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FinMin: Economic growth to reach 2.3% this year, deficit to drop to 4.4%

Slovakia's economy should grow by 2.3 percent this year, according to a prognosis published by the Finance Ministry's Financial Policy Institute (IFP) on Thursday, March 15.

Slovakia's economy should grow by 2.3 percent this year, according to a prognosis published by the Finance Ministry's Financial Policy Institute (IFP) on Thursday, March 15.

This is a significantly higher figure than the previous estimate, which stood at 1.1 percent. According to the current prognosis, the public finance deficit should amount to 4.4 percent of GDP in 2012 instead of the originally expected 4.6 percent. This higher level of growth should bring an extra €54 million into the state coffers, the TASR newswire quoted the IFP as saying.

Apart from higher economic growth, the public finances will also be positively influenced by lower EU budget levies for Slovakia, higher incomes from dividends, an expected improvement in the financial management of local authorities and savings linked to the halting of privatisation processes. According to preliminary figures, the public finance deficit in 2011 reached 5 percent of GDP. Around 0.9 percent (€663 million) was represented by originally unrecorded debts of hospitals and rail companies in 2008-10. Eurostat ruled that these debts had to be included in the 2011 deficit. If the future government wants to meet its aim of cutting the deficit to 2.9 percent of GDP in 2013, it will have to save €1.165 billion.

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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