Investment activities continued in the Slovak economy, mainly in real estate activities and industrial production

A positive pace of the investment volume has been kept for the past two years, in the current quarter it increased year-on-year by almost 17% in current prices. 14 out of 19 monitored sectors of the economy recorded more investments.

Higher growth dynamics of investment activity also continued in the 2nd quarter. The volume of investments reflected in the gross fixed capital formation reached EUR 5.8 billion, which is a year-on-year increase of 16.8% in current prices (by 5.2% in constant prices), while investment growth has been kept for the past two years.

The total gross capital formation reached the volume of EUR 5.6 billion and inventories decreased by EUR 219.2 million.

Out of the total number of monitored 19 sectors, 14 of them recorded a year-on-year investment growth in current prices. More than a quarter of funds were invested in real estate activities, investments increased by 30.5%.

A fifth of the investment volume was directed to industrial production, in which investments rose by 10% year-on-year. Out of 13 sectors, investments increased year-on-year in 8 of them, they rose by 12.1% in manufacture of transport equipment, which is also the most important sector of industrial production in terms of investing. Investments were also higher in manufacture of chemicals and chemical products by 48.4%, in manufacture of metals and metal structures by 19.8%, in manufacture of machinery and equipment by 19% and in manufacture of food, beverages and tobacco products by 16.3%.

The third highest investment volume, recording a share of 7.6%, was directed to the sector of electricity, gas, steam and air-conditioning supply, in which investments increased year-on-year by 21.1%. In the sector of wholesale, retail trade and repair of motor vehicle, investments rose year-on-year by 35.3%.

Lower investing continued in five sectors, the most significant decrease was recorded in public administration and defence; compulsory social security and health and social work activities.

In total, in the first half of 2023, the total gross capital formation reached EUR 10.1 billion, which represented a decrease of 23.4% compared to the first half of 2022. On the contrary, its sub-item, gross fixed capital formation, recorded a volume of EUR 11 billion with a year-on-year increase of 5.5%.

Out of the total number of monitored 19 sectors, 18 recorded a year-on-year investment growth. The largest amount of funds, almost 27.7%, was invested in real estate. Investment activity in this sector increased year-on-year by 33% in current prices. In industrial production, investments rose year-on-year by 12%, out of 13 sectors, investments increased year-on-year in 9. The strongest manufacture of transport equipment recorded a growth of 16.2%.