Slovak economy has already peaked
The growth of the Slovak economy has already peaked and will start to slow down this year, according to the Finance Ministry’s forecast update. The Ministry cut its forecast of this year’s GDP growth to 4.0% from the previous 4.5%. In 2020, GDP growth is forecast to slow further, to 3.7% (3.9% previously). Last year, the economy expanded by an estimated 4.3%. The slowdown mainly comes on the back of weaker growth in Western Europe, our key export market. The growth will still be pulled by strong household consumption and production launch at the new Jaguar Land Rover car plant in Nitra. Despite the slowdown, unemployment will keep falling (to 5.3% in 2022) and nominal wage growth will stay above 6%.
