Slovakia: GDP growth picks up slightly in Q2
September 5, 2017
The economy made some gains in the second quarter, according to data released by the Statistical Office of the Slovak Republic (SOSR) on 5 September. GDP growth edged up to 3.3% annually, above the first quarter’s 3.1% print. The economy expanded at a faster pace on the back of a rise in domestic demand underpinned by strong private consumption.
Led by a healthy labor market, private consumption grew 3.6% in Q2 (Q1: +3.4% year-on-year), the fastest pace since Q4 2008. Also, the slowdown in government consumption eased to a 0.1% contraction (Q1: -0.7% yoy). However, fixed investment declined significantly, slumping a notable 6.7% (Q1: +0.9% yoy) as ongoing worker shortages derail the auto industry’s expansion.
On the external front, export growth plummeted to 0.2% in Q2 (Q1: 8.6% yoy), also caused by the slowdown in the all-important automotive industry. Meanwhile, imports contracted 0.2% following two years of growth and a stellar expansion in Q1 (Q1: 8.3% yoy).
On a quarter-on-quarter basis, the economy grew a seasonally-adjusted 0.8% in Q2, which matched the previous quarter’s print.
Author: Nihad Ahmed, Economist