Likelihood of a recession in euro zone this year is small
Analysts with Slovak banks agree with Mario Draghi, European Central Bank president, that the likelihood of a recession in euro zone this year is small. Economic growth in Western Europe is slowing and the German economy is forecast to grow only 1%, due to Brexit and slower growth in China. The data on orders are still strong, but economic sentiment is deteriorating. The slowdown is already evident in Slovakia—the Bratislava plant of Volkswagen will reduce its workforce by hundreds this year, and Kia Motors is laying off 30 people in Žilina. The Slovak economy is set to grow by 3-4% this year.