High taxes reduce economic growth

The Finance Ministry and the central bank NBS presented their macroeconomic forecasts, with both institutions predicting GDP growth of 0.8% this year. In the spring, they predicted a growth rate higher by half. Next year, the MF expects a slight acceleration to 1.3%, while the NBS expects a slowdown to 0.5%. While the growth rate will be among the lowest in the EU, inflation will be among the highest. The MF expects 4.1% this year and 4.4% in 2026. The NBS forecasts are 4.2% and 3.6%.

Slow growth and high inflation are driven by tax hikes to finance various social programs. Weak demand in Western European export markets is not helping either. The economy will lose 30,000 jobs in 2026–27.

(openiazoch.sk, tvnoviny.sk)