Increased Slovak GDP growth forecast

GDP growth in Slovakia should speed up this year, being driven chiefly by private consumption supported by a significant increase in real salaries and further growth of employment, the European Commission (EC) indicated in its latest economic forecast released on Thursday. The Commission expects exports to replace investments as the second pillar of economic growth in 2019. However, exports will decelerate along with the pace of the economy's expansion in 2020. Increase in real salaries and strong private demand will enhance inflation growth. The public finance deficit is expected to go down further. Slovakia's GDP grew by 3.2 percent in 2017, chiefly as a result of domestic demand. The EC in its autumn prognosis forecasts GDP to go up 4 percent this year to slightly accelerate to 4.1 percent in 2019 when the current economic cycle will probably culminate. Meanwhile, GDP growth will drop to 3.5 percent in 2020.