Analyst: Economic recovery on horizon

Analyst: Economic recovery on horizon

A significant recovery of the Slovak economy could start in spring this year, however, the level of uncertainty is very high, stated Katarína Muchová, analyst of the Slovenska Sporiteľňa bank. In spite of all troubles, the job market remains quite robust. "Our estimation of the Gross Domestic Product development in 2020 is -6.2 % and we expect it to grow by 6% this year," said Muchová. The sector most influenced by the pandemic is that of services, however even industry, trade and construction have felt the impact. The current restrictions continue to hit services. According to Muchová, industry should continue in its relatively good development, as it has not been impacted by "European" restrictions, and the stable situation in east Asia is helping foreign demand.

Muchová expects a permanent improvement after the wide application of vaccines, once restrictions are ended. By the end of 2021, the EU Recovery Fund should help to improve the situation, however, we will probably feel its impact from 2022.

Mojmir Prochazka, Photo: TASR