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IMF Expects 3% Growth in Slovakia

Strong domestic demand in Slovakia is helping the country’s growth prospects according to the International Monetary Fund in its latest assessment of the economy. 

The IMF made a prediction that economic growth in the country will be 3.2% this year, accelerating to 3.5% over the next two years.

Slovakia’s finance minister, Peter Kazimir stated that the impact of large investments from companies such as Jaguar Land Rover has already been included in the statistics.

The IMF acknowledged the strong banking sector and the small public debt as positives in Slovakia, but pointed to the external risks of a downturn in the European Union or China as potentially having a large affect on the small and open economy.

The IMF recommended the government continue improvements to the education system and to reduce the tax burden on people with low incomes. It also pointed to the country’s problem with long term unemployment, and recommended the government look at policies to make the labour market more flexible.

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