Slovakia`s Economy performed Fastest Growth in Europe in 1Q 2008

The growth of Slovakia's economy preserved its fast dynamics at the level of 8,7 % in 1Q 2008, albeit a slowdown from the record-breaking 14,3 % posted in 4Q 2007.
Among other factors, the fast growth in 4Q 2007 was influenced by exceptional one-time effects. In 1Q 2008 the growth of GDP was driven especially by consumption and investments. Thus for the first time since 2005 the growth of real incomes slightly exceeds the growth of the productivity of work. Although this is something that speaks well of the cautionary policies of the Slovak central bank (NBS) as well as that of government's budgetary discipline, the growth of real incomes over the past two years has been significantly lagging behind the growth of productivity. Slovakia's Statistics Office estimates the growth of economy for the whole of 2008 at 7,9 %, which is more or less in line with analysts' estimates.
Slovakia should also this year thus preserve the fastest economic growth among EU countries, backed by domestic and foreign demand. Unlike the first quarter, the structure of the growth in the following quarters of 2008 should be balanced by most of estimates.

(Created by Lubomira Kellerova)