BRATISLAVA, January 27, (WEBNOVINY) — The situation in Slovak economy should moderately improve on the whole. The government’s austerity package as well as reduction of public spending will negatively affect the development. At Thursday’s news conference dedicated to macroeconomic development, Peter Mihok, President of the Slovak Chamber of Commerce and Industry further said that some prepared changes, for example in the Labor Code, could reduce the negative impact of the austerity package. Mihok explained that changes in the Labor Code could create conditions for a higher flexibility of the labor market.
According to Mihok, a more responsible approach to drawing EU funds might contribute to economic growth, too. He added that the current situation is rather unsatisfactory. The Chamber of Commerce president opines that the key to economic recovery is renewal of confidence. “The crisis has not ended simply because the crisis of confidence continues,” he said.
Governor of the National Bank of Slovakia (NBS) Jozef Makuch agrees that the government’s consolidation package will slow down economic growth. He, however, points out that a slowdown in GDP growth will not occur only in Slovakia, but in other countries, too, while Slovakia will continue to be one of the fastest growing economies. Makuch added that the expected y/y decrease in economic growth in 2012 is not viewed negatively, but as inevitable in order to maintain a stable, sustainable growth in the future. According to NBS’s expectations, the Slovak economy should grow by approximately four percent next year.
SITA