Hard Brexit Might Slow Down Slovak Economy

A complete cutting of Britain's relations with the EU - also known as "hard Brexit" - could hit Slovakia's business partners, and that could subsequently cause a slowdown in the Slovak economy, Slovak central bank vice-governor Jan Toth told the international Euromoney conference in Vienna on Thursday. He added that in view of this, the Slovak central bank is likely to include the impact of the UK's planned withdrawal from the EU in its next economic forecast. Slovak central bank's previous prognosis suggested that growth in the Slovak economy would slow down by 0.3 percent of GDP as a result to Britain's departure from the EU. "The impact, however, could be rather closer to 0.5 percent of GDP," said Toth. He further explained that the most significant impact won't be direct, as exports to Britain represent only some 4 percent of Slovakia's trade. The impact will be seen indirectly through a slowdown in growth among Slovakia's trading partners, especially Germany, which exports to Britain to a greater extent. Weaker growth in Germany could be reflected in Slovak exports, stated the Slovak central bank vice-governor.