Slovak economy will avoid recession this year

The Slovak economy will avoid recession this year and expand by 1.3%, according to the Finance Ministry forecast update. Last year's forecast envisaged a 0.6% growth. The improvement is due to state help with energy prices for households and companies, as well as faster absorption of EU funds. Last year, the economy grew by 1.7% despite double-digit inflation, also thanks to a post-pandemic investment boom. Inflation is expected to fall from last year’s 12.8% to 9.8% this year and only 5.3% in 2024. Energy prices are set to fall. EU subsidies, including the Recovery Facility, as well as rising real wages will contribute to GDP growth.

(mfsr.sk)