Slovakia's newly approved consolidation package will improve long-term economic prospects but temporarily slow growth, particularly in 2026. The country's economy will be most impacted by increased corporate taxes, reducing growth by 0.65 percentage points that year. However, by 2027-the positive effects, such as lower risk premiums on state bonds, will drive faster growth, compensating for the initial losses. The package aims to address Slovakia's high fiscal risks, with public debt potentially reaching 70% of GDP by 2028 without reform. While the immediate fiscal improvements are promising, further measures will be needed in the coming years.
Source: TASR
Patrícia Polakovičová, Photo: TASR
