Update on Slovakia economic acceleration

Slovakia’s economy should grow + 1.5 % this year, and +3.5 % in 2011, according tot he expectations of Saxo Bank (Denmark). The Slovak economy will be driven by its close link with the German economy (foreign demand for Slovakia comes mainly from Germany and from other countries of the eurozone such as Austria).

The bank expects that unemployment will stabilize in Slovakia later than in main economic areas. The growth in exports is lagging behind the development in economies fueled by foreign demand. Saxo Bank expects 12.5 % jobless rate in Slovakia in
2010 and sees it at 13.05 % in 2011.

This estimate may be on the low end as there are 9 korean companies about to make big investments in the country.

Saxo Bank's verdict suggests that adoption of tougher fiscal measures will squeeze the estimated general government deficit that the bank forecasts to reach 5.15 % of GDP in 2010 in line with most other european countries. In 2011, the deficit should narrow to 4.95 % of GDP. However, the bank added that the fiscal policy is hardly predicable now a few months to the parliamentary elections due in June. The National Bank of Slovakia however is more optimistic. In its latest prediction the central bank expects Slovakia’s GDP to grow by 3.1 percent.

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