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

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

Crisis shaves off wages

Pressure to increase wages has been reduced in the aftermath of anti-pandemic measures

Illustrative stock photo

Coalition shakes, Matovič twists and shouts

Plagiarism scandal is not over yet, but few believe it could be fatal for the ruling coalition.

Boris Kollár (left) and Igor Matovič.

Corruption suspect with alleged ties to Kočner was detained, but later released

Norbert Bödör has been charged with money laundering in one of the largest corruption schemes in Slovakia.

Norbert Bödör arrived to the Specialised Criminal Court on July 5.