The dynamic growth of Slovakia's economy accelerated moderately in the second quarter of this year, when it grew 9.2 percent in real prices. According to a flash estimate of the Statistics Office, GDP amounting to SKK 449.3 billion was generated from April to the end of June, which means 11.3 percent growth in current prices. In the first quarter of this year, Slovakia's economy grew 9 percent in real prices, as shown by Statistics Office data.
The accelerated GDP formation in Q2 was linked to the growth of added value in industrial manufacturing, mainly in the production of machines, electrical devices and means of transport. In terms of consumption, foreign demand and continued increase in local demand was the driving force behind Slovakia's economic growth. Cleared of seasonal influences, the GDP in fixed prices was SKK 345.5 billion, which is an increase of 9.7 percent y/y. Slovak economic growth in the second quarter was a little behind analysts' expectations. "The lower rate, compared with our initial estimate, was probably related to lower growth dynamics on the production side of economic activity in May and June, which resulted in weaker-than-expected export performance in those months," stated VUB Bank analyst Martin Lenko.
The Slovak economy should maintain its high growth rate for the rest of the year, although it might be slower than in the first two quarters of this year.
The GDP of the European Union increased by 2.8 percent y/y in the second quarter of this year. Slovakia reached the second highest growth rate after Latvia, whose economy improved by 11.3 percent in the second quarter of 2007.
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