Slovakia: Slovak economy shifts to higher gear on resilient domestic demand
December 4, 2015
In the third quarter, GDP grew 3.7% over the same period last year, according to official data released by the Statistical Office of the Slovak Republic (SOSR) on 4 November. The print was a notch above the 3.6% growth reported in the preliminary estimate and overshot the 3.4% increase tallied in Q2. Growth in Q3 represented the largest expansion since Q4 2010. On a sequential basis, the economy grew a seasonally-adjusted 0.9% in Q3, which was above the 0.8% increase tallied in Q2.
Q3’s expansion reflected an acceleration in domestic demand, while the external sector deteriorated. Growth in private consumption accelerated to 2.7% in Q3 (Q2: +2.3% year-on-year), while government spending logged a 5.2% increase (Q2: +3.6% yoy). Gross fixed capital formation accelerated to the fastest pace since 2005 in Q3, expanding 17.3% annually (Q2: +9.6% yoy).
On the external front, growth in exports accelerated to 7.3% in Q3 (Q2: +6.1% yoy), while imports expanded a stronger 9.9% increase (Q2: +7.3% yoy). As a result, the external sector’s net contribution to overall economic growth deteriorated from minus 0.6 percentage points in Q2 to minus 1.7 percentage points in Q3.