Slovak GDP growth forecast scaled down

Slovakia's GDP will increase more slowly than expected, the central bank (NBS) reported on Tuesday. According to the new forecast, the increase in GDP will be 3.3 percent year-on-year in 2019, down by 0.2 percentage points (p.p.) as compared to the preceding medium-term forecast. In addition to this deceleration in 2019, the central bank governor expects GDP growth to slow down by 0.2 p.p. in 2020 as well. In 2021 a GDP growth of 2.8 percent is expected. Although Slovakia's figures for the previous period are positive, he said, risks outside Slovakia have increased - including Brexit, which should have been resolved in March, and a climate of growing animosity in global trade. The development of the labour market, on the other hand, has been positive so far, with Slovak employment expected to increase by 1.2 percent this year, 0.6 percent next year and 0.5 percent in 2021. Nominal salaries should go up by 6.7 percent this year, 6.1 percent next year and 5.5 percent in 2021, with real salaries increasing by 4 percent this year, 3.5 percent next year and 3.2 percent in 2021. Inflation is expected to oscillate around 2.5 percent for the next three years.