Slovakia's economy rose year-on-year by 0.9 percent in 3Q13 mainly thanks to foreign demand as well as a slight rise in domestic consumption, UniCredit Bank Czech Republic and Slovakia analyst Ľubomír Koršňák said.
“The growth of the economy continued to be driven by foreign demand. However, the contribution of exports to the growth in GDP slowed down to 2.1 percentage points,” he added. The growth of Slovakia's GDP also benefited from the rise in household as well as public administration consumption; “the key portion of the economy, which is the household consumption, rose year-on-year by 0.1 percent. Although not a significant rise to fuel a skyrocketing growth of economy in any way, shape or form, but this puts the economy on a stable footing,” says Home Credit analyst Michal Kozub. According to Kozub, household consumption forms almost half of all the GDP in Slovakia. “As long as the consumption is stable, the economy can breathe easier and, therefore, also grow. The lowering inflation of consumer prices motivates people to purchase more, keeping consumption on a growing trend,” he added.
