Economic growth in Slovakia is culminating
Economic growth in Slovakia is culminating above 4% in 2018-19 and the growth pace will fall towards 2.5% in 2020, according to analysts. Last year, economic growth was fueled by domestic demand and investment, and this year, their slowdown will be compensated for by the launch of the new Jaguar Land Rover car plant. The slower growth thereafter will be the result of weak external demand, i.e. the EU-US trade war, Brexit and rising interest rates. Over the medium term, Slovakia faces the challenge of transforming its economic model from cheap labor to a knowledge-based economy. It will need smart investments into research and education, where Slovakia has been laggard so far.