Slovakia’s economy, dominated by automakers including Volkswagen Group, PSA Group, Kia and Jaguar Land Rover, slowed unexpectedly in the second quarter when it expanded by 1.9 percent, down from a 3.7 percent rise in the first quarter and missing analysts’ expectations of 3.3 percent growth.
The quarterly, seasonally adjusted growth of 0.4 percent given by the statistics office on Wednesday also missed analysts’ expectation of a 0.7 percent expansion – buffeted by turbulence in the global economy and a shrinking Germany economy.
“Slovakia is feeling the impact of the global slowdown and the economic stagnation in Germany, our biggest trade partner,” VUB Bank analyst Michal Lehuta said.
“Slovakia’s unexpected slowdown in the second quarter was due to the slowdown in industrial output, falling net exports and weak household consumption,” he said.
Slovakia’s data has been the biggest disappointment in central Europe as Hungary, Poland and the Czech Republic all posted strong growth, albeit slowing down from first quarter.