BRATISLAVA, February 9, (WEBNOVINY) — Slovak economy should grow 1.1 percent this year. The Finance Ministry confirmed its preliminary prognosis on Thursday that downgraded its earlier prediction of 1.7-percent growth. The ministry however preserves its original predictions for upcoming years. GDP should thus surge 2.7 percent in 2013 and 3.6 percent in 2014.
“Slovakia as a small and open economy sensitively responds to deteriorated situation abroad. The new prognosis takes into account implementation of additional austerity measures in countries like Italy and France which will have a short-term negative impact on the economic growth. Nevertheless, we do not assume that Slovakia will follow the eurozone into recession this year,” reads the latest prognosis.
The ministry continued that the prognosis for 2013 also comprises Slovakia’s commitment to adopt more consolidation measures necessary for squeezing the deficit below 3 percent of GDP in line with the Maastricht Treaty. Despite that, the Finance Ministry has not revised its prognosis for 2013 and underscored that the 2.7-percent growth should secure stabilization of unemployment.
“We currently view potential risks of not meeting this new prognosis as balanced unlike the continuing negative risks in previous prognoses,” stated the prognosis. The committee for macroeconomic prognoses regards predictions realistic, or conservative. The ministry does not expect the revised prognosis as a to threat to public finances this year when the planned public administration deficit is planned at 4.6 percent of GDP.
SITA
