Without the war in Ukraine, growth in the Slovak economy could have been approximately double what it was last year, according to the latest analysis dedicated to one year of the war in Ukraine, drawn up by Slovenska Sporiteľna analysts.
According to them, Slovakia's gross domestic product (GDP) in 2022 could have grown by 3 percent instead of the actual 1.7 percent recorded. Industrial companies, important drivers of GDP growth during the pandemic, were hit hardest by the outbreak of the military conflict. They faced many problems associated with increases in input prices and the disruption of supplier-customer chains. Although Ukraine and Russia weren't among important export markets for the Slovak economy, dependence on imports of some raw materials was significant.
"The war thus affected the Slovak economy mainly in the form of increased energy prices with an impact on household consumption, and on industrial output, especially in energy-intensive sectors such as the chemical industry and the production and processing of metals," stated the analysts. The economy thus moved from a pandemic crisis to an energy one. Its growth slowed down, ranging between 0.3-0.4 percent quarter-on-quarter for most of the year.
It's unknown how long the war in Ukraine will last, but Slovakia and other European Union (EU) countries are making significant progress towards achieving energy independence from Russia, stated the economists. "These steps are necessary for greater macroeconomic stability and lower exposure to the effects of the current crisis," they stressed.
Source: TASR
