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NBS: Economy Should Grow by 4.3 Percent in 2010 but Slow Down in '11
Tuesday 28 September 2010 Zoom in | Print page
Bratislava, September 28 (TASR) - The Slovak central bank (NBS) is more optimistic concerning the development of the Slovak economy for this year than it was three months ago, NBS governor Jozef Makuch told a press conference on Tuesday in Bratislava.
According to the current NBS prognosis, the Slovak economy should grow by 4.3 percent this year, while the original expectation was for 3.7 percent. The new-found optimism stems especially from revived foreign demand, specified Makuch.
The economy should decelerate next year again, however, due to the Government's measures aimed at consolidation of public finances. Thus, NBS significantly reduced its estimate of growth for 2011 from the original 4.3 percent to 3 percent.
While this-year's inflation measured by the common European methodology should not exceed 1 percent, the growth of prices in 2011 should accelerate to 3.8 percent, especially due to the VAT increase from 19 to 20 percent and the raising of some excise taxes. NBS estimated in June that this figure would only reach 2.7 percent next year.
The regular quarterly revision of the NBS's medium-term prediction came shortly after the Finance Ministry also revised its figures. It raised the original expectation of this-year's growth from 3.2 to 4 percent. According to the ministry, 2011 should see a temporary deceleration of the economy back to 3.3 percent. The deceleration, they says, will be attributable to the aforementioned package of austerity measures.
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