Slovak exports and imports reached record values in November, but the foreign trade deficit widened sharply

The foreign trade deficit reached almost EUR 824 million, which was the highest monthly deficit in the last decade. Despite the record value of the exported machinery and transport equipment, including cars, the passive November´s balance was mainly influenced by a significant increase in the value of imported natural gas and motor vehicle parts.

The total export of goods from Slovakia reached a value of EUR 9.6 billion in November 2022 according to preliminary results1), with year-on-year growth by 11.2%. The double-digit growth of exports has slowed down for the third consecutive month, despite the fact that in the last more than 10 years, domestic companies have not exported goods to foreign markets in one month with the same value as in November of this year.

The total import of goods increased by 20.5% and for the first time exceeded the threshold of EUR 10 billion, when reaching EUR 10.4 billion. Higher year-on-year growth in imports than exports was due to the deepening trade balance deficit. In November 2022, the balance of foreign trade was in deficit in the amount of EUR 823.5 million, while a year ago it was only EUR 20.2 million. All indicators of foreign trade are reported at current prices and are values including services related to the delivery of goods to the border of the exporting country2).

Of the ten sections in the export structure, eight of them showed year-on-year growth. Again, the most traded section of foreign trade – Machinery and transport equipment (SITC 7), which also includes the export of automobiles, had the most significant impact on the growth of total exports. The value of exported goods in this class was higher by 12.4% year-on-year and at the same time it was the highest in the last decade. The majority of machines and transport equipment (75%) were destined for EU markets from Slovakia.

Eight of the ten sections also showed year-on-year growth even in the structure of imports. The higher dynamics of total imports was primarily influenced by the currently second-largest import item by volume – Mineral fuels (SITC 3), which include, for example, imports of natural gas, oil and electricity. The value of imported goods in this class was higher by 73.7%, year-on-year.

In November of this year, imports of mineral fuels were approximately four times higher than in November 2020.

Parts of motor vehicles also significantly affected imports, which represented more than 10 billion. The value of imported goods in the section of Machinery and transport equipment, which includes parts of motor vehicle, increased by almost 15% year-on-year.

Seasonally adjusted foreign trade data

After seasonal adjustment 3) of the data in November 2022, the total exports of goods reached the value of EUR 8.6 billion, with a year-on-year growth of 11.4%. The total imports of goods increased by 20.4% to EUR 9.1 billion. The balance of foreign trade was in deficit in the amount of EUR 460.4 million.

Development in the first eleven months of 2022 compared to the same period in 2021

In the first eleven months of this year, the total exports of goods increased by 17.1% to EUR 94.8 billion and the total imports by 24.3% to EUR 98 billion year-on-year. The balance of foreign trade was in deficit in the amount of EUR 3.2 billion. During the same period of the previous year, the volume of almost EUR 2.1 billion was in surplus.

In the first eleven months of 2022, exports to EU member states 4) increased by 17.7% year-on-year and accounted for 80.3% of the total exports. Imports from EU Member States accounted for 62.6% of the total imports and increased by 20.5% year-on-year.

In January to November 2022, compared to the same period last year, exports to non-EU member countries increased by 14.7% and accounted for 19.7% of the total exports. Imports from non-EU member countries accounted for 37.4% of the total imports and increased by 31.4% year-on-year.

The most traded SITC section in Slovakia's foreign trade was Machinery and transport equipment with a share of 57.4% in the total exports and 44% in the total imports.