Money Buzz! Europa

Category: Bratislava

  • Slovakia: Decrease in employment and wages deepened in April

    Slovakia: Decrease in employment and wages deepened in April

    A decrease in employment and wages, which was reflected in March figures, deepened even more in most sectors in April, latest statistical figures show.

    In April 2020 compared with April 2019, employment increased only in information and communication by 4,8 %.

    It decreased in food and beverage service activities by 9,3 %, accommodation by 7,5 %, industry and construction equally by 6,1 %, retail trade and in selected market services equally by 4,8 %, wholesale by 3,9 %, sale and repair of motor vehicles by 2,5 % and in transportation and storage by 1,2 %.

    In the first four months of 2020, compared with the corresponding period in 2019, employment rose, on average, in information and communication by 5,1 % and transportation and storage by 1 %.

    It decreased in industry by 3,9 %, retail trade by 3,1 %, food and beverage service activities by 2,2 %, wholesale by 1,8 %, construction by 1,4 %, sale and repair of motor vehicles by 0,8 %, accommodation by 0,3 % and in selected market services by 0,1 %.

    Average monthly wage increased only in retail trade and in wholesale

    In April 2020 compared with April 2019, the average nominal monthly wage increased in selected market services by 1,8 % (reached EUR 999), retail trade by 1,6 % (EUR 759) and in wholesale by 0,8 % (EUR 1 014).

    It significantly decreased in accommodation by 26,9 % (EUR 543), but a fall was recorded also in other activities:

    • food and beverage service activities by 9,8 % (EUR 460),
    • industry by 8,8 % (EUR 1 083),
    • transportation and storage by 5,5 % (EUR 956),
    • sale and repair of motor vehicles by 4,8 % (EUR 981),
    • information and communication by 2,9 % (EUR 1 994), 
    • construction by 1,4 % (EUR 722).

    In April 2020, the average real monthly wage fell in all the surveyed sectors year-on-year, the most in accommodation by 28,4 %.

    It decreased in food and beverage service activities by 11,7 %, industry by 10,7 %, transportation and storage by 7,4 %, sale and repair of motor vehicles by 6,8 %, information and communication by 4,9 %, construction by 3,4 %, wholesale by 1,3 %, retail trade by 0,5 % and in selected market services by 0,3 %.

  • Slovak company O.M.C. Invest to build 29 family houses in Smilovice

    Slovak company O.M.C. Invest to build 29 family houses in Smilovice

    The Slovak development company O.M.C. Invest started the construction of 29 family houses in the village of Smilovice in the Czech Republic.

    The construction of 17 houses is currently underway and will be completed within a year. In parallel, according to economic development and other important factors, the second phase should start later.

    Utilities and communications are already built.

    Mário Červenka, O.M.C. Invest owner says: “This district is located in the village of Smilovice, approximately 15 km from Mladá Boleslav and 20 minutes by car to Prague. Low-energy bungalows and two-storey houses can be purchased. The sensitively designed interior of family houses by designer Alexandra Rybárové provides living in the village with a touch of luxury. They will be heated with a heat pump and fireplace furnaces are designed as a complement.” 

  • Unemployment rate in Slovakia rose for the first time after six years

    Unemployment rate in Slovakia rose for the first time after six years

    • In the 1st quarter of 2020, a long-term downward trend of unemployment rate stopped.
    • Unemployment rate rose for the first time after six years, year-on-year, by 1,1 %.

    The total number of the unemployed, according to the Statistical Office of the Slovak Republic, rose by 1,8 thous. to 161,6 thous. persons. Compared with the 1st quarter of 2019, the unemployment rate increased by 0,2%, reaching 6%.

    For women it grew by 0,2 p.p. to 6,2 %, for men by 0,1 p.p. to 5,8 %.

    Compared with the 4th quarter of 2019, the seasonally adjusted unemployment rate increased by 6,2 thous. persons (by 4 %) to 160,7 thous. persons.

    The number of the unemployed persons increased in the majority of age groups. It rose the most in the age group of the 35-49 by 6 thous. persons. A year-on-year decrease was recorded in the age group 25-34 (by 6,8 thous. persons) and in the 55-59 age group (2,9 thous. persons)

    The unemployed persons, who have never had a job, represented 21,5 % of the total unemployment, their share decreased by 1 p.p., year-on-year. In terms of the economic activity of the last employer, the highest number persons was employed last in industry (23,3 %), in trade (8,8 %) and in accommodation and food services (by 6,7 %).

  • Average monthly wage in Slovakia at EUR 1.086

    Average monthly wage in Slovakia at EUR 1.086

    The average nominal monthly wage of an employee in the economy of the Slovak Republic reached EUR 1.086, the Statistical Office of the Slovak Republic shows.

    Compared with the 1st quarter of last year, it grew by 6,2%, but its dynamics of growth slowed down year-on-year by 0,9%.

    Taking into account the inflation rate, the increase of the real wage reached 3,3%. Compared with the 4th quarter of 2019, the seasonally adjusted average wage grew by 1,4%.

    The highest level of average monthly wage was reached in the sectors of:

    • financial and insurance activities (EUR 2.085),
    • electricity, gas, steam and air-conditioning supply (by EUR 2.070),
    • information and communication (EUR 1.972).

    In eleven sectors, the wage was lower than the average

    The lowest average nominal wage was recorded by employees in accommodation and food service activities (EUR 594), in other activities (by EUR 654) and in construction (by EUR 723).

    Compared with the corresponding period last year, the average nominal monthly wage increased in all sectors, relatively the most rapidly in electricity, gas, steam and air-conditioning supply (by 13,9 %), in public administration and defense (by 11,6 %) and in education (by 10,1 %).

    Highest monthly wage in Bratislavský kraj

    In territorial terms, the average nominal monthly wage was higher than the average of the total economy of the SR only in Bratislavský kraj (EUR 1.394).

    In other regions, it ranged from EUR 834 in Prešovský kraj to EUR 1.007 in Trenčiansky kraj.

    The average wage increased year-on-year, in all regions with the highest relative increase by 7,9% in Nitriansky kraj and with 7,8% in Banskobystrický kraj.

  • Dwellings´ prices in Slovakia increased by 4% in Q1 2020

    Dwellings´ prices in Slovakia increased by 4% in Q1 2020

    In comparison with the 4th quarter of 2019, dwellings´ prices in the 1st quarter of 2020 increased by 4%, latest Statistical Office of the Slovak Republic data shows.

    Prices of new dwellings increased by 3,4% and prices of existing dwellings increased by 4,4 %.

    Dwellings´ prices increased by 13,1% in comparison with the 1st quarter of 2019.

    Prices of new dwellings increased by 9,7% and prices of existing dwellings increased by 15,5%.

  • Slovakia: Total number of visitors decreased by 65% in March

    Slovakia: Total number of visitors decreased by 65% in March

    In March 2020, 151.930 persons stayed in the tourism accommodation establishments in the Slovak Republic, two thirds of which were domestic visitors.

    The sharp decline in the number of guests and the number of overnight stays was the result of an emergency situation caused by the coronavirus.

    The number of overnight stays reached 515.914, of which overnight stays by domestic visitors accounted for more than 70 %.

    Compared to the same period last year, the total number of visitors decreased by 65 %, of which domestic visitors  decreased by 63,9 % and foreign ones by 66,9 %. The number of overnight stays was lower by 56 % year-on-year.

    During March, visitors spent an average of 3,4 nights in the accommodation establishments, including  domestic visitors 3,6 nights and foreign ones 2,9 nights.

    The most visited region was the Žilinský kraj, the total number of accommodated persons was almost 38 thousand, visitors spent the most nights in it, almost 126 thousand.

    Domestic visitors went mainly to the Žilinský and Prešovský kraj, in both regions their number exceeded 23 thousand and the number of overnight stays 80 thousand.

    The highest number of foreign visitors (16,9 thousand) visited the Bratislavský kraj, but they spent the most nights in the Žilinský kraj, where the number of overnight stays of foreign visitors exceeded 45 thousand.

  • Annual inflation rate reached 2.1% in Slovakia, in April

    Annual inflation rate reached 2.1% in Slovakia, in April

    In April 2020, the annual inflation rate measured by the harmonized index of consumer prices reached 2.1%, latest data from the Statistical Office of Slovakia show.

    The average annual inflation rate (expressed as the change in the average harmonized index of consumer prices over the last 12 months compared with the average of the previous 12 months) was 2.9 % in April 2020.

    The month-on-month harmonized index of consumer prices of 99.9% was most affected by lower prices in the division Transport (negative contribution -0.29 percentage points); of which the development of fuel prices was responsible for the decline by -0.27 pp.

    The decrease in prices in the division Alcoholic beverages and tobacco is responsible for the negative contribution of -0.04 pp, caused mainly by a decrease in prices of spirits (contribution -0.03 pp).

    The highest positive contribution in the index was recorded in the division Food and non-alcoholic beverages – 0.14 pp, of which increase of food made up 0.15 pp (increase in prices of vegetables 0.10 pp, fruits 0,03 pp and bread and cereals 0.03 pp) and decrease of non-alcoholic beverages: -0.01 pp.

    In the division of Clothing and footwear, there is a seasonal character, which was taken into account when choosing the method of imputation of uncollected prices, while the total contribution to the aggregate index was 0.07 pp.

    The contributions of other divisions reached from -0.02 pp to 0.03 pp.

  • Slovakia gross domestic product decreased by 3.9%

    Slovakia gross domestic product decreased by 3.9%

    In the first quarter of 2020 the gross domestic product (GDP) at constant prices decreased by 3.9% as compared to the same quarter of 2019. After seasonal adjustment, GDP decreased by 4.1% as compared to the first quarter of 2019 and by 5.4% in comparison with the previous quarter.

    At current prices, GDP in the first quarter of 2020 amounted to 21,433.7 mil. EUR, which represents a decrease of 1 % compared to the 1st quarter of 2019.

    The unfavourable economic development is due to the decline in value added in key industries, especially in car production and in several service sectors.

    External demand made a significant contribution to the decreasing GDP, and the dynamics of its year-on-year decline accelerated. Due to the current situation, the growth of domestic demand is insufficient, with final consumption expenditures in the general government sector growing the most. Investment demand has declined in comparison with previous quarters.

    Total employment in the reference period reached 2,425.8 thousand persons. In com­pa­rison with the first quarter of 2019 it decreased by 0.5%.

    Seasonally adjusted total employment decreased by 0.4% as compared to the first quarter of 2019 and by 0.5% as com­pa­red to the fourth quarter of 2019.

  • Industrial production down by 11.3% in euro area in March 2020

    Industrial production down by 11.3% in euro area in March 2020

    In March 2020, the COVID-19 containment measures widely introduced by EU nations had a significant impact, as industrial production fell by 11.3% in the euro area and by 10.4% in the EU, compared with February 2020, according to estimates from Eurostat, the statistical office of the European Union.

    In February 2020, industrial production fell by 0.1% in the euro area and remained stable in the EU.

    In March 2020 compared with March 2019, industrial production decreased by 12.9% in the euro area and by 11.8% in the EU.

    In the euro area in March 2020, compared with February 2020, production of durable consumer goods fell by 26.3%, capital goods by 15.9%, intermediate goods by 11.0%, energy by 4.0% and non-durable consumer goods by 1.6%.

    In the EU, production of durable consumer goods fell by 23.8%, capital goods by 15.1%, intermediate goods by 9.9%, energy by 3.5% and non-durable consumer goods by 1.2%.

    Italy tops industrial production decline

    Among Member States for which data are available, the largest decreases in industrial production were registered in Italy (-28.4%), Slovakia (-20.3%) and France (-16.4%).

    The highest increases were observed in Ireland (+15.5%), Greece and Finland (both +1.9%) and Lithuania (+0.7%).

  • Employment fell in most sectors in Slovakia, in March 2020

    Employment fell in most sectors in Slovakia, in March 2020

    • Employment fell in most sectors, rising only in information and communication and transportation and storage, show latest data of the Slovak Statistical Office.
    • Only half of sectors recorded an increase in the average monthly wage.

    In March 2020 compared with March 2019, the employment increased in information and communication by 4,6 % and in transportation and storage by 1,1 %.

    It decreased in industry by 3,6 %, retail trade by 3,5 %, food and beverage service activities by 3 %, accommodation by 2,3 %, wholesale by 1,8 %, sale and repair of motor vehicles by 1,4 %, construction by 0,9 % and in selected market services by 0,8 %.

    In the first three months of 2020, compared with the corresponding period in 2019, employment rose, on average, in information and communication by 5,3 %, accommodation by 2,1 %, transportation and storage by 1,7 %, selected market services by 1,5 %, construction and food and beverage service activities equally by 0,2 %.

    It decreased in retail trade by 2,6 %, industry by 2,5 %, wholesale by 1,1 % and in sale and repair of motor vehicles by 0,2 %.

    Average monthly wage increased in only half of sectors

    In March 2020 compared with March 2019, the average monthly wage increased in food and beverage service activities by 7,5 % (reached EUR 528), wholesale by 4,1 % (EUR 1.082), retail trade by 4 % (EUR 777), industry by 2,5 % (EUR 1.156) and in information and communication by 2 % (EUR 2.227).

    It decreased in accommodation by 6,9 % (EUR 704), sale and repair of motor vehicles by 2,3 % (EUR 997), construction by 2,1 % (EUR 712),  selected market services by 0,9 % (EUR 1.034) and in  transportation and storage by 0,4 % (EUR 987).

    In the first three months of 2020, compared with the corresponding period in 2019, the wage increased, on average, in food and beverage service activities by 10,9 % (reached EUR 550), retail trade by 7,2 % (EUR 790), industry by 4,8 % (EUR 1.155), wholesale by 4,3 % (EUR 1.063), transportation and storage by 4 % (EUR 1.016), selected market services by 3,9 % (EUR 1.031), information and communication by 3,4 % (EUR 2 037), accommodation by 2,9 % (EUR 770), construction by 2,3 % (EUR 723) and in sale and repair of motor vehicles by 1,3 % (EUR 1.046).

  • Fitch downgrades Slovakia. The outlook is stable

    Fitch downgrades Slovakia. The outlook is stable

    Fitch Ratings has downgraded Slovakia’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘A’ from ‘A+’. The Outlook is stable.

    Fitch forecasts that real GDP will shrink by 10% in 2020, as Slovakia’s open economy is hit by the COVID-19 pandemic. External demand will be significantly weaker and restrictions on activity will depress domestic demand.

    A lockdown of economic activity (in place since 13 March) will be progressively loosened from mid-May and the economy will begin recovering from the second half of 2020, with growth forecast at 6.8% in 2021.

    The auto industry, which accounts for 13% of GDP and 24.2% of exports (2018), shut down production as the lockdown was imposed, before restarting phased operations from mid-April. Fitch expects that planned investments for capacity expansion will be subject to renewed uncertainty given that external demand will take time to recover.

    Fitch has sharply revised its general government balance forecast downwards to -7.7% of GDP for 2020 (previous review: -0.8%; 2019: -1.3%), compared with a current peer median of -8.5%.

    The government has announced support measures worth around 6% of GDP, which will comprise direct fiscal support, liquidity support and guarantees.

    Of these, the fiscal cost of wage payments under the Kurzarbeit scheme is expected to amount to 1.6% of projected 2020 GDP, while the introduction of a recurring 13th month pension will cost an estimated 0.7% of GDP.

    Fitch expects revenue to decline by 10.5% in 2020 (equivalent to 1.1pp of GDP), as tax and social security receipts fall due to the economic contraction.

  • Industrial production in Slovakia, lowest level since 2009

    Industrial production in Slovakia, lowest level since 2009

    In March, industrial production in Slovakia decreased by 19,6 % year-on-year, reaching the lowest level since May 2009, show the latest data published by Statistical Office of The Slovak Republic.

    The development was affected by a drop in manufacturing by 21,4 % and in electricity, gas, steam and air-conditioning supply by 10,4 % and by an increase in mining and quarrying by 7,2 %.

    The most significant drop was recorded in manufacture of transport equipment by 38,3 %, manufacture of machinery and equipment by 18,2 %, manufacture of rubber and plastic and other non-metallic mineral products by 16,1 %, manufacture of computer, electronic and optical products by 41,1 % and other manufacture, repair and installation of machinery and equipment by 30,7 %.

    The total production saw an increase in manufacture of electronic equipment by 5 %, mining and quarrying by 7,2 % and in manufacture of food, beverages and tobacco products by 0,7 %.

    Compared with March 2019, in terms of the main industrial groupings, production of durable consumer goods decreased by 41,5 %, production of investment goods by 31,3 %, production relating to energy by 10 %, production of non-durable consumer goods by 9,7 % and production of intermediate goods by 7,7 %.