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EU Commission: Slovak GDP Growth Good But 2010 Budget Deficit Large
Monday 29 November 2010 Zoom in | Print page
Brussels, November 29 (TASR) - Slovakia is expected to find itself among the top countries in the European Union when it comes to economic growth over the next three years, according to an autumn prognosis released by the European Commission on Monday.
On the other hand, the EU's executive branch has re-evaluated Slovakia's budget deficit in 2010 from the 6 percent of GDP predicted in its spring prognosis to the current 8.2 percent.
As far as 2010 is concerned, Slovakia's economic growth is expected to come top in the eurozone - 4.1 percent, with Sweden the only member of the EU as a whole expected to fare better with 4.8 percent.
In 2011, the Commission expects Slovakia's GDP to grow by 3 percent (the fifth-highest in the EU and second-highest in the eurozone), while it should swell to 3.9 percent in 2012 (third in the EU and top in the eurozone).
Growth in 2010 has been boosted by Germany's significant recovery following the crisis, as that country is Slovakia's largest trading partner. Conditions for foreign trade are expected to deteriorate slightly in 2011, however.
Although Brussels anticipates that this year's deficit will reach 8.2 percent of GDP, it has praised the new Government's commitment to reducing it.
The state debt is expected to stay roughly at the same level, namely 42, 45 and 47 percent of GDP in 2010, 2011 and 2012, respectively, reads the report.
Unemployment remains a sore point, as even Slovakia's lowest rate in 2008 - 9.5 percent - was still among the highest in the Union.
The jobless rate is expected to climb to 14.5 percent at the end of 2010, but gradual improvements should follow in 2011.
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