The Slovak economy has not had a good first half of this year and is currently only working with minimal growth. Its outlook for the coming period, which affects problems in international trade, the slow growth of the European economy and the expected further consolidation in Slovakia, was also uncertain.
The Statistical Office (SO) of the Slovak Republic informed on Friday that the gross domestic product (GDP) of Slovakia increased by 0.6 %year -on -year in the 2nd quarter. The growth rate was the lowest in the last ten quarters, with 1 % of the second quarter in a row. In summary in the 1st half -year, GDP increased at constant prices by 0.7 %.
“The Slovak economy has not experienced the best first half of the year, when growth significantly lagged behind expectations, while the slowdown is also noticeable on the quarter -on -quarter results. Poor performance in the first half of the year, the impact of consolidation measures and external threats pushing the growth estimate of the Slovak economy in 2025 below 1 %, That such a growth rate for catching up with richer countries in the EU is not enough.
He recalled that Slovakia is a small and open economy sensitive to the development of global business relationships and the risks of escalation of disputes in this area. “The new US trade agreement, which reduced cars from 27.5 % to 15 %, will certainly provide a release, but the challenge remains and we will see the main impacts in 2026. In addition, even in the second half of the year, the effects resulting from the effort to overtake the introduction of duties in the first half of the year, especially in the first quarter, may be reflected, ”said Kočiš. One of the fundamental factors of future growth would be the revival of the European economy, especially Germany.
“The Slovak economy works in minimal growth fashion. While consumption, thanks to the stronger labor market, holds the economy over zero, but problematic developments in the main industries reduce its potential,“Tomáš Boháček pointed out the analyst 365.Bank.
According to him, the outlook remains very cautious, influenced by both persistent uncertainty in foreign trade and new consolidation measures. “If they re-deteriorate the business environment and were primarily a proinflative nature, the subsequent deterioration of the labor market will also limit the consumption of households and the economy will remain in the ‘green zero’, which will increase the pressure on further consolidation measures in the middle and long horizon,” he said.
In the coming months, a positive impulse for the economy could bring the effects of the released monetary policy of the European Central Bank (ECB), which should support investment and consumption, expects Kočiš. The economy will also flow into the economy this year and next year funds from the renewal plan, but it is necessary to use effectively.
“Due to poor performance in the first half of the year, external threats and ongoing consolidations, we have adjusted the estimate of the growth of the Slovak economy for this year to 0.7 % year -on -year. Next year we expect the Slovak economy to grow at 1.3 %”Added the analyst.
