Slovak Economy Grows 0.6% in Second Quarter, Slowest Pace in Over Two Years

Slovak Economy Grows 0.6% in Second Quarter, Slowest Pace in Over Two Years

Bratislava – Slovakia’s economy grew by 0.6 percent year-on-year in the second quarter of 2025, marking its slowest expansion in two and a half years, according to preliminary data. The modest increase was driven primarily by household and public sector consumption, while investment activity revived after a year of decline. However, weaker results in key economic sectors, notably real estate and construction, offset much of the positive momentum.

Gross domestic product (GDP) at constant prices reached €34.5 billion in the quarter, with growth remaining below one percent for the second consecutive quarter. After seasonal adjustment, GDP rose by 0.2 percent compared with the first quarter of 2025. Gross value added totaled €23.5 billion, essentially unchanged from the previous year.

Industry, the largest sector of the Slovak economy with a 17 percent share of total value added, grew by 2 percent year-on-year. Gains came from metal production, electrical equipment manufacturing, and transport equipment, while declines in machinery, equipment, and chemicals weighed on results. Trade, transport, accommodation, and food services posted a 0.9 percent increase, while financial and insurance activities grew by 1.5 percent. Public administration also registered a modest gain. In contrast, real estate activity fell by 4.5 percent, construction declined by 1.8 percent, and information and communication slipped by 1.1 percent.

From the expenditure side, GDP growth was supported by domestic demand. Household consumption rose by 2 percent, up from 0.5 percent in the previous quarter, while public sector spending increased by 2.2 percent. Gross fixed capital formation grew for the first time in three quarters, though overall gross capital formation fell by 4.2 percent due to lower inventories.

Exports rose by 3 percent and imports by 2.9 percent, producing a slightly positive trade balance – the first surplus in a year. For the first half of 2025, GDP increased by 0.7 percent, with nominal output reaching €65.6 billion. Domestic demand expanded by 1.8 percent over the same period, but foreign trade developments exerted a drag, as import growth outpaced exports, resulting in a trade deficit of €47 million.