Ministry Revises 2012 Economic Growth Projection

According to a revised forecast of the Ministry of Finance, the Slovak economy should slow down, with growth projected at 1.7% for 2012.

The Ministry’s projection, released on Friday 4 November, is almost two percentage points down on the previous forecast, with a loss of EUR 480 million now forecast for budget receipts.

Finance minister Ivan Miklos, not so optimistic now (c) The

The latest downturn is in part due to turmoil on the financial markets, which is hitting the whole eurozone, including Slovakia’s most important trading partner, Germany. The expected drop in foreign demand would therefore mean weaker growth in exports, investments and employment.

The revised forecast of economic growth in 2012 has also affected the projected salary levels for next year, with the Ministry revising its growth estimate regarding average salaries from EUR 840 to EUR 818 next year. This is still an increase of around 3.4% over the EUR 790 figure for this year, while price levels are estimated to increase by 2.6%.

The impact of the economic slide would also increase unemployment to around 13.5% next year, with around 20,000 people expected to lose their jobs in 2012.

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