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.

Related Articles

Slovakia one of possible locations for new BMW plant.

German car maker BMW considers building a new plant in eastern Europe and Slovakia is one of the potential locations, Hospodarske Noviny business daily reported citing BMW's board member Ian ... more

Slovakia jobless rate edges down to 14.7% in February 2013.

Slovakia's unemployment rate in February 2013 fell for the first time in six months going down to 14.7% from 14.8% in January when it reached its highest level in more than 8.5 years, data from ... more

Frances CCN Group considers new plant in Slovakia - report.

France-based CCN Group, a supplier of components for turbines and automobiles, considers building a new plant in Slovakia in the town of Belusa, Hospodarske Noviny daily reported citing unnamed ... more

Dismiss