Slovakia economic growth slows to 0.7 percent in second quarter

Slovakia's economic growth slowed significantly to 0.7 percent in the second quarter, marking its weakest performance in the past year. Data from the Statistical Office of the Slovak Republic indicates that while household consumption helped sustain the economy, other key drivers faltered.

Private investments have seen a double-digit decline since the beginning of the year. Experts suggest that companies are being deterred by a combination of domestic economic policies and international risks, including competition from China and conflicts in the Middle East. Additionally, the third round of fiscal consolidation is described as anti-growth.

Economists warn that the slowdown complicates the government's efforts to consolidate public finances and prepare the upcoming state budget. There are growing concerns regarding whether the country faces temporary deceleration or long-term economic stagnation.