released by the Statistical Office of the Slovak Republic (SOSR) on 14 August. The slight slowdown seen in Q2 was mainly caused by deteriorating domestic demand, whereas the external sector improved. Private consumption fell 0.3% in the second quarter, which follows the 0.1% drop seen in the previous period. Government consumption contracted 2.1% in the three months to June, contrasting the 0.4% increase tallied in Q1. Finally, fixed investment declined 1.1% (Q1: -3.9% year-on-year). Exports of goods and services expanded 8.9% in the second quarter, up from the 6.0% increase registered in the first quarter, while imports rose 3.2% (Q1: +2.1% yoy). As a result, the external sector's net contribution to overall economic growth improved from 3.9 percentage points in the first quarter to 5.5 percentage points in the second. A quarter-on-quarter comparison corroborates the slight deceleration suggested by annual data as GDP rose a seasonally adjusted 0.7% over the previous quarter, down from the 0.8% increase recorded in Q1. The Central Bank expects GDP to grow 2.5% this year. In 2013, monetary authorities see GDP rising 3.1%.