EU expects Slovakia to enter a deep recession this year

Private consumption, investment and trade suffer. Swift recovery expected in 2021.

Restaurants and bars are allowed to open outdoor terraces as of May 6. Restaurants and bars are allowed to open outdoor terraces as of May 6.

Slovakia’s economy is expected to enter a deep recession in 2020 as private consumption, investment and trade suffer. Since the impact of COVID-19 and the containment measures put in place to fight it are likely to subside in the second half of 2020, a swift recovery is expected in 2021, the European Commission wrote about Slovakia in its latest spring forecast.

The Spring 2020 Economic Forecast projects that the euro area economy will contract by a record 7.75 percent in 2020 and grow by 6.25 percent in 2021. The EU economy is forecast to contract by 7.5 percent in 2020 and grow by around 6 percent in 2021.

Growth projections for the EU and the euro area have been revised downward by around 9 percentage points compared to the Autumn 2019 Economic Forecast.

Related articleCentral bank governor: Things are worse for Slovakia than expected Read more 

The pandemic has affected all member states. The drop in output in 2020 and the strength of the rebound in 2021 are expected to differ significantly across the Union.

Slovakia's real GDP is forecast to contract by 6.75 percent in 2020 after expanding 2.3 percent in 2019. This is closer to the most optimistic scenario expected by the National Bank of Slovakia (NBS) in its latest GDP estimate from late April. The NBS predicts a 9-percent decline is most likely.

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