Analyst: Slovak Economy Finds Itself in Low-confidence Territory

Bratislava, 29 September (TASR) – Slovakia's Economic Sentiment Indicator (ESI) remains in low-confidence territory, with a year-on-year decline of 4.9 points and falling 8.6 points below the long-term average, according to analyst Tomas Bohacek of 365.bank. His comments follow the release of September data by the Slovak Statistics Office, which revealed a continued weakening in economic confidence. „Despite a partial improvement in consumer optimism, the overall data clearly indicate that the Slovak economy is operating within a zone of low confidence,” said Bohacek. He warned that even if consumers' more positive outlook were to materialise in actual spending in the coming months — which he does not expect — GDP growth would remain constrained. „We can say with certainty that the economy will not exceed 1-percent year-on-year growth this year,” he added. Bohacek also projected that household consumption may fall back into negative territory in 2025, marking a return to contraction after three years. He highlighted concerns over industrial performance, citing weakening foreign orders and rising inventories. „This could signal that companies will likely scale back production in the coming months, which will weigh on GDP growth next year. We currently forecast growth of just 0.6 percent,” he stated. According to the Statistics Office, economic sentiment deteriorated in September compared to the previous month, with the ESI falling by 3.2 points to 97.4. Pessimism deepened in two of the five components of the index — industry and services — while entrepreneurs in construction and retail, as well as consumers, showed a slightly more optimistic outlook. mf