BRATISLAVA, November 10, (WEBNOVINY) – The prognosis released by the European Commission confirms grim outlooks and rapid economic downturn. The Commission’s paper regularly published in autumn prognosticates Slovakia’s GDP growth in 2012 at a mere 1.1 percent, which is 0.6 percent behind the outlook provided last week by the Finance Ministry. The budget gap is likely to be wider than the expected EUR 600 million if the Commission’s prognosis becomes reality.
In the paper issued in spring, the EU’s executive body projected Slovakia’s economic growth at 4.4 percent for next year. The EC also downgraded its estimate of GDP growth for this year, from 3.5 percent to 2.9 percent. The Slovak economy should expand at the same pace in 2013 as well. Inflation prognoses were revised, too. The Commission increased the estimate for this year from 3.6 percent to 4 percent and slashed the 2012 forecast from 2.9 percent to 1.7. Price growth is expected to accelerate in 2013 to 2.1 percent.
The Commission confirmed concerns over the fiscal consolidation plans. Its projections of the Slovak general government deficit worsened. The EC prognosticates a deficit of 5.8 percent of GDP for 2011, 4.9 percent of GDP for 2012 and 5 percent for 2013. The paper published in spring estimated the deficit at 5.1 percent of GDP in 2011 and 4.6 percent in 2012.
SITA
