Slovakia: GDP contracts at fastest pace since Q4 2009 in Q1
May 15, 2020
According to a preliminary GDP estimate, the economy contracted in the first quarter, with GDP decreasing 3.9% (Q4: +2.1% year-on-year) as the Covid-19 pandemic and its associated confinement measures delivered a heavy blow. Q1’s reading marked the largest contraction since Q4 2009. On a seasonally-adjusted quarter-on-quarter basis, GDP declined 5.4% in Q1, contrasting Q4's 0.6% expansion. Q1's reading marked the sharpest drop since Q1 2009.
While a detailed breakdown is not yet available, coronavirus containment measures likely hampered output in the key automotive industry as well as in several service sectors. Moreover, the unfavorable global trading environment likely severely constrained the external sector in the period.
More detailed data will be released on 5 June.
Author: Hanna Andersson, Economist