Public deficit at 1.04 percent of GDP last year

Last year Slovakia posted its lowest annual public finance deficit ever, reaching a mere 1.04 percent of GDP, which was well below the Finance Ministry's projected goal of 1.29 percent of GDP, stated the Finance Ministry citing Eurostat's spring notification. A better-than-expected collection of levies due to the positive situation on the labour market is the main reason behind this result. Analyst from Slovenská sporiteľňa bank, Katarina Muchová, expects further improvement in the situation involving public finances, with the deficit to be close to 1 percent of GDP in 2018, while the ratio of public debt and GDP should also ameliorate. The state budget projects a deficit at 0.8 percent of GDP in 2018.