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Foreign trade improved the outlook of the Slovak economy

MF SR raised its estimate of the GDP growth for 2012 to 2.5% due to higher growth in the first quarter and moderate improvement of the external environment. However, the structure of the economic growth will have little impact on tax revenues, as the growth will be driven mainly by the foreign trade. The labor market and the households’ consumption should recover only gradually. The forecast for the next year includes the consolidation measures necessary to achieve the public finance deficit below 3% of GDP. Even then the GDP in 2013 should grow by 2.6%. The uncertainty surrounding the debt crisis in the euro area increased the negative risks of the forecast.

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