Turbulences in financial markets and the resulting uncertainty worsen the economic outlook of the Eurozone, including Germany, which will inevitably affect the Slovak economy. The German economic growth is expected post a mild recession in 4Q11-1Q12. IFP has therefore again revised its forecast of GDP growth in Slovakia in 2012 downwards to 1.7%. The slowdown is more pronounced this time and will therefore have an impact on the Slovak labor market. This will mean a negative shortfall of 0.9% of GDP for the public finances in 2012.