GDP is seeing an increase by 4.8%

Compared to the corresponding quarter the previous year, GDP has increased by 4.8% in the fourth quarter of 2018, according to the Central Statistical Bureau. This means that, overall, in 2018, the economy has grown by 4.8 percent. The most significant contributors to the growth last year was investment growth and household consumption.

Similarly to previous quarters, the construction sector made a significant contribution to the GDP growth at the end of last year – an increase of 22%. There was a robust growth in the fourth quarter of the year in service sectors, driven by the development of the IT sector, the growth of tourism and related industries, as well as positive performance indicators in the transport sector.

The growth in the industrial sector continued - industrial output grew by 3% in the fourth quarter. Developments in industrial sub-sectors vary. In the energy sector, the production decreased, influenced by significantly lower volumes of electricity produced. In turn, manufacturing continued to grow steadily. There was a growth in 2018 in the largest manufacturing sub-sector, namely, wood processing, as well as in the manufacture of electrical equipment, manufacture of building materials, chemical industry, vehicle manufacturing, and manufacture of metal products.

According to the future forecasts, the pace of economic development may slow down somewhat, but it will still be above the European Union average. The Ministry of Economics predicts that in 2019 the GDP growth rate could reach 3.5 percent.