The European Commission has given the chapter on Slovakia in its regular spring economic prognosis the headline: 'Moderate Growth Ahead'. According to the commission's estimates, Slovakia and Poland will see the fastest economic growth in 2010, namely 2.7 percent of GDP. The prognosis for 2011 is even more optimistic, with Slovakia’s GDP expected to grow by 3.6 percent, the TASR newswire reported on May 5.
As far as unemployment goes, 14.1 percent of Slovaks are expected to be out of work in 2010 compared to 9.8 percent overall in the EU, giving Slovakia the fifth-highest unemployment rate in the union. The rate in Slovakia is predicted to fall to 13.3 percent in 2011.
Most of the foreign investments in Slovakia this year are planned in the automobile industry, which was the driving force behind Slovakia's economy in the recent past. The European Commission cautions that specialisation in a single field makes Slovakia vulnerable in terms of foreign demand for specific products.
Slovakia's public finances are vulnerable as well because of the global economic crisis. This is illustrated mainly by the state budget deficit, which grew from 2.3 percent in 2008 to 6.8 percent of GDP in 2009. With respect to planned cuts in expenditures, the European Commission expects Slovakia's public-finance deficit to drop to 6.0 percent of GDP in 2010, and to 5.4 percent a year later.
Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.
6. May 2010 at 10:00