Slovakia's economic growth should reach 1.8 percent in 2012 according to a report released by the European Commission on May 30, the TASR newswire reported. The Commission stated that the Slovak economy continues to be dependent on foreign demand which has resulted in lower growth in 2012. The report also mentioned several serious challenges, such as the country’s high unemployment rate (13 percent) which is expected to drop moderately only as late as in 2013. The European Commission especially pointed to youth unemployment.
The report stated that Slovakia has introduced a series of measures aimed at bolstering its fiscal situation, making its pension system more sustainable, and increasing the level of transparency in state and other public commissions, TASR wrote, noting that the areas with the largest scope for improvement are reform of the labour market and the system of education and expert training.
According to the EU's executive body, the tax burden on low-income employees in Slovakia is too high while only a tiny fraction of unemployed people receiving social benefits are interested in exchanging their current situation for a low-paying job. In the medium term, Slovakia's budget deficit remains too high and the country needs to improve its tax collection, according to the EC report, TASR wrote.
Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.
31. May 2012 at 10:00