Slovakia: Economy advances at faster pace than previously estimated
December 2, 2010
In the third quarter, gross domestic product (GDP) expanded 3.8% over the same period last year. The result was down from the 4.2% expansion registered in the second quarter. However, the reading was revised upwards from the 12 November flash estimate that reported economic growth of 3.7%. The result reflected strengthening domestic demand while external sector weakened. Private consumption declined 0.3%, following on the 1.4% contraction recorded in the second quarter. On the other hand, gross fixed investment expanded 4.8%, up from a 1.8% increase in the second quarter. Exports of goods and services added 14.8% year-on-year, down from the 16.1% growth recorded in the second quarter. Meanwhile, imports grew 16.6%, up from the 16.0% expansion in the second quarter. As a result, the net contribution from the external sector to overall growth fell from a 3.7 percentage-point contribution in the second quarter to 0.8 percentage points in the second. A quarter-on-quarter analysis corroborates the slowdown suggested by the annual figures, as the economy added a seasonally adjusted 1.0% over the previous quarter (Q2: +1.2% qoq). The Central Bank currently forecasts the economy to grow 4.3% this year and to decelerate to 3.3% in 2011.