Slovak economy doing well but likely to fall into recession soon –


While the economy maintained modest growth in the third quarter of 2022, the Central Bank expects the country to fall into recession at the turn of the year.

The economy grew 0.3% quarter-on-quarter and 1.2% year-on-year. Economists see this as a surprise, as data from Czechia and Hungary show their economies contracted quarter on quarter.

“The Slovak economy pleasantly surprised in the third quarter,” said Ľubomír Koršňák, chief economist at UniCredit Bank in Bratislava. “The GDP flash estimate did not confirm the weak monthly figures for retail trade, industry or some market services, which consistently showed a mainly downward trend compared to the previous quarter.”

However, a short recession should follow, as indicated by the stagnation in the labor market. Despite the economic growth, only 2,000 jobs were added to the market, which corresponds to an increase of 0.1%. In comparison, the second quarter of the year increased by 0.5%.

The Central Bank says this was expected due to the dwindling number of refugees from Ukraine and possible future economic insecurities.

The negative outlook for the near future is also confirmed by a survey of German companies operating in Slovakia, published by the Slovak-German Chamber of Commerce. Nearly 40% of the 74 companies that took part in the survey expect their economic situation to deteriorate within a year. Just under a fifth predict it will improve.

(Michal Hudec |


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