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NBS confirms economic recovery

THE SLOVAK economy will do considerably better than previous forecasts predicted.

THE SLOVAK economy will do considerably better than previous forecasts predicted.

The National Bank of Slovakia (NBS) increased its estimate of GDP growth for 2013.

The recent medium-term forecast expects Slovakia’s GDP to grow 0.9 percent year-on-year, compared with the previous forecast that counted with 0.6 percent growth, the TASR newswire reported.

“The Slovak economy recorded a more dynamic than expected development in the second quarter, which was influenced also by an equally favourable development in the eurozone,” NBS Deputy Governor Ján Tóth said. “That was projected in higher growth in exports, which represented the main source of Slovak GDP growth.”

In 2014, the NBS expects the Slovak economy to grow by 2.1 percent and in 2015 by 3.2 percent. Compared to the previous forecast these numbers are slightly lower, which Tóth attributed to the consolidation of public finances and lower foreign demand.

The NBS forecasts that employment will rise by 1 percent by the end of 2013, while inflation is expected to remain relatively low, which could help revive domestic consumption, TASR wrote.

Unemployment rate data for July and August show that the negative trend in the labour market has stopped, Tóth said, adding that the number of available job positions has increased.

“Therefore, in the coming period we expect stabilisation of the employment rate on a quarter-to-quarter basis, and gradually with the acceleration of the economy, new job positions should start emerging,” Tóth said.

The employment rate is expected to increase in 2014 and 2015, while the unemployment rate should drop to 13 percent.

The NBS considers the risks in the current economic growth prognoses to be balanced, the SITA newswire reported.

While there is reason for moderate optimism over the further development of the economy, one should not forget 2010, when three quarters of positive development were followed by a fall.

“The [current] optimism is on a more solid basis than it was in 2010,” SITA quoted NBS Governor Jozef Makúch as saying.

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