Slovakia’s gross domestic product (GDP) increased by 1.1% year-on-year in the third quarter of 2023, backed by a strong international trade balance.

The GDP volume reached €32.2bn and was higher by 0.2% quarter-on-quarter.

The economy “was influenced mainly by the positive balance in foreign trade” while “lower domestic demand persisted, significantly supported by a subdued household consumption”, Slovak statisticians highlighted.

The country’s international trade balance ended in a surplus of €332mn in September despite a first y/y decrease in exports registered in 2023.

“The activity of strong manufacturing industries and investments remain in positive values”, statisticians also noted.

Eight out of ten sectors of the economy registered a y/y growth, led by the 4.9% growth in industry, including 16.3% growth in the manufacture of transport equipment and 25.7% growth in the manufacture of rubber and plastic products.   

UniCredit Bank analyst Lubomir Korsnak expects the economy to maintain growth in the final quarter of this year despite obstacles in the European industry and its effects on export-oriented Slovakia.   

Korsnak also noted that y/y drops in domestic demand slowed down compared to previous quarters after “household consumption began to pick up from the bottom low” and its drop softened from -3.6% to -1.8%.   

Marian Kocis of the local Erste branch expects 1.1% growth for all of 2023 and a further uptick next year around 2%.

Both analysts agreed that EU funds would stimulate the Slovak economy this year.

Overall, in the 1^st to 3^rd quarter of 2023, GDP increased by 1.1% with the nominal volume in current prices of €90.1bn.