Slovakia: Strong export growth boosts Q1 GDP
June 8, 2011
In the first quarter, GDP expanded 3.5% over the same quarter the previous year, growing at the same pace as in the fourth quarter. The result confirmed the flash estimate released by the Statistical Office of the Slovak Republic (SOSR) in May. In seasonally adjusted terms, GDP rose by 1.0% quarter-on-quarter (Q4 2010: +0.9% qoq). The Q1 print reflected stronger external demand, while the contribution of domestic demand to GDP growth was negative in the first quarter. Fixed investment increased only 1.2% in Q1, down from growth of 10.6% recorded in the fourth quarter. On the other hand, private consumption swung from growth of 0.5% in the fourth quarter to a 0.1% contraction in the first. Exports of goods and services expanded 15.8% in the first quarter (Q4: +14.3% year-on-year) and imports added 11.3% (Q4: +13.5% yoy). Due to exports outpacing imports as well as positive net trade, the net contribution from the external sector to overall economic growth increased from plus 2.1 percentage points in the fourth quarter to plus 5.1 points in the first. The Central Bank expects GDP to grow 3.6% in 2011 and 4.7% in 2012.