Government Consumption in Slovakia
In the decade leading up to 2022, Slovakia's economy recorded an average growth rate in government consumption of 1.8%. This is above the Euro Area's average of 1.5%. In 2022, the government consumption growth dipped to -4.2%.
Slovakia Government Consumption Chart
Slovakia Government Consumption Data
2019 | 2020 | 2021 | 2022 | 2023 | |
---|---|---|---|---|---|
Government Consumption (ann. var. %) | 4.7 | -0.9 | 3.7 | -2.9 | -3.0 |
Economic growth slows to 18-month low in Q3
Growth decelerates: A second release confirmed that yearly GDP growth decelerated to 1.2% in the third quarter (Q2: +2.0% yoy), marking the softest result since Q1 2023. On a seasonally adjusted quarter-on-quarter basis, economic growth accelerated to 0.3% in Q3 from the previous period's 0.2% growth.
Broad-based decline drives the downtick: Looking at the details of the release, the annual downturn was broad-based, with all GDP expenditure subcomponents posting weaker readings. Domestically, household spending growth fell to 1.5% in Q3 (Q2: +2.5% yoy), marking the weakest result since Q4 2023. In addition, public consumption growth cooled to 0.9% (Q2: +5.6% yoy). Moreover, fixed investment contracted 8.0% in Q3 (Q2: +4.4% yoy)—dragged on by a high base of comparison—posting the first decline in two years. On the external front, exports of goods and services contracted 0.2% on an annual basis in Q3, contrasting the second quarter's 3.6% expansion. Meanwhile, imports of goods and services deteriorated, contracting 0.3% in Q3 (Q2: +7.0% yoy).
Stable growth in 2025: In Q4, our panelists expect GDP growth to strengthen. Turning to 2025, our Consensus is for the economy to expand at a similar pace to 2024’s projected figure. A recovery in fixed investment, supported by lower interest rates and EU funds, along with rising exports growth driven by stronger EU demand, will offset weaker growth in both private and public spending.
Panelist insight: Commenting on the reading, Matej Hornak, analyst at Erste Bank, stated: “Cost-increasing measures for companies, stemming from consolidation efforts announced by the government a few weeks ago, are expected to negatively impact investment activity and GDP growth in the coming years. Due to these consolidation efforts, GDP could weaken by half a percentage point in each of the next two years, as reduced consumption and investment activity may dampen growth over a longer horizon. The pressure on corporate budgets will also affect the ability to raise wages, although a relatively tight labor market will still favor employees.”
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Slovak government consumption projections for the next ten years from a panel of 12 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable government consumption forecast available for Slovak government consumption.
Download one of our sample reports to visualize what a Consensus Forecast is and see our Slovak government consumption projections.
Want to get access to the full dataset of Slovak government consumption forecasts? Send an email to info@focus-economics.com.
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