THE SLOVAK economic output was 3.5 percent larger in the first quarter of 2011 compared to the same quarter last year, according to inflation-adjusted data released by the Statistics Office, which confirmed its earlier May 2011 estimates.
Nominal GDP in the first three months of 2011 reached €15.83 billion in current prices, 4.5 percent more than the first quarter of 2010.
Overall growth was fuelled mainly by foreign demand, the SITA newswire reported.
Slovakia’s export of products and services grew by 15.8 percent in the quarter, which was 2.5 percentage points less than in the first quarter of 2010. Imports grew by 11.3 percent.
Total domestic demand fell by 0.2 percent year-on-year, mainly due to a 2.5-percent drop in public administration consumption and a 0.1 percent drop in household consumption.
“From the point of view of the structure [of GDP] it can be seen that the economic growth of Slovakia continues to be driven mainly by exports,” Eduard Hagara, an ING Bank analyst, told SITA when commenting on the statistics.
Domestic demand is lagging behind other drivers of economic growth and Hagara attributed this to the fall-off in government spending as well as a slowdown in investment growth.
“The more significant growth of investment in the previous months probably reflected some catching-up of investment for renewal of technologies, which had been neglected during the crisis, rather than an inflow of new investment,” Hagara told SITA.
13. Jun 2011 at 0:00 | Compiled by Spectator staff