Slovak economy grows 2.4%

Slovakia's economy grew by 2.4 percent year-on-year in the first quarter of 2014, and by 0.6 percent compared to the previous quarter, the country's official statistics office announced on Thursday. The preliminary estimate of Slovakia's GDP comes as a pleasant surprise, UniCredit Bank analyst Lubomir Korsnak said, adding the country's GDP was largely boosted by increasing household consumption. "Gradual improvements were also recorded in private investments, which were gradually rising from the dust. This was indicated by the volume of bank loans provided to non-financial businesses, which did not further reduce," Korsnak said. Net exports also boosted GDP growth, he added. "The growth in real GDP in the first quarter of 2014 was stronger than we expected, and it indicates that the whole-year growth may amount to approximately 2 percent, or slightly more," said analyst Martin Balaz from the Slovenska Sporitelna bank. "Conversely, slow growth in nominal GDP is a negative signal for public finances, as it will result in lower increases in tax incomes," he said, adding that the current positive sentiments in the eurozone indicate that the economic revival should continue in the next few quarters.