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On the back of foreign factors, the Slovak economy continues to grow at a slower pace. The growth is set to reach 2.2 per cent this year, compared to 2.3 per cent in 2019. The cool off is limited to the export-oriented industry, while the labour market continues to resist. Unemployment rate will land close to its historical lows; wages will follow the productivity growth. The recovery in the coming years will gain momentum with the completion of the third EU fund programming period in 2023. Trade disputes, the longer-lasting weak performance of the euro area, hard Brexit and spillovers from manufacturing to labour market pose a risk to the economic development.
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