After a slowdown in 2013, Slovakia's economic growth has begun to pick up speed again in 2014, which has been facilitated by revived consumption and investments, the European Commission stated in its latest autumn 2014 prognosis.
Strong domestic demand should contribute towards the growth of real GDP in 2015-16, gradually reducing the unemployment rate. Inflation, for its part, is expected to rise to 0.7 percent in 2015 and 1.4 percent in 2016, after posting a negative figure in 2014 (minus 0.1 percent). In terms of economic growth, after a slowdown of 2013 due to the stagnation of domestic demand and a downturn in exports, Slovakia's economy recorded a recovery in the first half of 2014. In addition, the economy is expected to post further hikes throughout this year, with real GDP growth to stand at 2.4 percent in 2014. Next year will see the figure at 2.5 percent, while 2016 should witness 3.3 percent. Boosted economic activity is linked to favourable developments on the labour market, largely over the past few quarters. The European Commission warned however that Slovakia's exports went down sharply in the second quarter of 2014, mainly due to slower growth in GDP recorded on the part of the country's main business partners. Nevertheless, it seems that the end of 2014 could be more positive with respect to exports, even though the pace of growth is expected to be slower compared with previous years.
