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The second wave of the pandemic will mitigate the output growth to 3.3 per cent this year. The impact is milder when compared to the first wave, affecting mainly household consumption, while exports will continue to support the economy. The labour market will remain stable, adding new jobs in the second half of the year. With the pandemic easing off, the economy will grow by a strong 6.3 per cent in 2022, owing also to the EU´s Recovery and Resilience Plan. The last-minute drawing of EU funds will boost output in 2023. Negative risks include a stricter lockdown and logistical issues concerning the vaccination process. In contrast, generous stimulus packages in the US and the EU could spur Slovak export.
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