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Recession in the Euro Area impacts the Slovak economy

The annual economic growth should reach 0.5% this year. The rate of economic growth decelerates due to economic slowdown of our most important trading partners and due to lack of domestic demand. The unfavorable situation in Europe will negatively affect exports and the investment activity in Slovakia. Fiscal consolidation and weak labor market will further dampen domestic consumption. Because of the expected recovery of the world economy, we expect a gradual increase in the rate of economic growth in Slovakia by the end of 2013, which will approach 2.2% in 2014. By the end of the forecasted period the economic growth in Slovakia should return to 3%.

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