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GDP growth slows to 3.8 percent

GROWTH in the Slovak economy, as measured by GDP, slowed to 3.8 percent in the third quarter of 2010, according to data released by the Statistics Office on December 2.

GROWTH in the Slovak economy, as measured by GDP, slowed to 3.8 percent in the third quarter of 2010, according to data released by the Statistics Office on December 2.

In the second quarter Slovakia’s GDP increased by 4.2 percent from the same quarter of the previous year, and the country’s first quarter growth was 4.7 percent higher than in 2009.

GDP grew in constant value between the second and third quarters of 2010 by 1 percent after seasonal adjustments.

Consumption by Slovak households decreased in the quarter by 0.3 percent.

“Austerity measures which were initiated in the third quarter have shown up in the numbers,” the deputy head of the Statistics Office, Štefan Condík, said as quoted by the SITA newswire.

ING Bank analyst Eduard Hagara said that the figures on domestic demand suggested a moderate revival of domestic investment, which he said was surprising given the fact that companies across the world are not using their capacities to the fullest extent.

“On the other hand, we cannot expect that investment will grow significantly faster in the future,” Hagara told SITA.

Domestic consumer demand remains weak according to Hagara because of the high jobless rate which is expected to fall only very slowly.

“Slovaks will be cautious when opening their wallets,” Hagara said, as quoted by SITA.


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