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Analysts: Food Prices May Rise by 7 percent in Some Months of 2011
Thursday 30 December 2010 Zoom in | Print page
Bratislava, December 30 (TASR) - The main challenge that the Government will have to face next year is the planned consolidation of public finances, whose deficit is projected to drop below 5 percent of GDP, analysts approached by TASR concur.
"The economy will need to restore its reputation in the area of public finances and stick to the path of planned consolidation," said Slovenska Sporitelna bank analyst Maria Valachyova. She noted, however, that the consolidation will curtail economic growth and raise prices by nearly 1 percent.
Notwithstanding the plans, Slovakia's GDP is expected to go up by more than 3 percent, which should be enough to ensure job creation. "In addition, the slowing down of growth by several tenths of a percent is a minor threat compared to the path of falling into inappropriate debt," said Postova Banka analyst Eva Sadovska.
Meanwhile, according to Sadovska, food prices are expected to rise by as much as 7 percent in some months, with higher prices of commodities and oil on global markets partly to blame.
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