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 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.

Source: TASR

Compiled by Radka Minarechová from press reports

The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

Get daily Slovak news directly to your inbox

Theme: Economics

Read more articles by the topic

Top stories

Who was behind the sale of one of the biggest banks in Slovakia

The largest law firms were involved in several innovative projects, too.

Which are the largest law firms in Slovakia?

For the first time, the ranking also provides an overview in partial categories of law.

Using only antigen tests for mass testing was the right move, says American mathematician

The rounds of testing work like the layers of a filter, removing a large fraction of infected individuals in each round, says Daniel Larremore.

Free antigen testing

News digest: Sulík presents his pandemic plan, but PM Matovič remains critical

Rules for entering Spain change. Former police chief Gašpar remains in custody. State auctions the 5G network frequencies.

Richard Sulík presented his pandemic plan on November 23.