Spectator on facebook

Spectator on facebook

Economic growth will continue accelerating

Brexit is the main risk to Slovakia’s growth.

Jobless rate should continue decreasing.(Source: TASR)

The dynamics of Slovakia’s economic growth should gradually accelerate in the coming years, according to the current macro-prognosis of the Finance Ministry. It expects the economy to grow by 3.2 percent of GDP this year, while next year it should accelerate to 3.7 percent, in 2018 to 4.1 percent and in 2019 to 4.6 percent.

The current prognoses thus remain nearly unchanged compared with January predictions. The only change is an increase in economic growth expectations for next year by 0.1 percentage points, the SITA newswire reported.

The Slovak economy should grow by 3.2 percent this year despite the worsened external environment, according to the analysts of the Institute of Financial Policy (IFP). The dynamics of Slovak economy next year should be improved also by investment activity in the automotive industry and the construction of the Bratislava ring road project.

The increase in economic growth may be negatively impacted by brexit. On the other hand, a positive risk is delayed, but a stronger impact is made by the quantitative easing on investments and household consumption in the eurozone, SITA wrote.

The current prognosis, however, does not include the risk of the results of British referendum. The Finance Ministry will deal with them only after they will be published, said its State Secretary Radko Kuruc.

“Of course, we all expect the United Kingdom will remain in the EU,” Kuruc said, as quoted by SITA. “In other case the Finance Ministry will prepare documents so the September prognosis will include this scenario.”

As for the labour market, the ministry expects the jobless rate to drop quicker than originally expected. It should fall by 0.7 percentage points to 9.7 percent this year, while it should continue decreasing to 8.7 percent in 2017, 7.5 percent in 2018 and 6.5 percent in 2019.

The employment should rise by 1.7 percent this year, and then slow down to 1 percent in 2017, 1.1 percent in 2018 and 0.9 percent in 2019. This year the analysts predict that nearly 40,000 new jobs will be created, as reported by SITA.

The ministry also revised the inflation prognosis. The consumer prices should drop by 0.3 percent this year, while in January it expected them to rise by 0.2 percent. In the following two years the prices should rise by 1.3 percent and 1.8 percent, respectively (down by 0.3 percentage points compared with the previous prognosis). In 2019 the ministry predicts the prices to rise by 2.1 percent.

The development will however positively impact the real salaries which should increase by 3.4 percent this year, 3 percent in 2017 and 2.7 percent in 2018, SITA wrote.

Topic: Economics


Top stories

EU roaming fees to end on June 15 – in theory

Slovak customers still waiting to find out how mobile operators will implement change.

Archaeologist pieces together early history of what is now western Slovakia Photo

For an archaeologist, the most important thing is his most recent rare discovery, says Július Vavák.

Students visited Svätý Jur as part of their European Wanderer project

How to sell Slovak books to English readers

Slovak literature makes it to the big bookstores of London, but it is unlikely to become a bestseller yet.

On Wednesday, Slovak literature will be presented in one of the biggest bookstores in London. Among the new books translated into English is also the anthology of current Slovak prose selected and translated by Magdalena Mullek and Júlia Sherwood.

General Prosecutor filed a motion for the dissolution of ĽSNS

The Slovak Supreme Court received a motion to dissolve the extreme right ĽSNS party founded and led by Marian Kotleba.

Jaromír Čižnár