Kažimír: Slovak economy is in free fall

Slovak economy contracted by 5.2 percent q/q during the first quarter of 2020.

National Bank of Slovakia's governor Peter KažimírNational Bank of Slovakia's governor Peter Kažimír (Source: TASR)

While Slovakia has been faring well in its fight against the novel coronavirus, the lockdown brought its economy to a decline. It contracted by as much as 5.2 percent during the first quarter of 2020, compared with the previous quarter, according to an estimate published by Eurostat, the statistical office of the European Union. This was one of the deepest drops within the EU.

Related articleSlovakia experienced record drop in export and import in April Read more 

Moreover, the National Bank of Slovakia (NBS), the country’s central bank, downgraded its spring forecast, predicting that the Slovak economy will contract by 10.3 percent over 2020, especially due to the decline in foreign demand and the suspension of a major part of the domestic economy.

“The Slovak economy has found itself in free fall,” said NBS governor Peter Kažimír, as cited by the TASR newswire when introducing the latest medium-term prognosis on June 9. “It’s as if we travelled back in time to 2017. Although the economy will recover and we’ll see GDP growth next year, these processes will be slower than we thought a month ago. We’re still living in a time of great uncertainty.”

Kažimír believes that measures taken by the Slovak government, the NBS and the European Central Bank (ECB) prevented the economy from falling even deeper, and this is happening in co-operation with the financial sector.

The rest of this article is premium content at Spectator.sk
Subscribe now for full access

I already have subscription - Sign in

Subscription provides you with:
  • Immediate access to all locked articles (premium content) on Spectator.sk
  • Special weekly news summary + an audio recording with a weekly news summary to listen to at your convenience (received on a weekly basis directly to your e-mail)
  • PDF version of the latest issue of our newspaper, The Slovak Spectator, emailed directly to you
  • Access to all premium content on Sme.sk and Korzar.sk

Get daily Slovak news directly to your inbox

Theme: Economics

Read more articles by the topic

Top stories

Hospital manners expose the toxicity of Kollár

Unjustified privileges overshadow some good news of the coalition's work. Halloween testing will not be repeated during advent time.

PM Igor Matovič (l) and Speaker of Parliament Boris Kollár

Sulík’s party benefits from the dispute with PM Matovič

The Hlas party of former PM Pellegrini is rising, too.

Economy Minister Richard Sulík (l) was charged by PM Igor Matovič (r) to purchase millions of antigen tests.

Highway company has to return more than €115 million to the state

It violated rules while constructing four sections of the D1 and D3 highway.

The construction of the D1 highway stretch between Lietavská Lúčka and Dubná Skala in March 2019.

Investors pursued projects and transactions despite the virus

Investors pursued projects and transactions despite the virus. Check out the 2020 investment highlights from Slovakia.

The visualisation of new Istropolis building