Experts warn of deeper recession if COVID-19 cases spike

Slovak economy is projected to fall by nearly 10 percent in 2020.

Finance Minister Eduard Heger and his colleagues of the Institute for Financial Policy present Slovakia's latest macroeconomic forest on June 23, 2020. Finance Minister Eduard Heger and his colleagues of the Institute for Financial Policy present Slovakia's latest macroeconomic forest on June 23, 2020. (Source: TASR)

In its latest forecast, the Slovak Finance Ministry estimates that the country will experience an economic downturn of 9.8 percent, worsening its estimate by 2.6 percentage points compared to April.

The country's economic recovery is to start in the second half of this year, with a projected growth of 7.6 percent in 2021. The ministry has claimed the Slovak economy will return to its pre-coronavirus figures in late 2022.

Domestic and foreign demand will decrease, and businesses will defer their investments. At the same time, unemployment is expected to increase while wage pressures will ease.

The ministry relies on government consumption when it comes to boosting the economy, as well as on European money. It is, simultaneously, worried a second COVID-19 wave would intensify the recession.

Foreign and domestic demand down

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