BUSINESS IN SHORT

Mixed EC forecast for Slovak economy

IN ITS autumn outlook report the European Commission forecasts a 5.8 percent contraction in Slovakia’s economy in 2009. However, Slovakia’s GDP is predicted to grow by 1.9 percent in 2010, rising to 2.6 percent in 2011, the SITA newswire reported.

IN ITS autumn outlook report the European Commission forecasts a 5.8 percent contraction in Slovakia’s economy in 2009. However, Slovakia’s GDP is predicted to grow by 1.9 percent in 2010, rising to 2.6 percent in 2011, the SITA newswire reported.

While positive, these figures are much lower than those recorded during the pre-crisis boom, reads the prognosis. This reflects the influence of several factors playing in various directions.

On the positive side, economic indicators have provided some signs of stabilisation in economic activity. Business confidence also appears to be recovering slowly, while exports have stopped falling, SITA wrote.

The EC wrote that one main challenge will be to ensure that the downturn does not affect the long-term potential growth of the Slovak economy. While subject to considerable uncertainties, the available estimates suggest that Slovakia’s potential growth will be at least temporarily affected by the crisis, mainly due to the slower accumulation of productive capital.

The commission does not rule out a further rise in the already high structural rate of unemployment. Slovakia’s jobless rate is expected to reach 12.3 percent in 2009 and rise to 12.8 percent in 2010. A modest drop is expected in 2011, to 12.6 percent.

In view of the shallow predicted recovery in 2010 and consolidation of the public finances announced by the government, a budget deficit of 6.3 percent of GDP is predicted by the EC for 2010. The commission’s forecast suggests it does place complete confidence in the figures of the Slovak government.

The latest state budget forecasts the budget gap narrowing from over 6 percent this year to 5.5 percent in 2010, 4.2 percent in 2011 and to within the Maastricht criteria’s 3 percent of GDP in 2012. However, the EC expects only a moderate decrease in the deficit to 6 percent of GDP in 2010 and to 5.5 percent in 2011, SITA reported.

Top stories

Sweden is a European leader in further education, with 34.3 percent of involved adults in 2019.

Further education gives hope, but not to people in Slovakia

Stepping up to world-class further education provision does not end with a strategy, examples from abroad show.


11. jún
An interactive statue by the Love Bank museum in Banská Štiavnica.

Instead of love, "garden gnomes" cause uproar in a Slovak UNESCO town

Your weekly dose of easy reads about Slovakia, including EURO 2020 and geoparks.


11. jún
Recent tax measuresmayhelp to fill state coffers.

Historic deal on minimum global tax of 15 percent. Will it become relevant?

The planned tax reforms are both ambitious and complex; it is already clear that not everything will be enforceable.


5 h