Tour de France 2022
Tour de France 2022

Inflation in Slovakia to exceed 10% and growth expected to slow

Inflation in Slovakia to exceed 10% and growth expected to slow

Prices in Slovakia are expected to increase by more than 10% this year and at a slightly higher rate next year, according to Slovak central bank governor Peter Kažimír who was speaking at a presentation of the central bank’s new medium-term forecast. He added that the high inflation will be accompanied by a weakening of economic growth, which should fall to 1.4% and 1.9% respectively this year and next. It is gas prices in particular that are having a significant impact on the overall rise in consumer prices. According to Kažimír, we will have to wait until 2024 for a significant drop in inflation. In the mean time real wages will fall as salary increases will not keep up with inflation. These developments in the economy, however, are highly dependent on the development of the war in Ukraine and on the political decisions that are associated with this conflict, according to economists. For example, if Russian gas supplies were to be cut off, inflation could be even higher than the central bank’s current estimates, and the economy could fall into recession.

Jonathan McCormick, Photo: TASR

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