Analysts: Industry Still Struggling, Outlook Cautiously Optimistic for Late 2025

Bratislava, 10 July (TASR) – Slovakia’s industrial growth will remain subdued this year due to lingering effects of the energy crisis — which has impacted Slovak businesses more severely than in some other EU countries — and the ongoing transformation of the European automotive sector, UniCredit Bank analyst Lubomir Korsnak claimed in response to the latest industrial production data released by the Statistics Office. As the year progresses, however, Korsnak believes industry may begin to benefit from the European Central Bank’s looser monetary policy, which should gradually stimulate demand for investment goods across Europe. Toward the end of the year — or more likely in 2026 — the European defense industry could also receive a positive boost, Korsnak added. „Slovak industry may benefit indirectly, primarily as part of supply chains,” he said. Still, sentiment within the Slovak industrial sector remains low. „Industrial confidence fell again in June, hitting a 16-month low, suggesting that a meaningful recovery in production before summer is unlikely — apart from a possible technical rebound after a below-average May,” Korsnak noted. He added that business sentiment is slowly improving among Slovakia’s key trading partners, where conditions appear to be recovering. However, the positive effects on Slovak industry could be limited by competitiveness issues and structural constraints. Marián Kocis, analyst at Slovenska sporitelna, agreed that the sector continues to face uncertainty. „Industrial confidence remains volatile and will continue to be shaped by economic and geopolitical uncertainty. We expect production results to stay uneven, with a tendency toward negative figures, although the second half of the year may bring more positive outcomes,” he said. He concluded that low demand remains the key barrier to sustained industrial recovery. Future growth will largely depend on the recovery of the European economy — particularly Germany's — which could stabilize export orders and improve demand conditions. mf