Ernst & Young improves outlook for Slovakias 2001 GDP growth to 3.4%.

By bne IntelliNews June 21, 2011
Slovakias economy will grow by 3.4% in 2011, consultancy Ernst & Young said in the summer edition of its Eurozone Forecast report revising upward its projection from an earlier expected growth of 3%. Exports, expected to rise by 12.9% y/y in 2011, will be the economys main driving force in 2011. Household consumption will remain weak, inching up by only 0.5% y/y, as it will be negatively affected by the governments consolidation measures. Slovakias GDP is expected to gain momentum in 2012 and 2013, when it is expected to expand by 4.1% y/y and 4. 4% y/y, respectively. The revival of the domestic demand, and private consumption in particular, will be the main factor that would support the faster growth. The unemployment rate will drop by 0.9pps y/y to 13.7% in 2011 supported by employment creation in the industry and will continue to decline in the next years. Inflation will speed up to an average of 3.5% in 2011 reflecting the VAT increase and the higher world commodity and energy prices. These factors will fade in 2012 and the average annual inflation will stand at 2.6%. Ernst &Young expects the countrys budget deficit to fall to 5.3% of the GDP in 2011 from over 8% in 2010 but higher than the governments target for a deficit of 4.6%. In 2013, the gap is seen at 3.4% of GDP, higher than the Maastricht limit of 3%. We remind that the government pledged to reduce the deficit to 2.9% in 2013. Ernst &Young said that downside risks on the forecasts are a slowdown of the euro zone growth, lower than expected investment growth and the rise of commodity prices.
Read in IntelliNews Pro
Get IntelliNews Pro

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

Follow Us On

Most Read

  1. Iran vs Israel: Who is better equipped for war?
    6 days ago
  2. Saudi Arabia to scale back plans for Neom city
    10 days ago
  3. Oil continues to flow to Israel via Turkey despite Erdogan’s vehement speeches on plight of Gaza
    5 months ago
  4. BREAKING: Iraq, Syria and Jordan close airspace amid Iranian strike on Israel
    6 days ago
  5. Russia’s war economy boosted by rising oil prices
    4 days ago
  1. Russia could pay off its entire external debt tomorrow, in cash
    20 days ago
  2. Speculation swirls of “Men in Blue” in Crocus City Hall terrorist attack linked to FSB
    25 days ago
  3. Albanians campaign on social media to keep bus bridge created in freak accident
    1 year ago
  4. UBN: Russia could take the Baltic states in 48 hours
    30 days ago
  5. BRICS announce a blockchain-based payment system to create a common currency
    23 days ago

Reports

Dismiss