BRATISLAVA, June 27, (WEBNOVINY) — The growth rate of Slovakia’s economy will reach 3.5 percent this year, according to the latest prognosis of the Institute of Informatics and Statistics – Infostat, established by the Statistics Office. This means that the dynamics of GDP growth in Slovakia should equal the Statistics Office-confirmed growth pace in the first quarter of this year.
Along with a slight slowdown in Slovakia’s economic growth rate from last year’s 4 percent to 3.5 percent, Infostat also expects a more significant revival on the labor market. Employment should surge 1.5 percent to 2.351 million people this year, according to the labor force survey. The high price growth should, on the other hand, bring a 0.5-percent decline in real wages this year. Infostat forecasts this year’s average inflation at 4 percent while nominal wages are expected to see only a 3.5-percent increase.
The latest prediction of the Finance Ministry forecasts a decline in real wages this year. The ministry has upgraded this year’s estimate of Slovakia’s economic growth to 3.6 percent this month but it has also increased the expected inflation, which should result in a 0.6-percent downfall in real wages. This will not necessarily reduce living standard of Slovaks, according to Finance Ministry’s Financial Policy Institute (IFP). “ In spite of a decrease in real wages, the positive development on the labor market will increase the overall income of the people as well as household consumption from the February prediction in real figures,“ stated the institute.
The Slovak economy grew 3.5 percent y/y in the first quarter of this year, according to revised data of the Slovak Statistics Office, which confirmed its estimate of economic development from mid-May. In the January-March period, GDP of EUR 15.833 billion was generated, which is an increase of 4.5 percent y/y in current prices. In quarterly terms, the gross domestic product net of seasonal influences went up one percent in Q1.
SITA
