IMF lowers outlook for Slovakias 2013 GDP growth to 2.8%.

By bne IntelliNews October 10, 2012
Slovakias economy is expected to expand by 2.8% next year, the International Monetary Fund (IMF) said in the October edition of its World Economic Outlook (WEO), revising downward its projection from an earlier expected growth of 3.1%. The global lender revised up its outlook for the countrys 2012 GDP growth to 2.6% from 2.4%. The Central European country remains an outperformer in the eurozone, where the economy is expected to shrink 0.4% this year and to recover slightly to a 0.2% growth in 2013. The Slovak export-oriented economy is driven mainly by the increased production and exports of cars, while the rest of the economy has been stagnating or even shrinking. The country's finance ministry cut last month its 2013 economic growth outlook to 2.1% from 2.6% expected in June due to a projected decline in foreign demand and the effect of budget consolidation measures. The central bank also slashed its 2013 GDP growth forecast to 2% from 3.1%. The IMF reduced its inflation forecast for Slovakia for 2012 to 3.6% from previously expected 3.8%, and kept its 2013 inflation outlook unchanged at 2.3%. The consumer price inflation, however, will stay above the average inflation in the eurozone, which is projected at 2.3% and 1.6% for 2012 and 2013, respectively. The IMF revised also its forecast for the countrys current account balance to a surplus of 0.8% of GDP for 2012 and 0.3% in 2013 from a previously expected deficit of 0.4% in both 2012 and 2013. The labour market will remain tense as the unemployment rate is seen rising to 13.7% in 2012 from 13.4% last year and fall slightly to 13.5% in 2013, above the average for the euro area of 11.2% for 2012 and 11.5% for 2013. The April unemployment forecast was nearly the same, pointing at a jobless rate of 13.8% for 2012 and 13.6% for 2013. The IMF lowered its forecast for the global economic growth from 3.5% to 3.3% for this year and from 4% to 3.6% for next year, saying that the global economy has deteriorated further since its previous report with global growth slowing again in the second quarter of 2012 after rebounding in the first. The European economy is still plagued by financial stress in the euro area periphery, which has ratcheted up, the IMF said. The recession in most of the periphery is increasingly spilling into other economies in the region, it added.

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

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss