Energy price hikes and a shortage in energy supplies have hit Slovakia’s industry harder than those of other Visegrad Four countries despite it recording a slight production spike while significant month-to-month decreases were observed in other V4 states.
Industry production saw a year-on-year increase in the Czech Republic, Poland and Hungary, but not in Slovakia, for which production fell by 2.6%.
Though Slovakia recorded a month-on-month between September and October unlike other Visegrad Four Countries, including Poland which saw the most significant month-to-month decrease in that period, analysts, while pleased with the slight increase, remain hesitant about it foreshadowing a long-term recovery and most expect industry production to fall even deeper in the next few months.
“The mood in the domestic industry remains low,” according to Ľubomír Koršňák, an economist at UniCredit Bank in Bratislava.
“The war in Ukraine, record-breaking inflation, but also the first effects of the tightening of the monetary policies in several important export markets of Slovak industry will increasingly weaken the condition of several sectors of Slovak industry,” he added.
Industry in the Central European region is threatened by high energy prices and the cooling of global demand that followed central banks’ raising of interest rates in response to inflation. Sectors that do not have a demand problem, such as the automotive industry, are still struggling with logistics problems.
(Michal Hudec | EURACTIV.sk)
Source: euractiv.com
