EBRD raises Slovakia 2012 economic growth forecast to 2.2%.

By bne IntelliNews May 21, 2012
The European Bank for Reconstruction and Development (EBRD) raised its 2012 economic growth outlook for Slovakia to 2.2% in the latest edition of its Regional Economic Prospects, from 1.3% projected in January 2012. The bank said that Slovakias GDP growth, which reached 3.3% in 2011, should accelerate to 2.6% next year. Slovakia is highly exposed to the slowing industrial cycle in the core eurozone with the concentration of cyclical industries, such as cars, the EBRD said. The Slovak economy is driven mainly by the manufacturing and exports of cars and electronics, with Germanys Volkswagen, Frances PSA Peugeot Citroen and South Koreas Kia Motors running car assembling plants in the country. Following the change in government an ambitious fiscal consolidation is being implemented which will further detract from growth this year, the EBRD said. The bank raised its 2012 growth forecasts for the central Europe and the Baltic states region to 1.6% from 1.4%, with Croatia, Slovenia and Hungary seen slipping into recession, as local factors exacerbate the impact of the eurozone crisis.

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