Slovakia’s GDP growth will be 4.2% in 2018 before further accelerating to 4.7% in 2019, the Slovak Central Bank (NBS) said in a forecast released on March 28.

By 2020, GDP growth should slow, but will remain at the elevated growth rate of about 4%. In the previous report, the NBS forecast slightly higher growth this year of 4.3% for 2018.

“Compared to the previous forecast, there were only slight adjustments related to the lower prices of oil and food, and to stronger foreign demand,” NBS governor Jozef Makuch told a press conference on March 27.

The change in an outlook was due to a postponement of the carmaker Jaguar Land Rover’s new production in Slovakia. Also, the lower price of commodities, especially oil, influenced the prediction.

“The changes in the Labour Code related to the introduction of the 13th and 14th salaries, as well as to the hikes in bonuses for working at night, during weekends and holidays, have also been reflected in the latest prediction,” added Makuch.

“We can still say that the conditions for economic growth are very good, the foreign environment has been improving as well, and the investments are helping boost the economy’s growth potential,” NBS vice-governor Ludovit Odor said.

Consumer prices shouldn’t cause any surprises, according to the NBS. In 2018, inflation should reach 2.3% and in 2019 2.2%. Labour market should also witness a positive development with employment growth reaching 1.8% in 2018 and 1.2% in 2019.

“There is a relatively strong demand on the labour market, but supply is lagging,” Ódor said, and added that “even though the labour market has been affected by some limits, the employment rate is still growing.”

The NBS also elaborated on the current political situation, which should have no negative repercussion on the economic growth, which was also reflected by the rating agencies.

"The economic foundations are healthy and, therefore, no change in ratings or anything of that sort is expected. Furthermore, there is nothing to suggest that we will have to work anything of this sort into the prognosis. It's the kind of development that has no pronounced effect on the economy and its foundations," Makuch declared at a press conference.

The newly appointed Slovak government headed by Peter Pellegrini (Smer-SD) won a confidence vote on March 26. 81 deputies of the Slovak parliament voted for its programme manifesto and thus supported the cabinet.

“We will act in such a way that honest people will have a good life here and those who commit criminal offences will be punished,” said Pellegrini before voting.

To win the support of the street will be one crucial thing for the new government, as the latest demonstration on Friday, March 23 showed.