Slovakia’s economy is enjoying a better recovery than most experts expected. The latest estimates of the Ministry of Finance project GDP growth of 4% this year, quite an improvement on the initial 3.2% forecast from June.
The growth is expected to be driven chiefly by revitalised exports, with the car industry expected to post double-figure growth in their production figures.
“The main reasons behind the current changes are consolidation measures, more optimistic estimates about the external environment and the positive results seen in Slovakia and within the Eurozone in early 2010”, according to a statement by the ministry’s Financial Policy Institute (IFP).
Ministry analysts say economic growth in Slovakia will accelerate thanks to foreign demand and reserves in the 2010-12 period, together with a revival in household consumption after 2012.
On the other hand, the Ministry has dropped next year’s forecast from 3.8% to 3.3%. The risks lie in the development of financial markets and a potential restrictive fiscal policy in the EU in 2011.
Slovakia’s central bank put its estimate at 3.7%, while commercial banks analysts and the International Monetary Fund agree on growth of 4%.