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Despite intensifying price pressures, Slovakia's GDP will rise by 1.9 per cent this year. Yet, high energy prices weigh on companies’ costs and will cause an economic slowdown in the second half of the year, not only in Slovakia but also among our business partners. The dynamics of the Slovak economy will thus decline to 0.6 per cent GDP growth in 2023. A double-digit inflation will hit households’ budget right from the next year owing to spike in regulated prices. Real wages will consequently fall accompanied by the slump in households’ savings rate and spending. Economic recovery is expected from 2024 onward.
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