Slovakia’s public debt could surpass the debt brake level of 55 percent of GDP, and in 2015 it could reach 57 percent of GDP according to a survey carried out by the Club of Economic Analysts (KEA) among its members and selected economists. The club surveyed 14 respondents.
Economic analysts in the survey estimate that there is an 89-percent chance on average that Slovakia will overstep its debt ceiling of 55% of GDP in 2014. Analysts stated that among the reasons for exceeding the limit are the government’s unwillingness to take unpopular measures, but also the threat of automatic reduction of the VAT rate in the case that the deficit drops below 3 percent of GDP.
Gavin Shoebridge
