3. August 2020 at 16:46

Slovak economy is accelerating. Third quarter may bring a slight increase

The Council for Budget Responsibility has offered revised economic predictions in its July prognosis.

Illustrative stock photo Illustrative stock photo (source: Pixabay)
Font size: A - | A +

Slovakia’s economy is accelerating again. After hitting bottom in April, when it fell 20 percent year-on-year, it already halved its loss in June.

The development is even better than in other developed economies whose condition is improving only moderately.

SkryťTurn off ads
SkryťTurn off ads
Article continues after video advertisement
SkryťTurn off ads
Article continues after video advertisement
Too early for rose-coloured glasses. Why Slovakia's industry dropped the most in Europe
Related article
Too early for rose-coloured glasses. Why Slovakia's industry dropped the most in Europe

“We expect that despite the accelerating economy, the domestic capacities in industry and services will not be fully used during the whole year,” the Council for Budget Responsibility (RRZ) stated in its short-term economic prognosis from July 2020.

At the same time, although the sentiment indicators abroad indicate certain acceleration of demand, the recovery is uncertain due to the worsening epidemiological situation across the globe.

Better 2Q GDP forecast

RRZ improved its prognosis for the economic drop in the second quarter of the year. While in June, the gross domestic product (GDP) is expected to fall 13.7 percent quarter-on-quarter and 17.3 percent y-o-y, it now forecasts that the economy will fall by only 11 percent q-o-q and 14.8 percent y-o-y.

SkryťTurn off ads

The rest of this article is premium content at Spectator.sk
Subscribe now for full access

Subscription provides you with:

  • Immediate access to all locked articles (premium content) on Spectator.sk

  • Special weekly news summary + an audio recording with a weekly news summary to listen to at your convenience (received on a weekly basis directly to your e-mail)

  • PDF version of the latest issue of our newspaper, The Slovak Spectator, emailed directly to you

  • Access to all premium content on Sme.sk and Korzar.sk

SkryťClose ad