BRATISLAVA, March 15, (WEBNOVINY) — The Finance Ministry is increasingly optimistic regarding this year’s economic development in Slovakia. After the finance minister admitted last week that economic growth might be some half a percentage point higher than the official prognosis at 1.1 percent, now the department’s Financial Policy Institute revised upward its estimate even higher. According to the updated estimate of the department, Slovakia’s GDP is expected to grow 2.3 percent in 2012.
“Though it is a considerable improvement compared with the growth prognosis in January of 1.1 percent, the positive impact on public finances is relatively small only at EUR 54 million,” the ministry informed on Thursday. Based on current data the general government deficit should achieve 4.4 percent of GDP this year.
According to official data, Slovakia’s general government in 2011 reported a deficit of five percent of GDP. This figure includes also loans at EUR 633 million for hospitals and the state-run railway company from the era of Robert Fico for years 2008-2010, which means an increase in the deficit by 0.9 percent of GDP. The European Statistical Office Eurostat decided on the inclusion of these non-refundable loans into the deficit last year.
SITA
