Slovakia GDP per capita (USD)

GDP grows at softest pace since Q1 2021 in Q4

GDP growth edged down to 1.1% year on year in the final quarter of 2022, from 1.4% in the third quarter. Q4’s reading marked the worst reading since Q1 2021.

Private consumption accelerated to 4.7% year-on-year in the fourth quarter, which marked the best reading since Q1 (Q3: +3.0% yoy). Public consumption contracted at a milder rate of 2.0% in Q4 (Q3: -2.1% yoy). Meanwhile, fixed investment growth hit an over five-year high of 9.8% in the fourth quarter (Q3: +8.2% yoy).

Exports of goods and services growth moderated to 2.6% in Q4 (Q3: +8.8% yoy). Conversely, imports of goods and services growth sped up to 8.0% in Q4 (Q3: +6.9% yoy), marking the best performance in a year.

On a seasonally adjusted quarter-on-quarter basis, economic growth was unchanged at 0.3% in Q4.

On the outlook, analysts at the EIU commented:

“We expect the Slovak economy to experience a period of stagnation in 2023 […]. Falling consumption spending will result from continued inflationary pressures […]. Falling real wages will be compounded by rising interest rates […]. Investment spending will also weaken significantly, as increased political instability curtails EU funds disbursement and monetary tightening limits capital expenditure.”