Slovakia: Economy records fastest upturn since Q4 2007 in Q2
August 17, 2021
Economic growth picked up markedly in the second quarter, with GDP increasing 9.6% on an annual basis according to a preliminary estimate (Q1: +0.2% year-on-year). Q2's reading marked the fastest increase since Q4 2007, although it was partly flattered by a base effect.
While a detailed breakdown is not yet available, the upturn likely reflected a strengthening vaccination campaign. Moreover, industrial activity picked up, particularly in the key automotive industry, and external demand conditions firmed, as merchandise export growth picked up pace in the quarter.
Meanwhile, on a seasonally-adjusted quarter-on-quarter basis, economic growth bounced back, with GDP increasing 2.0% in Q2, contrasting the previous period's 1.4% decrease.
More detailed data will be released on 3 September.
Looking at the year as a whole, GDP growth is expected to return positive, supported by a solid expansion in domestic activity, while firming foreign demand amid a gradual removal of restrictions should support the all-important car industry. However, a slower-than-expected vaccine rollout and disagreements within the governing coalition represent risks to the outlook.