Amid high inflation and erratic energy prices, Slovakia reports unexpected economic resilience. Q2 2023 saw a 0.4% GDP growth quarter-on-quarter, with a 1.5% yearly increase. Analyst Ľubomír Koršňák of UniCredit Bank cites domestic car production as a key driver, helping to bolster trade balances. However, household consumption feels the pinch from record inflation. Marián Kočiš of Slovenská Sporiteľna bank notes a shift: pandemic savings once spurred growth, but diminished savings and negative real income now impact spending. Concerns rise externally as Germany, a crucial Slovak trade partner, reports a 0.2% economic contraction in Q2 2023. Yet, with anticipated €5 billion EU stimulus, a recession seems unlikely. Projections for Slovakia’s 2023 growth stand at 1.5%, with potential acceleration to 2% in 2024. However, upcoming parliamentary elections could sway these figures, with public finance consolidation as a major factor, as highlighted by Krošlák.
Source: spectator.sme.sk
