Slovakia’s industrial production declines in early 2025 amid sharp slowdowns in key sectors

Slovakia’s industrial sector experienced a sharp slowdown at the beginning of 2025, marking its first decline in six months. Despite strong growth in vehicle manufacturing, industrial production fell by 5.2% year-on-year in January, a downturn influenced by significant contractions in metal production, energy-related industries, and machinery manufacturing.

The decline in industrial output was the most substantial since March 2024, reflecting a return to negative territory after a period of modest growth. While key sectors such as automotive manufacturing continued to perform well, their gains were insufficient to counterbalance losses in other significant areas of the economy. Of the 15 monitored industrial sectors, nine recorded lower year-on-year production.

The most notable factor behind the industry’s contraction was the 17% drop in metal production, which alone contributed to a 2.97 percentage point decline in overall industrial output. Energy-related industries also saw a steep decline, with electricity, gas, steam, and air-conditioning supply falling by 18%, reversing the positive contributions made throughout much of the previous year. This sector’s downturn accounted for a 2.50 percentage point drag on industrial performance.

Despite these setbacks, the transport equipment manufacturing sector recorded a 12% year-on-year increase, contributing positively to industrial production and mitigating what could have been a more severe decline. However, other key industrial activities continued to struggle. Machinery manufacturing dropped by 19%, and electrical equipment production slowed by over 10%, further weighing on the sector’s overall performance.

Compared to the previous month, seasonally adjusted industrial production fell by 7.3%, indicating a broader cooling in Slovakia’s industrial economy. The figures suggest that while certain sectors remain resilient, the overall industrial landscape faces significant challenges as 2025 unfolds.

Source: Statistical Office of the SR