FinMin: Slovak GDP to increase by 3.3% this year

Slovakia's GDP should grow by 3.3 percent year-on-year in 2017, before accelerating to 4.2 percent next year, according to the latest prognosis from the Finance Ministry, released on Monday. Slovak economic growth in the period analysed by the Finance Ministry is expected to be driven mainly by growing household consumption, which should be the fastest since 2009, as well as private investments. The employment rate is expected to increase by 1.8 percent, with more than 40,000 new jobs due to emerge this year alone. At the same time, inflation is forecast to be at 1.3 percent for this year. "The price increase will be moderated this year by decisions of the energy regulatory authority from earlier this year. A relationship between salary growth and the prices of services and commodities is being restored. Inflation growth will be mitigated by an increase of nominal salaries," said Finance Minister Peter Kažimír (Smer-SD), adding that the economic situation in Russia and China also appears to be improving, so there are no significant elements to disturb investors. As for risks, they concern mostly Brexit and possible developments in the banking sector in Italy.