Slovak economy to continue pace of growth in 2017

The state will collect more income from self-employed individuals and businesses this year than in 2016, Slovak Trade and Industry Chamber (SOPK) Chairperson Peter Mihók said at a conference in Bratislava on Tuesday. Slovakia is in a good situation in terms of macroeconomics heading into 2017, said Mihók. The expected growth of 3.6 percent of GDP in 2016, along with the unemployment level of around 9 percent and the deficit below 2 percent of GDP, augur well for the Slovak economy in 2017. It's well-positioned to keep up the pace, he said. "The measures that the Government and Parliament adopted in 2016 and that have taken effect in 2017 are both positive and negative for the business sector. The state will receive more money from the business sector this year than last year. There are two negative measures for each positive measure," said Mihók. The policies seen as favourable by SOPK include a reduction in corporate income tax from 22 to 21 percent and changes to lump-sum allowances for the self-employed. On the flip side, the negative measures are exemplified by an increase in levies for regulated sectors, by changes to the assessment bases for social and health-care levies, and by the introduction of a 7-percent tax on dividends. Mihók pointed out that the EU's prospects at the beginning of 2017 are somewhat dimmer, as high growth rates are a thing of the past. "Against this unfavourable backdrop, Slovakia's economy will, nevertheless, grow further, benefiting not only from exports, but also increasing domestic consumption. It is likely to remain among the fastest-growing economies not only in the Eurozone, but across the EU," he added.