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slovakian economy powering out of recession

News Posted On: 18 August 2010

The Slovakian economy has continued to power out of recession. The 1.2% second quarter growth revealed in Eurostat's flash estimate puts Slovakian GDP now 4.9% higher than a year ago. This follows a growth of 0.8% and 1.7% in the previous two quarters, which took GDP up to 4.5% higher than in 2009.

With this Slovakian GDP is now higher on a year on year basis than any other European economy that provided second quarter data.

Comparing Slovakia, an emerging market to Europe's established markets is a sign of the times in which we live:

As we all know Greece is Europe's whipping boy at the moment. In the second quarter Greek GDP shrank 1.5% on a quarterly basis and 3.5% on an annual basis. This followed year on year contraction of 2.6% in Q4 last year, and 2.3% in the first quarter of this year.

Spain is not far behind. Spanish GDP grew just 0.2% in the second quarter, at which point it was still 0.2% smaller than last year. In the previous two quarters the Spanish economy grew by 0.1% on a quarterly basis in the first quarter, and shrank by 0.1% on a quarterly basis in the fourth quarter of last year, year on year GDP shrank 1.3% (Q1) and 3.1% (Q4 2009) respectively in those quarters.

France is doing better, with a growth of 0.6% in the second quarter, pushing year on year GDP up 1.7%, following a year on year growth of 1.2% in Q1.

But Germany is the only one coming close to Slovakia, with a 2.2% quarterly growth, pushing GDP up 3.7% compared to last year.

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