Analysts: Slovak Industry Expected to Stay in Red Also During Summer (2)

Bratislava, 8 August (TASR) – Slovakia’s industrial sector is expected to remain in negative figures during the summer, with no significant signs of recovery for now, UniCredit Bank analyst Lubomir Korsnak stated in his commentary on June’s industrial production data released by the Statistics Office on Friday. „A positive sign is that sentiment among Slovakia’s key trading partners has finally bounced back from the bottom. However, the positive effects of recovering external demand may be held back by a partial loss of competitiveness in parts of the domestic industry, as well as by its structure,” said Korsnak. The analyst added that domestic industrial growth will likely remain subdued for the rest of the year due to the lingering impact of the energy crisis, which has driven up energy prices for Slovak businesses more than in some other EU countries. The ongoing transformation of the European automotive industry is also a contributing factor. Korsnak noted that the recent cut in tariffs on car exports from Europe to the US could ease the decline in car production destined for the American market. However, this will likely only soften the downturn, not reverse it. „There could be a positive boost towards the end of the year or more likely next year in the European defence industry. Slovak manufacturers could benefit indirectly from this, mainly as part of the subcontracting chain,” Korsnak said. Marian Kocis, analyst at Slovenska sporitelna, pointed out that “the new trade agreement with the US, which reduced car tariffs from 27.5 percent to 15 percent, will offer some relief to a key sector of the Slovak industry. On the other hand, the situation is expected to remain volatile, as the second half of the year may still reflect effects stemming from efforts to pre-empt the tariff changes earlier this year, particularly in Q1.” Tomas Bohacek, analyst at 365.bank, added that Slovak industrial production remains heavily dependent on a narrow group of sectors. In the absence of broader growth, the economy becomes more vulnerable to external shocks. „German industry has reported its lowest performance since the pandemic. Given our close trade links, we do not expect a recovery before next year,” Bohacek concluded. According to the Statistics Office, Slovakia’s industrial production in June 2025 fell by 3.6 percent year-on-year. After seasonal adjustment, production declined by 1.8 percent compared to May 2025. mf/mcs