Slovakia: GDP growth softens in Q3 on a weaker external sector
December 19, 2017
The economy continued to grow at a healthy pace in the third quarter, according to data released by the Statistical Office of the Slovak Republic (SOSR) on 5 December. GDP growth edged down to 3.3% annually, below the second quarter’s 3.7% print. The economy expanded at a slower pace on the back of a weaker contribution from the external sector.
Private consumption grew 4.0% over the same period last year in Q3 (Q2: +3.6% year-on-year)—the fastest pace since Q4 2008—amid a healthy labor market. Boosted by stronger inflows of EU structural funds, fixed investment also rebounded, swinging from a 5.4% contraction in Q2 to a notable 10.4% expansion in Q3. However, the slowdown in government consumption sharpened to a 1.4% contraction (Q2: -0.1% yoy).
On the external front, export growth came in at 3.8% in Q3 (Q2: -0.3% yoy). Meanwhile, imports expanded 5.9% following Q2’s 0.8% contraction, which translated into a weaker overall contribution to growth from the external sector.
On a quarter-on-quarter basis, the economy grew a seasonally-adjusted 0.8% in Q3, marginally below Q2’s 0.9% expansion.
Slovakia GDP Forecast
FocusEconomics Consensus Forecast panelists expect GDP growth to reach 3.2% in 2018, which is unchanged from last month’s forecast. For 2019, the panel projects that economic growth will reach 3.5%.