BRATISLAVA, February 6, (WEBNOVINY) — Slovak economy is likely to grow at a slower place than the state originally predicted in its calculations. This development stems from the preliminary prognosis of the Financial Policy Institute (IFP) at the Finance Ministry that the Macroeconomic Committee is to analyze in upcoming days. Analysts from various state and private institutions will assess the prognosis, according to which the economic growth should reach 1.1 percent this year versus the originally expected 1.7 percent.
The Finance Ministry assumes a minor increase in real wages this year also thanks to lower inflation rate and higher wages in the health care sector. Real wages should grow 0.6 percent. Employment and consumption of households are expected to stagnate. The inflation should stand at 2.8 percent this year, according to the prognosis.
“The Financial Policy Institute continues to not see recession as the most likely scenario for this year. Substantial uncertainty in external environment naturally lingers. According to the institute risks in its latest prognosis have already been balanced unlike in previous prognoses when negative risks prevailed,” informed the Finance Ministry.
The Finance Ministry has not yet calculated the shortfall in public finances that the predicted deceleration in the economic growth could cause. The impact however should be mild. N additional measures above the state budget framework are thus considered for this year, says the prognosis. The 2012 state budget counts on the general government deficit at 4.6 percent of GDP.
SITA
