BRATISLAVA, September 23, (WEBNOVINY) – Banks are increasingly pessimistic about prospects for economic growth in Slovakia. Bank analysts have revised downward their prognoses for this year’s and next year’s economic growth. According to the September round of the regular survey of the National Bank of Slovakia among analysts, the forecast of economic growth for this year was reduced compared to August by further two tenths of a percentage point to 2.9 percent. In July, bank analysts expected the economy to grow this year by 3.6 percent. They expect in the third quarter year-on-year GDP growth in Slovakia to slow down to 2.7 percent from 3.3 percent in the second quarter and 3.5 percent in the first quarter.
Analysts similarly expect a gradual deterioration in outlook next year. While in July they expected next year’s GDP growth at 4.3 percent, in August it was 2.9 percent and in September 2.7 percent. Bank analysts have also reduced their forecast for next year’s growth in prices. Prognosticated inflation measured by the EU harmonized index of consumer prices was reduced by 0.1 percentage point to 3.2 percent and inflation measured by national methodology also by 0.1 percentage point to 3.1 percent. For 2011, price growth forecasts remain unchanged – harmonized inflation at 4.3 percent and 4.2 percent according to national methodology.
It appears that negative developments on global financial markets and fears of a global downturn are already being passed on to the Slovak economy. Also the Ministry of Finance has reduced its in forecast for economic growth for next year in late August by a full one percentage point to 3.4 percent. The National Bank of Slovakia is also likely to revise downward its forecasts that will be published next week.
SITA
