The preliminary estimate of Slovakia's GDP in the first quarter of 2014 just released by the Statistics Office is a pleasant surprise, UniCredit Bank analyst Ľubomír Koršňák told TASR on Thursday.
“Gross domestic product in current prices increased by 0.6 percent compared to the previous quarter, while its year-on-year growth accelerated from the 1.5 percent seen at the end of 2013 to 2.4 percent”, said Koršňák. The analyst added that based on monthly statistics, it can be assumed that the country's GDP was largely boosted by increasing household consumption. “Gradual improvements were also recorded as concerns private investments, which were gradually rising from the dust. This was indicated by the volume of bank loans provided to non-financial businesses, which didn't post further reductions”, commented Koršňák. “The growth in real GDP in the first quarter of 2014 was stronger than we expected, and it indicates that the whole-year growth may amount to approximately 2 percent, or slightly more. Conversely, slow growth in nominal GDP is a negative signal for public finances, as it will result in lower increases in tax incomes”, stated Slovenská Sporiteľňa analyst Martin Baláž, adding that the current positive sentiments in the eurozone indicate that the economic revival should continue in the next few quarters.
