Slovakia aims to loosen consolidation drive to support economic growth

By bne IntelliNews August 15, 2013

The Slovak finance ministry has published a draft budget proposal for 2014-2016, which envisages some loosening from the previously announced consolidation targets with the aim of supporting the sluggish economy, Webnoviny.sk reported. According to the proposal, Slovakia’s budget deficit should reach 2.9% of GDP in 2014, mostly unchanged from this year’s target of 2.94%. The deficit target for next year is still in line with EU’s 3% ceiling, but is above the cabinet’s previous ambition of cutting the shortfall to 2.6% of GDP. The plan envisages also a budget gap of 2.57% of GDP for 2015, up from previously projected 2% of GDP, and a deficit of 1.5% of GDP in 2016, up from previously intended 1.3% of GDP.

Though loosened, the new budget gap targets still need consolidation measures, which the ministry has estimated at more than EUR 700mn for 2014, nearly EUR 1.1bn for 2015 and more than EUR 1.5bn for 2016. Exact measures have not yet been proposed, but the ministry has said that it would target mainly public cost savings.

Slovakia's annual economic growth accelerated to 0.9% in the second quarter of 2013 from a 0.6% yearly rise in the previous three months, but the country’s full-year GDP growth is expected to drop to below 1% this year from 2% in 2012 due to the government’s austerity drive and bleak external demand.

Related Articles

Labour shortage taking on crisis proportions, warns Slovak PM

The growing labour shortage bears the hallmarks of a crisis, Slovak Prime Minister Robert Fico said on April 4. While keen to boast of the health of the economy under his continued watch, Fico was ... more

Penta plans to delist Czech-based betting firm Fortuna

Slovak financial group Penta announced on March 31 that it plans to tender for the remaining shares in Czech-based betting firm Fortuna, and then delist the company. Penta, which holds 68.25% in ... more

UniCredit reportedly in talks to sell Czech/Slovak unit

UniCredit is in talks with two local suitors over the sale of the Italian bank’s Czech/Slovak business, local media reported on March 27. The claim remains only speculation, but if accurate, it ... 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