Slovakia's GDP increased by 3.6% year-on-year in fixed prices in 4Q18, according to a preliminary GDP growth estimate published by the Slovak Statistics Office on February 14. After seasonal adjustment, GDP went up by 0.8% quarter-on-quarter and by 4% compared to 4Q17. The final figure for GDP growth and employment will be released on March 7.
In current prices, the volume of GDP in 4Q18 amounted to €23.338bn, up by 5.3% y/y. “Total employment in the reference period reached 2.438mn persons. In comparison with 4Q17 it increased by 1.7%. Seasonally adjusted total employment rose by 1.8% as compared to the 4Q17 and by 0.4% as compared to 3Q18,” said the report.
According to the analysts, a number of factors contributed to economic slowdown in 2018, such as a drop in consumer demand. “After a relatively dynamic growth in past quarters, the household consumption might have slowed down, as indicated by lower turnovers in retail, housing, restaurant activities as well as fewer car registrations,” said the Slovak Central Bank, the Slovak News Agency reporting.
“Decreasing economic confidence indicators in Europe and the slowdown of many big Eurozone economies likely had their impacts on the export-oriented Slovak economy,” said the Slovenska Sporitelna analyst Katarina Muchova, adding that probability of recession in the Eurozone is rather low and she expects Slovak GDP to increase by 3.4% in 2019. According to the UniCredit Bank Czech Republic and Slovakia analyst Lubomir Korsnak, economic growth will reach 3.2%.