Analyst: Slovakia's GDP Growth Slightly Accelerated in 3Q25, But Remains Subdued

Bratislava, 14 November (TASR) - The Slovak economy saw its growth rate accelerate slightly in the third quarter of this year, but the growth remains subdued and is below the average for the European Union (EU), the eurozone and also the neighbouring Czech Republic and Poland, said UniCredit Bank analyst Lubomir Korsnak on Friday when commenting on the preliminary GDP figures for 3Q25, published by the Statistics Office earlier in the day. According to Korsnak, the reasons can be found in the structure of the Slovak economy, which was more exposed to the increase in US tariffs than other European economies, but also in domestic fiscal policy, with the higher tax burden on the private sector reducing domestic activity and dampening economic growth. "It stems from the Statistics Office's commentary that GDP growth in the third quarter was mainly driven by net exports, in other words, growing trade-balance surpluses. These are primarily the result of slower growth in domestic demand, which dampens pressure on foreign imports; and, conversely, a partial recovery in external demand, which had a positive impact on exports. The monthly data show that car exports, which had to deal with higher US import duties, didn't initially record a decline. The relatively significant drop in car exports to the US market was probably fully compensated for by higher exports to the 'domestic' European market," explained the analyst. "We aren't changing our original assumption that Slovakia's GDP growth might gradually recover in the upcoming quarters. However, we still don't expect a more rapid acceleration at this time," stated Korsnak. Slovenska sporitelna macroeconomic analyst Matej Hornak commented on the latest figures released by the Statistics Office in a similar manner, stating that the current estimate for end-of-year growth remains unchanged for now. "The development of the economy in the third quarter was thus in line with our current expectations, although with some surprises in the structure of growth. We revised the estimate for end-of-year growth back in the previous quarter due to a very weak economic performance, so the current estimate for this year remains unchanged as things stand at 0.7 percent year-on-year. One of the fundamental factors to influence future growth will be further developments in foreign trade and a related recovery of the European economy, especially the German one," added Hornak. ko/df