Slovak economy to see growth of 3.3% in 2021

The Slovak economy is projected to slow down to 3.3 percent in 2021, according to the latest macroeconomic prognosis by the Financial Policy Institute (IFP). Exports and the labour market are expected to remain stable, with the latter estimated to start creating new jobs in the second half of the year. Once the pandemic goes away, the Slovak economy is expected to rise by 6.3 percent in 2022 also by virtue of the EU's coronavirus recovery funds and due to the completion in the drawing of European funds in 2023. The economy is expected to be driven by exports, with household consumption under pressure. The foreign demand has remained stable, fuelled mostly by automobile production. In the wake of the adverse pandemic situation, the sectors hit hardest are those of services and construction. Moreover, the Financial Policy Institute claims the second wave of pandemic is expected to have a less pronounced effect on employment than the first one, with a slight decrease estimated to be recorded in services and construction in early 2021.