The Slovak economy ended the year 2022 with an increase by 1.7%, but it progressed the slowest in the last quarter

The growth of the economy in the last three months of 2022 was caused by the positive result of the majority of the 10 monitored sectors, trade and transportation were the most successful. In total, for the entire year 2022, GDP growth was supported by significant household expenditures and by the growing investment activities.

Gross domestic product (GDP) in the 4th quarter of 2022 increased by 1.1% year-on-year (at constant prices, not seasonally adjusted). The Slovak economy maintained its growth, but its growth rate was the lowest in the last seven quarters. The volume of GDP at current prices was higher by 9.3% year-on-year and reached EUR 28.3 billion. Quarter-on-quarter (compared to the 3rd quarter of 2022) after seasonal adjustment, GDP was higher by 0.3% in real terms.

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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 SR.

Production method

The performances of individual industries were more moderate than in the 3rd quarter. Gross added value reached EUR 25.1 billion, which represented the growth of this key component of GDP by 1.2%. Industry performance exceeded pre-pandemic levels (Q4 2019) by 1%.

In total, out of the 10 sectors, the year-on-year increase in gross added value reached 6. This result was mainly influenced by the growth of the second most important sector, wholesale, retail; transportation and storage; accommodation and catering services by 6.6% year-on-year. Of this group, trade rose significantly by a fifth, transportation increased by more than 8%.

The year-on-year higher performance of professional, scientific and technical activities also had a positive impact on GDP; administrative services by 3.9% and also information and communication by 1.6%.

Industry, the sector with the largest one-quarter share in the Slovak economy, decreased its performance by 0.4% year-on-year. Even the higher growth of the two strongest components – manufacture of motor vehicles by 16.3% and manufacture of basic metals and fabricated metal products by 14.7% - could not reverse its balance.

The year-on-year decrease was recorded in financial and insurance sector by 6.9% and in real estate activities by 1.6%.

Expenditure method

The performance of economic activity was also positive in the 4th quarter of 2022. In the last quarter, the economy was mainly driven by domestic demand, which recorded the highest volume values and reached an increase by 6.3%. This was influenced by the growth of household consumption by 4.7%, which persisted despite high inflation. The volume of corporate investments in constant prices expressed by gross fixed capital reached the highest values in three years, increasing by almost 10% year-on-year.

Foreign demand (exports) rose, reaching an increase by 2.6% in the 4th quarter of 2022, however, due to higher import growth, foreign trade ended with a negative balance and thus negatively affected GDP.

GDP for the entire year of 2022

In summary, for the entire year of 2022, GDP reached a nominal volume of EUR 107.7 billion. At constant prices (not seasonally adjusted), it rose by 1.7%. At the same time, the performance of the economy was higher by 1.2% than in the pre-pandemic period (comparison with 2019).

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In summary for the year 2022, the added value reached a year-on-year growth by 1.4%, a total of 10 sectors had a higher year-on-year performance in 8. The most significant positive impact on the development of the economy was the growth of sectors covering trade, transportation with storage, also accommodation and catering services by 7.5%, as well as an increase in public administration, defense and social security; education; healthcare and social assistance by 1.8%. The positive result of the economy was also supported by a growth of 1.1% in real estate. However, the performance of the economy was dampened by a 1.2% year-on-year decline in the major industry.

The overall performance of the economy was mainly supported by the growth of domestic demand by 3.6%, influenced by the increase in the final consumption of households by 5.2% and by the growth of investments by 6.5%. Expenditure in public administration was lower by 3.2% year-on-year. Exports at the annual level increased by 1%, imports by 3%.