Slovakia: GDP growth records best result since Q4 2007 in the second quarter
A second reading confirmed 17 August’s flash estimate of 9.6% GDP growth year-on-year in the second quarter, up from 0.2% in the first quarter. Q2’s reading marked the fastest growth since Q4 2007. Loosened restrictions at home and abroad were key factors behind the large growth figure. That said, a base effect also played a part.
The upturn reflected improvements in private consumption, public spending, fixed investment and exports. Household spending bounced back, growing 5.0% year-on-year in the second quarter, which marked the best reading since Q4 2008 (Q1: -5.8% yoy). Government consumption rebounded, growing 8.7% in Q2 (Q1: -1.8% yoy). Fixed investment was up 5.6% in Q2, from the 10.0% contraction logged in the prior quarter.
Exports of goods and services increased 40.0% on an annual basis in the second quarter, which was above the first quarter’s 10.0% expansion. In addition, imports of goods and services growth sped up, growing 39.6% in Q2 (Q1: +5.4% yoy).
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% fall.
Looking at H2, GDP is expected to continue growing at a brisk pace, supported by a solid expansion in domestic activity, while firming foreign demand amid the gradual removal of restrictions should support the all-important car industry. However, the less favorable base effect will see annual growth rates ebb relative to Q2.