Economic growth in Slovakia back on target

A flash estimate from the Statistical Office today, 13 August, states that the Slovak economy grew by 4.6 percent year-on-year in the second quarter. This indicates only a slight deceleration in the tempo of growth over the first quarter of 2010, when it posted a value of 4.8 percent year-on-year.

In the second quarter, the Slovak GDP came to EUR 16.3 billion, which when accounting for seasonal influences works out at EUR 12.5 billion in current prices (up 4.9 percent year-on-year).

Following a 4.7 percent year-on-year slump last year, the outlook for this year according to the Ministry of Finance, the National Bank and various international institutions look pretty positive, with Slovakia expected to see possibly the best economic recovery in the EU this year. Local growth forecasts range from 3.2% year-on-year (Ministry of Finance) to 3.7% (National Bank of Slovakia), while the International Monetary Fund has even gone as far as to project economic growth in Slovakia at 4% in 2010.

For next year the National Bank expects a GDP growth 4.3%, while the Ministry of Finance forecasts 3.8%. Just like most of the world, last year the vibrant economic growth in Slovakia was hit by the economic crisis and a sharp drop in foreign demand, but now things are beginning to look more optimistic.