OECD Secretary-General Mathias Cormann (left) and PM Robert Fico (right). (source: TASR)
According to OECD, the growth of the country's economy should accelerate from last year's 1.1 percent to 2.1 percent this year. In addition, inflation should gradually fall from 11 percent in 2023 to 3.4 percent this year.
The new Economic Survey of Slovakia published on Monday also states that in 2025, the economy should grow further to 2.6 percent, and inflation fall to 2.7 percent.
"Risks are mainly linked to a possible rebound in energy prices and problems in supply chains," explained the OECD. It adds that the Slovak economy proved resilient during the energy crisis, and that improving the sustainability of public finances is a key challenge, as an ambitious consolidation strategy is needed in the face of a significantly ageing population.
The organisation recommends a progressive consolidation of public finances to Slovakia - to reduce the deficit by 5.5 percent of GDP within five years. This, together with reforms in several areas, should ensure that public debt falls below 40 percent of GDP before 2050, writes Denník N. But if the state saved only 4.5 percent of GDP, it would only be enough to stabilise the debt at today's level of around 60 percent of GDP.
According to OECD, any measures to help with the rising cost of living should be aimed at households not sufficiently covered by existing measures; increasing the employment of women with small children would help reduce the wage gap between men and women in Slovakia, as well as limit the impact of a shrinking labour force. This would be helped, for example, by improved access to pre-school facilities.
"We welcome the Economic Survey for 2024. The government is still practically new and therefore we can translate the recommendations the OECD makes for our individual policies," said PM Robert Fico (Smer) following the meeting with OECD Secretary-General Mathias Cormann.
Echoing the PM's statement, the Deputy PM for EU Funds and the Recovery Plan, Peter Kmec (Hlas), said that the OECD recommendations are in line with the Slovak government's setting.
However, the Labour Ministry later rejected the recommendation to scrap the 13th pension for some pensioners and to tax pensions, stating that the proposals are dangerous and totally unacceptable. The ministry's state secretary Branislav Ondruš went on to ensure people that nothing will change in regards to the proposal of introducing a proper and fair 13th pension.
