Slovakia: Economic growth accelerates in Q2 on strong domestic demand
September 4, 2015
In the second quarter, GDP grew 3.2% over the same period last year, according to official data released by the Statistical Office of the Slovak Republic (SOSR) on 3 September. The print matched the preliminary estimate and slightly overshot the 3.1% increase tallied in Q1. Growth in Q2 represented the fastest expansion since Q4 2010. On a sequential basis, the economy grew a seasonally-adjusted 0.8% in Q2, which matched the result observed in Q1.
Q2’s expansion mainly reflected an acceleration in domestic demand, while the external sector deteriorated. Growth in private consumption accelerated to 2.7% in Q2 (Q1: +1.5% year-on-year), while government spending picked-up to a 4.1% increase (Q1: +1.6% yoy). Gross fixed capital formation accelerated to a 14-quarter high in Q2, expanding 10.0% (Q1: +6.6% yoy).
On the external front, growth in exports was stable at Q1’s 4.4% in Q2, while imports accelerated to a 6.0% increase (Q1: +4.3% yoy). As a result, the external sector’s net contribution to overall economic growth swung from plus 0.5 percentage points in Q1 to minus 1.1 percentage points in Q2.