The Slovak economy is estimated to record a 6.7% slump this year, according to the latest macro-prognosis unveiled at a press conference on Tuesday by Finance Minister Eduard Heger (OLaNO). The original estimates, dated from June, expected a more pronounced decrease of 9.8%.
According to Heger, it was not only domestic but also foreign demand that exceeded expectations, indicating that even partner countries to which Slovakia's open economy is linked have weathered the pandemic above and beyond predictions.
Heger also noted that the labour market has proven more resilient than expected and that the aid provided, for instance in the form of kurzarbeit, has helped to maintain employment. The growth in average wages, however, is unlikely to reach pre-crisis levels.
The latest prognosis establishes that gradual economic growth is bound to continue in 2021, with GDP expected to swell by 5.5 percent. If, however, the second wave of the outbreak were to lead to more restrictive measures being imposed on Slovakia's trading partners, the Slovak economy could plummet by 8.4 percent this year, in which case the economic revival next year would be slower - likely at 4.4 percent.
The Finance Minister also underlined the role that the EU recovery plan could play in Slovakia, due to its positive influence not only on consumption, but also on private sector investments and the revival of the labour market. "It turns out that the preliminary stimuli bound to kickstart our economy could accelerate growth by up to 4 percent in 2022-23," he said.
Source: TASR
