After slow start industrial production speeds up

The automotive industry accounted for more than one half of the growth.

The plant of the Volkswagen carmaker in Bratislava.The plant of the Volkswagen carmaker in Bratislava. (Source: Sme)

After a slow start to the year industrial production significantly accelerated in February. It grew 7.4 percent year on year compared with mediocre growth of 1.6 percent in January, the Slovak Statistics Office announced on April 11. February’s figure significantly surpassed market expectations which were oscillating around 4 percent, Boris Fojtík, analyst with Tatra Banka wrote in his memo.

The industrial sector reported significant month-to-month growth also after excluding seasonal influences, of 2.4 percent. Fojtík sees also the leap year of 2016 behind this sound result. This year February had 29 days and thus one more working day.  

The growth of industrial production in February was propelled by automotive production when carmakers and their suppliers in Slovakia manufactured 13.9 percent more than one year ago. This sector contributed by more than one half to the total growth.

Analysts of the National Bank of Slovakia indicate that it is probably the launch of the production of the new Audi Q7 which likely shields Slovakia from the impacts of the diesel gate for now, as cited by the TASR newswire.

But the biggest growth dynamics were registered in the sector of production not qualified elsewhere, up 16.5 percent. Also other traditionally strong sectors like manufacture of basic metals or machinery registered two-digit growth, of 14.4 percent and 10 percent y/y, respectively. Food producers recorded the worst result when their production shrank by 12.4 percent y/y. Fojtík ascribed this decrease to a strong comparison base from last year.

February’s growth dynamics are in line with development in neighbouring countries, when growth in the Czech Republic and Hungary was around 6 percent, Fojtík noted.

“The acceleration of the industrial production’s growth across several countries is moderately surprising with regards to the development of sentiment among European industry,” wrote Fojtík, expecting that Slovakia’s industrial sector might continue to grow by 5 percent on average.

Get daily Slovak news directly to your inbox

Theme: Industry

Read more articles by the topic

Top stories

How a Catholic charity became a voice for migrants in Slovakia

Religious organisations have added leverage in changing perceptions of foreigners and migrants, says Caritas Slovakia.

Caritas Slovakia's ‘World Without “the Other” – Migration Myths’ campaign educates Slovaks on migration in a fun and artistic way.

Secret votes and public lies

There are uncanny echoes today of Slovakia’s agonies over its choice of chief prosecutor ten years ago.

Dobroslav Trnka (left) and Jozef Čentéš (right), the candidate who was eventually selected by MPs in 2011, never got to take up the post because the then president, Ivan Gašparovič refused to appoint him for reasons that were never clearly explained.

Which are the largest law firms in Slovakia?

For the first time, the ranking also provides an overview in partial categories of law.