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ECONOMIC BRIEFS

SAV economic branch issues '97 forecast

The Institute for Forecasting of the Slovak Academy of Sciences on February 10 made public its forecastfor 1997. Aming the highlights are these: "More than in previous years, economic development in 1997 will be dependent on the coordination of monetary and fiscal policies, of which the primary goal should be keeping the Slovak currency stable. While the income side of the government budget stems from rational expectations of a decline in the share of tax revenues on GDP, the expenditures side is more short-term oriented rather than respective of objective needs. The deficit for 1997 severely deepens internal indebtedness, increases the risk of losing price and exchange rate stability, and amplifies the risk of an increase in Slovakia's external debts."

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