Slovakia’s economy will grow at a considerably faster rate this year than was originally expected, according to the Finance Ministry which improved its prediction for GDP growth from 1.1 percent in its February 2012 assessment to 2.5 percent now, based on what the ministry said is better than expected economic growth in the first quarter and partly by an improving external environment, the SITA newswire reported on June 15.

The Finance Ministry also stressed that significantly more tax revenue cannot be expected from this higher growth rate.

“The structure of economic growth will have little impact on tax revenue, whereas the growth will continue to be primarily driven by foreign trade,” said the ministry, as quoted by SITA, adding that Slovakia’s labour market and household consumption will revive only gradually.

The ministry said that next year the economy will grow at a slightly slower pace than it predicted in February. The GDP growth estimated at 2.6 percent is 0.1 percentage points less than originally estimated in February and reflects the consolidation package prepared by the government which should decrease next year’s state deficit below the Maastricht criterion of 3 percent of GDP. In 2014, the Finance Ministry expects economic growth to accelerate to 3.9 percent and in 2015 to slow down to 3.7 percent, SITA wrote.

Source: SITA

Compiled by Radka Minarechová from press reports
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