Slovakia’s robust economic growth is expected to continue and the rate of unemployment will continue to fall, according to the Autumn 2016 Economic Forecast released by the European Commission.
“The prognosis for Slovakia is particularly positive,” said Dušan Chrenek, head of the EC Representation in Slovakia, in a press release. “Slovakia will continue in strong economic growth.”
As reported by The Slovak Spectator, the country’s GDP should increase by 3.4% this year. Though the growth will fall to 3.2% in 2017, the following year it should increase by 3.8%.
Economic growth in Slovakia is higher than the European average. While the whole European Union should grow at 1.8% this year, in 2017 it is forecast at 1.6% and in 2018 at 1.8%, while in the eurozone, the economy should grow by 1.7% this year, 1.5% next year and 1.7% in 2018, according to the EC press release.
What is more, the European Commission also predicts Slovakia will continue reducing unemployment, which is expected to fall to 9.7% in 2016, and then down to 8.7% in 2017 and to 7.5% in 2018.
Inflation is also forecast to decline to -0.5% in 2016, the third consecutive year of declining consumer prices.
The general government deficit for 2015 was also revised downwards by 0.3 percentage points to 2.7% of GDP mainly due to higher tax revenues. In 2016, the deficit is projected to decline to 2.2% of GDP.
“This fall is supported by robust corporate income tax receipts reflecting rising profitability, as well as by steady growth in personal income taxes and social contributions due to favourable labour market developments,” the press release reads.
The EC predicts the deficit will continue decreasing to 1.5% of GDP in 2017, and in 2018 the country may nearly achieve a balanced budget.