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NBS: Slovak Economy Will Grow by 3.7 percent in 2010 (UPDATE)
Tuesday 15 June 2010 Zoom in | Print page
Bratislava, June 15 (TASR) - The Slovak central bank's (NBS) optimism vis-a-vis economic recovery in Slovakia this year has risen, with NBS in its medium-term prognosis presented on Tuesday predicting economic growth of 3.7 percent, up from the 3.2 percent expected three months ago.
According to NBS, the economy should strengthen thanks to improvements in foreign demand.
A slightly worse-than-before prediction was made for next year. The Slovak economy should expand by 4.3 percent in 2011, rather than by the previous estimate of 4.4 percent. Slovakia's GDP, hit by the global economic crisis and falls in foreign demand, shrank by 4.7 percent in 2009.
"In the medium term, it is expected that the revival of foreign demand will continue, which combined with foreseen expansion of production in the automotive industry in 2011 should lead to a growth in export performance for the Slovak economy as a whole," NBS governor Jozef Makuch told a press conference.
As regards the labour market, the central bank expects the unfavourable situation to persist this year, as the employment rate is predicted to fall by 1.9 percent.
Future developments in Slovakia's economy are facing considerable risks, as public-finance consolidation is needed in Slovakia and other EU countries.
NBS issued its prognosis only a day after a similar prognosis was released by the Finance Ministry, which also raised expectations vis-a-vis economic recovery. While the Finance Ministry previously expected growth to reach 2.8 percent this year, it's now counting on 3.2-percent.
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