Analysts say V4 economic growth is on its rise

The V4 member countries; including the Czech Republic, Hungary, Poland and Slovakia are enjoying economic growth at a faster pace than the EU average, Tatra banka analyst Tibor Lörincz told the TASR press agency. As he added, however, there is the threat that this growth will stop at some point. "The highest GDP growth dynamics were recorded with the Polish economy at 4.6%, while it was 4.4% in the Czech Republic and 4% in Hungary," explained the Poštová banka analyst Lucia Dovalová. According to Katarína Muchová from Slovenská sporiteľňa, a slightly more moderate level of GDP growth is expected this year. Despite the economic growth, the V4 belong among the poorer EU countries. According to analyst Tibor Lörincz they might experience a so called the middle income trap. Out of the V4 countries, Slovakia is the only one with the euro as its currency. However, its income growth is the slowest, as analyst Lucia Dovalová pointed out. "The main reason is that in our neighbouring countries the unemployment rate is significantly lower which puts pressure on income growth."