Research Detail
| 2024/03/15 / Erste Group Research |
Good year for automotive, rough one for budget In 2023, the Slovak economy grew by 1.1% y/y, primarily supported by the outstanding performance of foreign trade. Taking a closer look, the main driver was the automotive industry, which not only saw excellent production figures, but also promising long-term prospects. Following Volvo's investment in Košice, new battery plants and production lines for electric vehicles have been announced. However, a negative contribution to GDP growth came from household consumption, dampened by elevated inflation, and inventories. Additionally, EU funding was an important source of growth. Price growth in Slovakia decreased from a high of over 15% in February to below 4% in December. Strong government energy price regulation will continue to play a key role this year, bringing the average inflation to 3%. However, core inflationary pressures are still anticipated, due to the tight labor market. Despite promises from the Ministry of Finance regarding a credible consolidation plan, the promise has not yet been fulfilled. On the contrary, instead of expenditure cuts, we have seen the implementation of new costly fiscal measures. |
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General information
| Author | Erste Group Research |
| Date | 2024/03/15 |
| Language |  |
| Product name | CEE Country Macro Outlook |
| Topic in focus | FX, Macro/ Fixed income |
| Economy in focus | Slovakia |
| Currency in focus | Euro |
| Sector in focus | - |
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