Steep wage growth hurts competitiveness of Slovak economy

The current account of the balance of payments (the difference between exports and imports, as well as labor and capital income flows) has swung from a surplus of 0.6% of GDP in 2020 to last year's deficit of 8.1%. In addition to the steep rise in energy prices, the change was also brought about by the loss of competitiveness of Slovak exporters facing higher wages and other costs. Exports have been driving the Slovak economy for decades. The European Commission warns that high inflation and sharp wage growth in Slovakia could lead to a permanent deterioration in the competitiveness of the economy.

(dennikN.sk)