The Slovak economy kept its growth up to 2%, but it increased the slowest in the last year

In the second quarter, economic performance was mostly supported by domestic demand, which grew at a faster pace than at the beginning of the year after last year's declines. It was strengthened by the continuing higher rate of spending by households and the public sector. Exports and imports recorded faster growth, investment activity was the weakest in the last two years.

Gross domestic product (GDP) rose by 1.9% year-on-year (in constant prices, seasonally adjusted) in the second quarter of 2024, it was the slowest pace in the last four quarters. In the previous three quarters, economic performance increased at the level of 2%, and it was significantly above this limit even at the beginning of this year (by 2.7%). The volume of GDP at current prices increased by 6.5% year-on-year and reached EUR 32.4 billion. After seasonal adjustment, GDP increased by 0.4% quarter-on-quarter (compared to the 1st quarter of 2024) in real terms.

Download high resolution chart format PDF (70 kB) or PNG (133 kB).

According to the ESA 2010 methodology, GDP is calculated in three ways (production method, expenditure method, income method). Considering the available sources of information, the production method is decisive in the SR.

Production method

Manufacturing sectors kept their good performance even in the 2nd quarter of 2024, the volume of performance measured by gross value added in nominal terms reached EUR 29.4 billion, which represented a year-on-year growth of this key component of GDP by 2.1%. However, it was the slowest growth rate in the last six quarters.

Year-on-year increase in gross added value was recorded by all 10 monitored groups of sectors. The most important industry recorded an increase of 1.5%, in the 2nd quarter of 2024 it represented the total added value of 22.3%. The increase was mainly supported by double-digit rise in manufacture of food, beverages and tobacco products by 18.9% and in manufacture of wood and paper products, printing by 21.7%. On the contrary, higher growth was hampered by a decrease in manufacture of coke and refined petroleum products by 7.9%, as well as in manufacture of machinery and equipment not elsewhere classified and in manufacture of computer, electronic and optical products, both by 16.7%.

Performance in the second most important group of sectors, i.e. trade, transport, accommodation and food and beverage service activities 1) increased by 2.7%, mostly due to higher growth in transportation and storage by 6.2%.

Smaller sectors significantly contributed to the growth of gross added value, i.e. higher performance in professional, scientific and technical activities by 3.9%, in real estate activities by 3.2%, in public administration by 1.6%, information and communications by 4.5% and in construction by 2.2% year-on-year.

Expenditure method

The improvement of expenditure items continued in the 2nd quarter of 2024. GDP growth was decisively the result of increasing domestic demand, which reached a higher year-on-year growth rate of 5.4% in the current quarter. Decreasing inflation offered better opportunities for spending of households, they increased their consumption by 2.5%. Public administration also increased the consumption with a significant growth of 4.8%.

Gross capital formation increased by 15.4% at constant prices at a double-digit rate year-on-year, due to the significant changes in inventories and lower investment activity. The volume of investments measured by the gross fixed capital formation kept its growth in the second quarter, by 0.7% year-on-year, but investment had the weakest dynamics in the last eight quarters.

Both exports and imports, which started up again this year, recorded year-on-year higher values and accelerated growth rates in the 2nd quarter of 2024. Export of products and services (foreign demand) increased by 2.5%, import of products and services by 6%. Higher volumes of exports than imports continued, which kept the balance of foreign trade in positive values, which was EUR 638 million in current prices.

GDP for the first half of 2024

In total, for the first half of 2024, GDP increased by 2.3% (in constant prices, not seasonally adjusted). The nominal volume in current prices reached EUR 62.2 billion.

Gross value added in constant prices reached a year-on-year growth of 2.2%. A year-on-year increase in gross value added was recorded in all 10 groups of sectors. The sector of industry had the most significant impact on the development of the economy with growth of 0.9%, supported mainly by growth in manufacture of metals and metal products by 7.9% and in manufacture of transport equipment by 5.6%. The group of sectors - wholesale and retail, repair of motor vehicles and motorcycles; transportation and storage; accommodation and food and beverage service activities also contributed to the overall growth of added value by increasing performance by 2.2% and construction by 1.7%.

Foreign demand (export of products and services) rose year-on-year in the first six months by 2.1% and import of products and services by 4.5%. Faster export growth maintained a positive balance of foreign trade, the value of which in the first half of 2024 reached a volume of almost EUR 1.6 billion in current prices.

The more significant growth of domestic demand, by 4.7% year-on-year, was mainly due to the effect of again higher final consumption in households by 3%. Public administration also recorded an increase in expenditures by 5.6%. The gross capital formation was significantly higher by 10%, the gross fixed capital formation, which is the volume of investments, maintained its growth in the first six months of the year, but significantly more moderately, by 1.2%.