BRATISLAVA, May 12, (WEBNOVINY) – Slovakia’s economic activity will accelerate in 2012 after a slight slowdown in 2011, the International Monetary Fund (IMF) forecasts in its outlooks for European economies. The GDP growth figures are based on the IMF’s prognosis released in April, which stipulates that Slovakia’s GDP will grow 3.8 percent this year and 4.2 percent next year. The country will thus beat the euro zone’s median projected at 1.6 percent in 2011 and 1.8 percent in 2012. Last year, Slovakia reported GDP growth of 4 percent.
The IMF has confirmed that prices will grow along the bolstering economic activity. The authority forecasts a 3.4-percent increase in consumer prices for this year and 2.7 percent in 2012. The fund further prognosticates the 2011 general government deficit at 5.2 percent and 3.9 percent a year later. General government debt is expected to gradually grow from last year’s 42 percent of GDP to 46.2 percent.
The Slovak Cabinet pledged to slash the general government deficit from nearly 8 percent in 2010 to this year’s 4.9 percent. The debate about the 2012 budget draft has commenced. The Cabinet on Wednesday approved the basic budget outlines that project the general government deficit at 3.8 percent next year.
SITA
