Domestic GDP grew by 2.7% year-on-year in the first quarter of this year. This is one of the highest growths within the Eurozone, while inflation also decreased and reached the required level of circa 2%. However, in recent days there have been negative fluctuations in the world markets, which could represent the beginning of a possible recession. This could subsequently negatively affect our economy, warned analyst Tomáš Boháček. Among other things, there has been a collapse in cryptocurrencies and major economic entities are reducing their technology portfolios and starting to accumulate cash, says Boháček. These events in world markets could force central banks to loosen monetary policies. The interest rates of the European Central Bank could therefore fall faster, which could paradoxically stimulate the Slovak industry and real estate sector.
Despite the negative trends in the global economy, the expert assumes that it might have consequences on our market by the end of 2024. Boháček says that “from an overall perspective, it may be true that the current problems will help us with what has troubled us the most so far, namely high interest and debt costs.”
Source: TASR
