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GDP growth forecasts reduced

SLOVAKIA is expected to continue in its economic growth, but its dynamics should be lower that originally forecast due to an expected slowdown of leading trade partners. The European Commission as well as the Organisation for Economic Cooperation and Development (OECD) issued updated economic forecasts for 2015 and 2016. José Ángel Gurría, Secretary General of the OECD, himself came to Slovakia to present the updated outlook and congratulate Slovakia on its fight against the economic crisis.

SLOVAKIA is expected to continue in its economic growth, but its dynamics should be lower that originally forecast due to an expected slowdown of leading trade partners. The European Commission as well as the Organisation for Economic Cooperation and Development (OECD) issued updated economic forecasts for 2015 and 2016. José Ángel Gurría, Secretary General of the OECD, himself came to Slovakia to present the updated outlook and congratulate Slovakia on its fight against the economic crisis.

Gurría praises the government for managing to maintain solid growth compared to other EU members, to grow productivity and consolidating public finances. Nevertheless, Gurría added that Slovakia must continue to work hard, because its position as a small open economy in an environment of weakening trading partners is increasingly difficult.

“My message is congratulations,” Gurría said, as cited by the SITA newswire. “You did a lot of work in a complex environment, but also there is still much work to do. Count on the OECD in preparing better policies for a better life in Slovakia.”

But he added that in order to ensure long-term sustainable and inclusive growth, Slovakia needs to tackle its high unemployment and regional disparities.

“Unemployment is still high, although it has been falling recently, which is a piece of good news,” said Gurría, as cited by the TASR newswire. He pointed mainly to unemployment among the young.

The OECD forecasts 2.6 percent growth for 2014. Next year, economic growth should accelerate to 2.8 percent and in 2016 to 3.4 percent, according to forecasts.

Earlier in the week the European Commission (EC) also updated its forecast for Slovakia, decreasing the expected growth rate in 2015 from 3.1 percent to 2.5 percent in light of falling prospects for leading trade partners. The German economy’s growth rates halved in 2015 to 1.1 percent instead of the previously expected 2 percent, as did France from 1.5 percent to 0.7 percent.

The EC forecasts that the EU economy will grow by 1.5 percent overall, down from 2 percent because of the Russo-Ukrainian conflict and impacts of sanctions. The EC predicts 3.3 percent growth for Slovakia in 2016.

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