Despite the decline in foreign demand, due to the lingering fourth wave of the pan-demic, economic growth kept domestic demand above three percent in the first quarter, mainly due to higher household consumption and investment activity.
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As for the 10 sectors of the economy, up to 7 grew year-on-year.
Gross domestic product increased by 3.1%, year-on-year, in the first quarter of 2022 (at constant prices, not seasonally adjusted). The performance of the Slovak economy maintained positive values in the first quarter, which were higher than in the previous two quarters.
On a quarter-on-quarter basis (Q1 2022 compared to Q4 2021), seasonally adjusted GDP was higher by 0.4% at constant prices. In the first quarter of 2022, the volume of GDP at current prices reached EUR 23.8 billion.
Despite the fluctuating development of some key parameters we reached the level of performance recorded before the pandemic (compared with the first quarter of 2019).
In the first quarter, the performance of individual sectors of the economy remained in modest growth, with the total volume of gross value added reaching EUR 18.1 billion. The key component of GDP thus grew by 7.8%. Performance of sectors did not reach pre-pandemic levels, compared to the first quarter of 2019, it was lower by 1.8%.
Overall as for the 10 sectors of the economy, 7 of them recorded a year-on-year increase in gross value added, but only 4 sectors exceeded the pre-pandemic level.
The second most important sectors - wholesale, retail trade; transportation and storage; accommodation and food service activities - achieved not only significant year-on-year growth (by 15%), but also they exceeded the same period before the pandemic by more than 8%, mainly due to a growth in domestic trade by 18%.
Higher performance was also recorded in real estate activities, exceeding the pre-covid level by 6.6%. The sectors of information and communication (by 10.1%) and public administration, defense, compulsory social security; education; human health and social work activities (by 8.7%) also exceeded the level of the first quarter of 2019.
The collection of net taxes on products was higher by 17.7% year-on-year.
The manufacturing sector, which accounted for the largest share of total gross value added with a quarter, recorded a slight year-on-year increase in value added of 0.8% in the first quarter. Compared to the pre-pandemic level (compared to the first quarter of 2019), performance was still lower by more than 4.7%. We recorded a decline in value added in several important sectors.
The most significant year-on-year decrease was recorded in manufacture of motor vehicles by more than 15%. The development of manufacturing was positively affected by manufacture of metal structures with an increase of more than 13% and manufacture of machinery and equipment by almost 20%.
In services, a year-on-year growth was mainly recorded in warehousing and support activities of transportation by more than 24% and in land transport by more than 19%, as well as in wholesale and retail trade and repair of motor vehicles and motorcycles by more than 10%.
The overall result was negatively affected mostly by a decrease in value added in professional, scientific and technical activities by 15.4%, as well as by more dynamic declines in the less important sectors of financial and insurance activities by 30.5% and agriculture, forestry and fishing by 7.4%.
The positive economic performance was kept the third consecutive quarter, it was mainly due to domestic demand, which remained growing for the fourth consecutive quarter and increased by 6.7%. The development of domestic demand was decisively influenced by an increase in final consumption by 6.8%, mainly by the continuing growth of final consumption by households by 9.1%.
The final consumption of public administration has been fluctuating in the last year; after growing in the previous quarter, it was again lower by 0.4% in the first quarter. Gross capital formation also grew by 6.2%, of which fixed capital formation was higher by 6.4%.
After growing in the previous quarter, foreign demand, i.e. exports of goods and services again fell by 4.5% in the first quarter of 2022. However, its volume at constant prices was higher than in the same period before the pandemic. Imports of goods and services also recorded a year-on-year decline, with a slower rate (1.3%).
From the generated GDP1), the remuneration of employees) amounted to EUR 10.8 billion. Compared to the first quarter of 2021, their volume increased by 8.3%. Gross operating surplus and mixed income in the amount of EU 10.8 billion increased by 6.8%.
The volume of taxes collected from production and imports increased by 18.2% to more than EUR 3 billion. The value of subsidies was lower by 5.4% and reached EUR 770.3 million. ■