Slovakia: Economy slows in second quarter
September 6, 2011
In the second quarter, GDP expanded 3.3% over the same quarter the previous year, below the 3.5% increase tallied in the first quarter. The result confirmed the flash estimate released by the Statistical Office of the Slovak Republic (SOSR) in August. In seasonally-adjusted terms, GDP rose by 0.9% over the previous quarter (Q1: +1.0% qoq). Fixed investment increased 6.2% year-on-year in Q2, up from the 1.2% growth recorded in the first quarter. On the other hand, private consumption was unchanged in the second quarter, contrasting a 0.1% contraction in the first. The slowdown in economic growth mainly reflected weaker external demand. Exports of goods and services expanded 12.4% in the second quarter (Q1: +15.8% year-on-year) and imports added 9.0% (Q1: +11.3% yoy). Due to a slowdown in export growth, the net contribution from the external sector to overall economic growth remained positive but decreased from plus 5.1 percentage points in the first quarter to plus 4.0 points in the second. The Central Bank expects GDP to grow 3.6% in 2011 and 4.7% in 2012.