Slovakia reported a passive foreign trade balance on a year-round basis for the last time in 2008, when it reached nearly EUR 760 million.
Article continues below
The new record deficit of 2022 was due to a significant increase in imports throughout last year, mainly caused by high values of purchased natural gas, electricity and oil.
The growth of imports was so high that it completely overshadowed the increase in exports, the value of which was also record high.
Slovakia's foreign trade in 2022 registered a complete reversal in its development. For 14 years, the export of goods exceeded the import, but last year the balance ended with significantly negative values.
Slovakia recorded a negative trade balance of foreign trade, i.e. imports significantly exceeded the value of exports by up to EUR 4.3 billion.
According to preliminary data, the total export of goods from the country for the whole year increased by 16.1%, and the total import into the SR increased by almost a quarter (by 23.6%).
While the pace of last year's export growth moderated compared to 2021, imports rose faster than in 2021. Both export and import values exceeded EUR 100 billion which represents the highest volume since the implementation of the current foreign trade methodology (since 2010).
On a year-round basis, all 10 sections in the export structure showed double-digit growth. The most traded section in Slovakia's foreign trade – Machines and transport equipment (SITC 7), which also includes the export of automobiles, had the greatest impact on the increase in the export of goods from Slovakia.
While in 2020 and 2021, anti-pandemic measures in the country temporarily limited the manufacture of vehicles, last year the Slovak automotive industry had to struggle with problems in supply chains.
Despite this, the value of exported machinery and transport equipment increased by almost 11% year-on-year, which was the highest growth in the last ten years. However, their share in total exports decreased slightly.
While in 2021 it represented approximately 61%, last year machinery and transport equipment represented less than 58% of total exports.
The value of exported goods in 2022 was also positively affected by the 88% higher export of the fourth most traded section in the export structure - Mineral fuels (SITC 3), which includes, for example, the export of electricity and petroleum products.
The absolute majority of up to 80% of exported goods went to EU member states, and the volume of these exports increased by almost 17% year-on-year. The rest was made up of exports to countries outside the EU, which increased by more than 14%, year-on-year.
Also on the import side, the year-on-year increase was evident in all 10 sections. Higher prices of selected energies and materials had a significant impact on the record high import.
More than twice the value of imports in the Mineral fuels class, which includes the purchase of natural gas, oil and electricity, most significantly contributed to the growth of total imports in 2022.
The most traded section- Machinery and transport equipment - also contributed significantly. Imports of machinery and transport equipment, which represented almost 44% of total imports last year, rose by more than 12%, year-on-year.
Imports of goods from EU member states accounted for more than 62% of total imports and increased by almost a fifth year-on-year. Imports from the rest of the world increased by approximately 31%, year-on-year.
The total export of goods from Slovakia reached a value of EUR 7.7 billion in December 2022 according to preliminary results, with year-on-year growth by 1.1%. It was the lowest growth in the entire 12 months of last year.
The total import of goods also recorded the lowest increase of the year, but its value increased year-on-year by up to 14.3% to EUR 9 billion. Thus, the balance of foreign trade was in deficit in the amount of EUR 1.3 billion, the deficit was larger by EUR 1 billion than in December 2021.
In the last month of last year, only five out of ten sections of foreign trade achieved year-on-year growth in exports, while eight sections showed year-on-year growth in imports. Export growth was supported by higher exports of mineral fuels.
A higher increase in total exports was prevented by a decrease in the value of exported market products, or machinery and transport equipment. Machinery and transport equipment, including automobiles, recorded a year-on-year decline after seven months of growth.
At the end of the year, the increase in the value of purchased natural gas and motor vehicle parts had a significant share in imports.
After seasonal adjustment of the data in December 2022, the total exports of goods reached the value of EUR 8.7 billion, with a year-on-year growth of 3.6%. The total imports of goods increased by 17.6% to EUR 9.7 billion. The balance of foreign trade was in deficit in the amount of EUR 995.7 million. ■