NBS: Economy will grow by 4.2 percent this year

The Slovak central bank (NBS) said on Tuesday, December 7, that it has slightly reduced its expectations concerning economic growth in 2010, reducing the figure from the 4.3 percent expected in September to 4.2 percent. The adjustment in the figure was caused by a higher level of imports than expected in the third quarter of 2010.

The Slovak central bank (NBS) said on Tuesday, December 7, that it has slightly reduced its expectations concerning economic growth in 2010, reducing the figure from the 4.3 percent expected in September to 4.2 percent. The adjustment in the figure was caused by a higher level of imports than expected in the third quarter of 2010.

According to NBS governor Jozef Makúch, the bank expects economic growth to decelerate to 3 percent of GDP in 2011. This will be a result of the government's consolidation measures and developments in foreign demand in particular. Growth should accelerate again in 2012, to 4 percent.

The NBS at the same time reduced its estimate for year-on-year inflation measured by EU methodology from the 0.9 percent predicted three months ago to 0.7 percent. "The growth in prices of foodstuffs that we expected in September hasn't taken place so far, so we expect a lower rate of growth in prices," said head of the NBS currency policies department Renáta Konečná at a press conference, as quoted by the TASR newswire. According to her, inflation should reach a peak of 3.9 percent in 2011 due to higher food and energy prices, higher excise taxes and VAT.

The Finance Ministry predicted 4 percent growth in GDP in 2010 in September. According to the OECD, the Slovak economy should grow by 4.1 percent this year. The European Commission and the International Monetary Fund have predicted the same figure.

Source: TASR

Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

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