EU spring prognosis optimistic about Slovakia

Slovakia will have a healthy and growing economy in the upcoming two years, indicates the European Commission in its latest economic forecast released on Thursday. Slovakia should see a GDP growth at 3 percent this year, which means the fifth best ranking in the eurozone and the ninth position in the whole EU. Country's prospects for 2018 are even better with the GDP growth forecast at 3.6 percent, along with Ireland, which means the third fastest GDP growth in the eurozone and the fourth fastest growing economy of the EU. The EC's spring forecast is favourable for Slovakia also in terms of investment influx. Overall investment spending in Slovakia is expected to grow by 0.9 percent this year and the growth pace should accelerate to as much as 5.8 percent next year. More positive news for Slovakia is that the Commission expects its unemployment rate to have a downward tendency. Conversely, inflation has an upward trend in Slovakia. Following last year's negative inflation at -0.5 percent, this year it should stand at 1.4 percent (below the eurozone average of 1.6 percent) and at 1.6 percent next year (above the eurozone average of 1.3 percent). The EC expects Slovakia to improve its position also in terms of indebtedness. Slovakia's gross government debt amounted to 51.9 percent of GDP in 2016, while it should be 51.5 percent of GDP this year and 49.8 percent of GDP in 2018, which makes Slovakia the fifth less indebted eurozone country and the tenth less indebted EU country.