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Gov't: Slovak Economic Slump Due to Slowdown in Trading Partners
Wednesday 13 January 2010 Zoom in | Print page
Bratislava, January 13 (TASR) - According to the Economy Ministry, the most significant reason for the economic slump in Slovakia is the slowdown of economic growth in the country's trading partners.
"This results in lower demand for Slovak exports and in secondary effects - a drop in employment and domestic demand," states the Proposal for a Domestic Demand Strategy as the Main Pre-requisite for Stimulating the Business Environment in the Future, which was passed by the Slovak Government on Wednesday.
The ministry's materials point out that Slovakia's weak link in the current global economic crisis is its dependence on other countries affected by the crisis. "The share of exports in Slovakia's GDP is 87 percent, while more than 85 percent of exports go to other European Union countries. Within the EU, the Slovakia economy is open to an above-average extent, which causes high sensitivity to the external environment," states the ministry.
According to the ministry, the main opportunities for stimulating domestic demand are investment projects financed from EU funds - such as completing the motorway network and the 3rd and 4th reactor blocks at the nuclear power plant in Mochovce (Nitra region).
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