In the second quarter of this year, Slovakia's gross domestic product (GDP) will grow by 10 percent as compared to the weak second quarter of last year, according to the short-term macro-economic prognosis released by the Budgetary Responsibility Council (RRZ) on Monday. However, GDP in the second quarter was still 3 percent below the pre-pandemic level, stated the Council. "The economy's gradual recovery is in accord with the prognoses of institutions from June 2021. Nevertheless, problems with insufficient productive capacities after the crisis and a potential third wave of the coronavirus pandemic could complicate the situation in Slovakia," stated the RRZ.
Foreign demand is recovering at a slower pace due to a lack of productive capacity, especially in industry, but the lack of production inputs is having a dampening effect on household consumption in some sectors via weaker consumer imports. Household consumption is being dampened by inflation growth, too. The Slovak Statistics Office is due to release its flash GDP estimate for the second quarter of this year on Thursday, August 17.
