Slovakia’s gross domestic product (GDP) increased by 1.9% year-on-year in the second quarter of this year, down on the 2.7% growth in the previous quarter. GDP increased by 0.4% quarter-on-quarter in real terms.

“Economic performance was mostly supported by domestic demand, which grew at a faster pace than at the beginning of the year after last year’s declines,” Slovak statisticians highlighted, noting “the continuing higher rate of spending by households and the public sector".

Domestic demand grew by 5.4% in Q2, while household consumption increased by 2.5% amid easing inflation. The 4.8% growth in the public sector consumption also contributed to the overall  GDP growth.

“Exports and imports recorded faster growth” and “investment activity was the weakest in the last two years,” statisticians also noted.  The volume of GDP at current prices increased by 6.5% y/y, reaching €32.4bn. In the first half of this year, GDP increased by 2.3% at nominal volume of €62.2bn.

Statisticians also reported on retail turnover accelerating its growth to 5.7% year-on-year in July, marking the seventh consecutive month of retail growth.

“The overall result was most affected by its double-digit increase in specialized stores of other goods including also stores of shoes, textiles, drugstores and pharmacies, as well as the continued growth in internet sales,” the report sums up.

Sales in specialized stores increased by 12.4% y/y. The booming growth in online sales of 21.6% is affected by the change in the structure and number of businesses included in the filed, statisticians noted. The most impactful sector of large hyper and supermarkets registered growth of 4.9%.  

The negative effect came from sales of fuel at gas stations which registered a drop of 9%, and from the sales at stores with ICT equipment, which fell by 12.7%.