Slovakia: GDP accelerates at fastest pace in two years in Q1, matches preliminary estimate
June 5, 2014
In the first quarter, GDP matched the preliminary estimate and 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 4 June. This result exceeded the 1.5% expansion recorded in Q4 and represented the largest growth rate since Q1 2012.
Economic growth was driven by an improvement in both domestic and external demand. Domestic demand increased 3.6% over the same quarter of the previous year (Q4: +1.7% year-on-year), which marked the largest expansion since Q3 2008. Total consumption rose 3.6%, which was up from the 0.8% expansion recorded in Q4. While private consumption increased 3.4% (Q4: +0.4% yoy), government consumption rose to a 4.4% expansion (Q4: +2.5% yoy). Fixed investment showed a moderate deceleration, inching down from Q4’s 4.0% expansion to 3.6% growth in Q1.
On the external front, exports expanded a strong 9.6%, which was well above the 6.6% expansion tallied in Q4. Imports rose by 10.8% (Q4: +7.4% yoy) and reached the highest growth rate since Q2 2011. As a result, the external sector’s net contribution to economic growth increased from 0.1 percentage points in Q4 to 0.5 percentage points in Q1.
A quarter-on-quarter comparison confirms the acceleration that is suggested by the annual figures; GDP rose a seasonally-adjusted 1.4% over the previous quarter, which was an acceleration over the 0.4% expansion registered Q4 and marked the highest quarterly growth rate since Q4 2009.