The Slovak economy rose by more than 1% in the third quarter, but has significantly slowed down since the beginning of the year

Economic performance was affected mainly by the domestic demand in the third quarter. It maintained positive numbers due to the higher expenses by households and public administration but spending was not as dynamic as at the beginning of the year. Economic growth was slowed down by the slump in investments, which dropped for the first time in two years. Foreign trade did not prosper well either, the weaker export activity the balance at current prices ended in negative numbers

Gross domestic product (GDP) increased by 1.2% year-on-year (at constant prices, seasonally adjusted) in the 3^rd quarter of 2024. The dynamic economic growth from the beginning of the year, when performance rose by 3.3%, weakened significantly in the current quarter, the growth rate was the slowest in the last five quarters. The volume of GDP at current prices was higher by 3.5% year-on-year and reached almost EUR 33.7 billion. After seasonal adjustment, GDP rose by 0.3% quarter-on-quarter (compared to the 2^nd quarter of 2024) in real terms.

Download high resolution chart format PDF (103 kB) or PNG (208 kB).

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

Production method

The performance of manufacturing industries remained on the rise even in the 3rd quarter of 2024. The volume of performance measured by gross added value reached nominally EUR 30.5 billion, which was a year-on-year growth of this key component of GDP by 1.5%. However, it was the slowest growth rate in the past six quarters.

The year-on-year increase in gross added value was recorded by all 10 monitored groups of sectors. Industry, the most important sector recorded a growth of 3.5%, it contributed 30.7% to the total gross added value. Growth was mainly supported by other manufacture, repair and installation of machinery and equipment by 32.9%, manufacture of transport equipment by 4.5%, as well as manufacture of basic metals and fabricated metal structures by 7.2%. On the contrary, higher growth was dampened by the decline in one of the strongest sectors, in manufacture of machinery and equipment by 2.5%, and also in manufacture of textiles, apparel, leather and related products by 3.6%.

Performance of the second most important group of sectors, i.e. trade, transportation, accommodation and food services¹⁾ slowed down over the last year, increasing only slightly, by 0.7%.

Some smaller sectors also contributed significantly to the growth of gross added value, namely a year-on-year higher performance in professional, scientific and technical activities by 3%, in public administration by 1.5% and in financial and insurance activities by 5.7%.

Expenditure method

GDP growth by expenditure components in the 3rd quarter of 2024 was decisively affected by domestic demand, which, however, rose year-on-year at a slower pace than in the first half of the year, by only 0.9%. Higher consumption by households contributed to the positive result, they spent more by 1.5%, and public administration by 0.9%. However, both items experienced a significant weakening of growth dynamics.

The gross capital formation remained at the same year-on-year level in constant prices, due to the significant formation of inventories and lower investment activity. Growth in the volume of investments, measured by the gross fixed capital formation, stopped in the third quarter and after almost two years reached negative values, by 8% year-on-year.

Exports and imports, which were favourable in the first half of the year, again recorded year-on-year lower values in the 3rd quarter of 2024. Export of products and services (foreign demand) decreased by 0.2%, import of products and services by 0.3%. However, the volumes for imports were higher than for exports, due to which the balance of foreign trade had negative values.

GDP for the 1^st-3^rd quarter of 2024

In total, for the first nine months of 2024, GDP rose by 2.1% (at constant prices, not seasonally adjusted). The nominal volume in current prices reached EUR 96.1 billion.  

Gross value added at constant prices reached a year-on-year growth of 2%. The year-on-year increase in gross added value reached all 10 groups of sectors. The sector of industry had the most significant impact on the development of the economy by 1.5%, mainly the growth in manufacture of transport equipment by 5.1% and in manufacture of basic metals and fabricated metal products by 7.5%. The sector of wholesale and retail, repair of motor vehicles and motorcycles also achieved a performance higher by 1.8%; transportation and storage; accommodation and food services, as well as professional, scientific and technical activities; administrative services by 3.3%.

Domestic demand was higher by 4.3% year-on-year, mainly due to higher expenses in households by 2.5% and in public administration by 4.3%. Gross capital formation maintained a more significant growth by 9.8%, but its sub-item gross fixed capital formation, which is the volume of investments, recorded a decrease by 0.4% in the first nine months of the year.

The overall performance of the economy was also mainly due to positive development in foreign trade. The export of products and services (foreign demand) rose by 1.3% year-on-year and the import of products and services by 3.5%. The higher volume of exports than imports maintained a positive balance of foreign trade, its value for the 1^st- 3^rd quarter of 2024 reached a volume of almost EUR 1.7 billion in current prices.