Slovakia: Growth accelerates in Q2
August 14, 2018
The Slovak economy gained steam in the second quarter. According to preliminary data released by the Central Statistics Office (KSH) on 14 August, the economy expanded 4.1% annually in Q2, accelerating from Q1’s 3.6% growth and marking the best reading in two-and-a-half years. Meanwhile, total employment increased 2.1% over Q2 2017 and 0.5% compared to Q1 2018.
Strengthening growth in industrial production, positive business confidence and favorable financing conditions likely buttressed fixed investment, which should have also benefited from rising inflows of EU funds. Moreover, falling unemployment should have translated into healthy consumer spending, while the external sector performed solidly, with exports expanding strongly throughout the quarter.
On a quarter-on-quarter basis, GDP growth in the second quarter came in at 1.0%, matching Q1’s figure. More detailed data will be released on 7 September.
Slovakia GDP Forecast
FocusEconomics Consensus Forecast panelists expect GDP growth to reach 3.5% in 2018, which is unchanged from last month’s forecast. For 2019, the panel projects economic growth will moderate to 3.2%.