The domestic economy will grow more than the Finance Ministry projected at the beginning of this year. Stronger output at Slovak companies automatically means higher income tax revenue for the state. The Cabinet is expected to achieve a deficit projected at 3.04% of GDP. According to the Finance Ministry, the Slovak economy will expand by 0.8% instead of the originally forecast 0.5%.
The faster pace by which the Slovak economy should grow is to continue also in the years 2015 and 2016. This situation is caused mainly by positive developments in the Eurozone which are helping maintain and even grow Slovak exports, claims an analysis of the situation prepared by the Ministry’s Institute of Financial Policy. Moreover, domestic demand has been revived. The institute calls it a surprise, as it is the first time it has risen in the past four years. Slovak consumers started trusting the Slovak economy once again and are spending more, added Finance Minister Peter Kažimír. The Minister is calling it good news for Slovakia and the employment rate. However, the predictions say different, as prognosis show unemployment should reach 14.5 percent this year and start falling more significantly in 2015.
