Slovakia: Growth accelerates in the second quarter
September 7, 2018
Detailed national accounts data released on 7 September showed that the economy grew 4.2% year-on-year in the second quarter, revised up from the preliminary reading of 4.1%. This marks an acceleration from the first quarter’s 3.6% expansion and the fastest pace of growth since Q4 2015.
Looking at a breakdown of the data, growth in the second quarter was fueled by the external sector. Exports picked up in Q2, rising 8.0% year-on-year following a 2.4% annual expansion in Q1. Imports also climbed in the quarter, expanding 7.8% after a 3.2% rise in Q1. Therefore, the external sector made a positive contribution to growth.
Domestic demand also grew at a solid, albeit slightly slower, rate compared to the first quarter. Fixed investment growth surged to 20.4% in Q2, up from Q1’s 12.5%, thanks to rising inflows of EU funds. On the other hand, growth in private consumption weakened from 3.5% in Q1 to 2.2% in Q2 as inflation climbed from the previous quarter and wage growth slowed. Moreover, government consumption rose at a weaker pace of 2.5% in Q2 compared to 3.1% in Q1.
On a quarter-on-quarter, seasonally-adjusted basis, GDP growth in the second quarter came in at 1.1%, marginally up from the 1.0% expansion in the first quarter.