Spectator on facebook

Spectator on facebook

NBS predicts higher economic growth and price stagnation

THE NATIONAL Bank of Slovakia (NBS), the country’s central bank, has revised its December prognosis, predicting higher economic growth and a zero increase in prices in 2015.

The most significant change to its previous forecast is the fall in the prices of oil, slightly adjusted by the weaker exchange rate of the euro.

“The positive demand shock impacted the improvement of outlooks for Slovakia’s economy in the medium term,” the NBS said, as quoted by the TASR newswire.

The economic growth should accelerate to 2.9 percent this year and to 3.6 percent in 2016. The original prognosis forecast the economy to rise at 2.6 percent this year and 3.3 percent in 2016.

The lower prices of oil should positively impact the most important business partners of Slovakia, thanks to which the demand for Slovak products and services abroad should increase. This year, however, it will be the domestic demand which will affect GDP growth.

The expected fall in energy prices in 2015 and 2016 also affected inflation predictions.

“The prices will stagnate this year, similarly to 2014,” NBS said, as quoted by TASR, adding that a more significant rise in prices at 1.4 percent is expected in 2016.

Better development of domestic demand will also impact the increase in employment. It should increase by 0.9 percent this year and by 0.7 percent in 2016, according to the NBS.

The nominal wages will rise with a slower tempo than in the previous prognosis, as a result of a low increase in prices. In real terms, however, the situation of households will improve.

Top stories

Kiska: Even Europe has its aggressive neighbour

President Andrej Kiska addressed UN commenting poverty, instability and climate change.

President Andrej Kiska

Ryanair cancels some flights from and to Bratislava

The Irish low-cost airline publishes full list of cancellations

Irish budget airline Ryanair is believed to be cancelling up to 50 flights every day over the next six weeks because it "messed up" its pilots' holiday schedules.

No fees bring higher summer roaming

EU regulation raises the volume of roaming calls and data with Slovak mobile operators .

People should pay attention on used data abroad.

Fundamental values explored at Divadelná Nitra 2017

This time round, the Slovak, European and US ensembles at the theatre festival focus on #fundamentals, i.e. basic values and the essence of all things.

Nature Theatre of Oklahoma: Pursuit of Happiness