The Slovak economy will avoid a recession during the energy and inflation crisis, with gross domestic product (GDP) growing by 1.3 percent this year and the deficit rising to 6.3 percent of GDP, mainly due to the large volume of energy compensation. This stems from Slovakia's stability programme for 2023-2026, which was approved by the Government on Wednesday. In the next three years, the next government will have to adopt consolidation measures worth almost 2.8 percent of GDP. "Starting next year, the Slovak economy will see a stronger recovery supported by developments in the eurozone and thus also by the better performance of our exports. Growth in the economy in the next three years, on average above 2 percent, will be slightly dampened by a planned consolidation of public finances," the Finance Ministry stated in the approved document. Investments from the EU's structural funds and the Slovak Recovery and Resilience Plan will help to jump-start a shivering economy. According to the approved materials, the labour market will remain resilient, even though job creation will be moderate. Inflation will drop to 10 percent this year, and real salaries will rise slightly.
Source: TASR
