NBS releases more optimistic economic outlook for 2014

The Slovak economy will do better than originally expected in 2014 according to the Slovak central bank’s (NBS) latest forecast released January 28. “Compared to the December forecast, in the medium-term horizon the outlook for macro-economic developments has improved moderately due to the faster growth of the domestic economy and the expected better export performance in 2015,” informed NBS, as quoted by the TASR newswire.

The Slovak economy will do better than originally expected in 2014 according to the Slovak central bank’s (NBS) latest forecast released January 28.

“Compared to the December forecast, in the medium-term horizon the outlook for macro-economic developments has improved moderately due to the faster growth of the domestic economy and the expected better export performance in 2015,” informed NBS, as quoted by the TASR newswire.

The Slovak economy output is expected to increase by 2.3 percent of GDP year-on-year in 2014, which is a rise of 0.1 percentage points compared to the previous prognosis. The forecast for 2015 has improved by 0.2 percentage points, with the country’s GDP now expected to increase by 3.3 percent of GDP year-on-year. Inflation in 2014 is expected to decelerate to 0.6 percent, while a recovery of the consumer demand in 2015 should accelerate to 1.9 percent.

The improvement in the forecast is due to more favourable growth in investments and higher growth of consumption by the public administration. Conversely, private consumption in the second half of 2013 fell. The massive drop in inflation should result in a higher increase of real salaries, however, which will have a positive effect on consumption of Slovak households.

When it comes to employment, the latest prognosis didn't bring any changes. The jobs market has stabilised, with the latest data suggesting that creation of new jobs improved in the third quarter of 2013. “The gradual growth in employment should continue in the first half of 2014,” the NBS wrote.

(Source: TASR)
Compiled by Zuzana Vilikovská from press reports
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