THE ECONOMY is growing faster than expected according to an analysis prepared by the Finance Ministry’s Financial Policy Institute which states that GDP in Slovakia will grow by 3.4 percent in 2011 and by 4.8 percent in 2012, the Sme daily reported.
The Financial Policy Institute commented that the reason behind its better prognosis is an expected improvement in the external environment and positive preliminary data for the fourth quarter of 2010 in both Slovakia and across the eurozone. The institute wrote that in the first two years of its prognosis, economic growth should be primarily triggered by foreign demand, investments, and rebuilding of inventory but that beginning in 2012 an increase in domestic household consumption due to a better labour market will contribute more to GDP growth, the SITA newswire reported.
The labour market will continue to stagnate for some time according to the analysis. The Finance Ministry lowered its estimate of employment growth for 2011 to just 0.7 percent compared to its previous estimate of 1.2 percent growth. In 2012 employment is forecast to grow by 0.9 percent and in 2013 by 1.2 percent, SITA reported.
