Slovakia to be among fastest-growing OECD countries in 2019

Slovakia to be among fastest-growing OECD countries in 2019
By nto in Prague February 6, 2019

Slovakia's economy should expand by 4.3% in 2019 and by 3.6% in 2020, according to the latest economic outlook released by the Organisation for Economic Cooperation and Development (OECD on February 5. The OECD is thus more optimistic about the development of the Slovak economy than the Slovak finance ministry.

“Significant new capacity in the automotive sector will boost export performance. Labour market buoyancy and solid investment growth, underpinned by favourable financial conditions and increased disbursements of EU funds, will contribute to strong domestic demand,” commented the report. 

It also anticipated further economic impact of the tightening labour market, a phenomenon seen across the CEE region. “Wage growth will increase and consumer price inflation will reach 3% as the labour market tightens and pressures on production capacity build up,” according to the OECD.

Prime Minister Peter Pellegrini said that the OECD forecast has confirmed that Slovakia is currently experiencing good economic times. “Slovakia’s economic growth is balanced, and should continue to grow at a solid pace in 2019, with Slovakia belonging to the fastest-growing OECD countries,” said the prime minister, New TV TA3 reported.

“Thanks to sustainable economic growth, living conditions in Slovakia are approaching those of higher-income countries. Fiscal results are very good as well, debt levels are well below the OECD average and are still falling thanks to good fiscal policy,” said OECD secretary-general Jose Angel Gurria after his meeting with Pellegrini on February 5, quoted by the Slovak News Agency.

Gurria praised Slovakia for the decrease of the unemployment rate, solid fiscal policy and the healthy financial sector. “To sustain economic progress, the survey recommends that the country invest in skills for the digital era, encourage innovation, diversify the economy and ensure growth is shared by all, including the Roma,” he listed country’s challenges in his post