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2020.08.1415:32:00UTC+00Slovakia Economy In Recession In Q2

Slovakia's economy shrank further in the second quarter amid the disruption caused by the coronavirus, or Covid-19, pandemic, preliminary estimates from the Statistical Office of the Slovak Republic showed on Friday.

Gross domestic product decreased a seasonally adjusted 12.1 percent year-on-year following a 3.8 percent fall in the first quarter.

Two consecutive quarters of GDP decline qualifies as a technical recession.

On a non-adjusted basis, GDP fell 12.1 percent annually after a 3.7 percent decline in the first three months of the year.

The year-on-year decline in GDP was less severe than expected, the statistical office said. This was due to an increased activity in the last month of the second quarter in key industries, especially car manufacturing, as well as small businesses.

The positive foreign trade balance also contributed to the moderation of the decline in GDP, the agency added.

Compared to the previous quarter, GDP decreased a seasonally adjusted 8.3 percent in the second quarter after a 5.2 percent slump in the previous three months.

Total employment decreased a seasonally adjusted 2.3 percent year-on-year and by 1.1 percent from the previous quarter.

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