Slovakia: Economic growth stable in Q4; GDP accelerates in full year 2014
March 6, 2015
In the fourth quarter, GDP grew 2.4% over the same period of the previous year, according to official data released by the Statistical Office of the Slovak Republic (SOSR) on 6 March. The print matched both the preliminary estimate and the expansion registered in Q3. On a sequential basis, the economy grew a seasonally-adjusted 0.6% in Q4, which mirrored Q3’s result.
Q4’s expansion mainly reflected that an acceleration in domestic demand was partially offset by a slowdown in exports. Domestic demand increased 3.7% over the same quarter of the previous year, which was up from the 3.3% rise tallied in Q3. Private consumption and government spending were the main factors behind the pick-up in domestic demand. Private consumption accelerated from a 1.6% rise in Q3 to a 2.2% increase in Q4. Government consumption rose 4.0%, which marked an improvement from the 3.3% increase in Q3. Conversely, investment slowed from a 7.7% expansion to a 6.8% rise.
On the external front, exports decelerated from Q3’s 1.6% growth to a mild 0.3% increase in Q4. Imports contracted 0.2% in the final quarter of the year, which contrasted the 1.7% increase tallied in Q3. Since imports fell faster than exports, the external sector’s net contribution to overall economic growth rose from a flat reading in Q3 to plus 0.5 percentage points in Q4.
In the full year 2014, GDP expanded 2.4%, which marked a notable improvement over the 1.4% expansion registered in 2013.
Author: Cecilia Simkievich, Economist