Slovak GDP grows by 2.7% in Q1

Slovak GDP grows by 2.7% in Q1
/ bne IntelliNews
By Albin Sybera June 7, 2024

Slovakia’s gross domestic product (GDP) registered a growth of 2.7% year-on-year and by 0.7% quarter-on-quarter in the first quarter of 2024.

It is the highest growth registered in the last eight quarters and maintains a growth rate above 2% for a second consecutive quarter.

“The growth […] at the beginning of the year was again affected by an increased domestic demand,” the country’s statisticians highlighted, adding that “it was strengthened by households and the public sector, which started to spend more again due to lower inflation”.

“All manufacturing sectors and investments remained in positive values, but they were significantly less dynamic than in the previous quarters. Both exports and imports recorded a moderate growth after the year, due to higher export volumes foreign trade remained in positive numbers,” statisticians report reads. 

The volume of GDP at current prices was up by 8% y/y, reaching €29.8bn. Although gross added value registered a growth of 2.3% y/y, it was the slowest growth rate in the past five quarters, pulled down by weak industrial growth.

Domestic demand was up by 4.1% y/y after four quarters of stagnation. “With the fall in inflation, households began to spend more again, their consumption was higher by 3.6%.”

Public administration consumption increased by 6.5%, the highest growth seen in the last three quarters. Gross capital formation was up by 2.8% y/y after a year of decline. The volume of investments increased by 1.7% y/y, weakening in comparison to the previous six quarters.