Year-on-year inflation in Slovakia rose to 2.9% in July, up by 0.2 percentage points (pp) from June, with core inflation standing at 2.5% and net inflation at 1.9%, the data of the Slovak Statistics Office (SSO) showed on August 13.
GDP growth figures from the second quarter of this year were down on the first quarter but showed that growth was still being supported in Central and Eastern Europe by domestic demand that has gone some way to offsetting an EU slowdown.
Slovakia’s industrial production contracted by 2.1% year-on-year in June, a sharp fall from the 4.7% expansion the previous month, and fell to its lowest level since April 2017, Slovak Statistical Office data showed on August 9.
The core message for bankers and investors active in the CEE region should be: close to old records, potential for more but watch out for late cycle phenomena.
Governments of Central and Southeast Europe have already secured most of the funding they need for this year, but with more obligations maturing in 2020 they are expected to return to the markets on a large scale next year