Slovak GDP expected to surge by 4.1% this Year

Slovakia's GDP growth will reach 4.1 percent this year and accelerate further to 4.5 percent in 2019 thanks to automotive sector exports, before slowing down to 3.9 percent in 2020, according to the latest macroeconomic prognosis published by the Finance Ministry's Financial Policy Institute (IFP) and presented by Finance Minister Peter Kažimír (Smer-SD) on Thursday. Household consumption, which was the main driving force in the past, will be replaced by revived exports as well as investments. Growth in exports has been accelerating thanks to the automotive industry, with the launch of new production at Volkswagen (VW) already reflected. "Rapid growth in investments was largely driven by Jaguar Land Rover's (JLR) investment as well as an acceleration in public investments, chiefly by local governments," stated IFP. Demand for labour should bring 47,000 new jobs and rapid growth in salaries, but also increased inflation.