Slower economic growth and public finance deficit
The Slovak economy’s growth pace will slow down from last year’s 4.1% to this year’s 2.4% and to 2.3% in 2020, according to the latest Finance Ministry prognosis. The cut in forecast reflects slower growth in Germany, our key trading partner, which also impacts Slovakia’s labor market.
Finance Minister Ladislav Kamenický (Smer) claims the slower growth is to blame for missing the target of balanced public finances this year. In fact, the deficit will be caused by underestimated spending and overestimated revenues. He will try to cut spending by ministries by €200m this year.