Slovakia GDP per capita (EUR)

GDP growth moderates in

According to a preliminary release, year-on-year GDP growth moderated slightly in Q4, coming in at 1.1% (Q3: 1.4%). This brought the 2022 growth rate to 1.7%. According to the press release, private consumption and investment were the main drivers of growth in Q4. Furthermore, over the same period, real GDP exceeded its pre-pandemic levels. The full breakdown will be released on 7 March.

On a seasonally adjusted quarter-on-quarter basis, growth remained stable at 0.3%.

The economy is set to lose further steam in Q1 this year, as high inflation and rising interest rates weigh on private consumption and fixed investment.

Giving their view on the 2023 outlook, analysts at the EIU said:

“The only component of GDP set to expand is government consumption, which we expect to grow by 0.5% in 2023. This figure only captures previously green-lit investment projects and initiatives to front-load state-sponsored spending before lending interest rates rise significantly. Spending on Ukrainian refugees and EU funds disbursements will support fiscal and corporate expenditure.”