10% drop in Slovak economy

The Slovak economy will fall by almost 10% this year. Finance Ministry analysts have updated their forecast, according to which the drop in GDP will reach 9.8%. Thus they've worsened their forecast from April of this year by 2.6 percentage points. At the same time, however, they slightly increased their estimate of how strongly the Slovak economy will recover next year. They currently forecast an economic growth of 7.6% in 2021, an increase of the April estimate by 0.8 percentage points. In the coming years, however, economic growth should be significantly more moderate, with estimates of 1.8% in 2022 and 3.5% in 2023. The main negative factor in their projections remains the potential return of the disease, which would deepen the recession. The Finance Ministry's analysts now expect 76,000 jobs to be lost as the result of the pandemic, especially in tourism, catering services, retail and transport.