17.08.202107:30:00UTC+00Slovakia Economy Grows Strongly In Q2

Slovakia's economy growth improved sharply in the second quarter, mainly due to the low base effect, preliminary estimates from the Statistical Office of the Slovak Republic showed Tuesday.

Gross domestic product grew a non-seasonally adjusted 9.6 percent year-on-year after a 0.2 percent increase in the first quarter, which was revised from 0.3 percent. On a seasonally adjusted basis, GDP grew 10.2 percent year-on-year after a 0.3 percent rise in the first three months of the year, revised from 0.5 percent. Compared to the previous quarter, the economy grew a seasonally adjusted 2.0 percent in the second quarter following a 1.4 percent fall in the first three months, revised from 1.8 percent. "Slovak economy recorded the highest increase since the last quarter of 2007," the statistical office said.

The agency attributed the increase mainly to low previous basis, since there was significant economic slowdown in second quarter of 2020 caused by measures adopted by the government during the first wave of the COVID-19 pandemic.

That said, the inter-annual economic development significantly pushed the value of GDP almost up to its pre-pandemic level of 2019, the agency added. The value-added grew strongly in industry, namely in car production and manufacture of basic metals, thus largely compensating the slump caused by pandemic in second quarter of 2020. This was supported by external demand, but in comparison with previous quarters, domestic demand also contributed significantly, driven by growth in both consumer as well as investment demand.

In the second quarter of 2020, GDP fell almost 11 percent year-on-year.

Employment decreased by 0.4 percent year-on-year to 2.373 million persons. After seasonal adjustments, the overall employment decreased 0.4 percent annually, but increased 0.8 percent from the previous quarter.