Slovak Central Bank expects faster growth this year

Slovakia's Central Bank expects the growth of the country's economy to accelerate and prices to stay put this year, according to an update to the bank's forecast published on Tuesday. It forecasts economic growth to reach 2.9 percent of GDP this year before speeding up to 3.6 percent of GDP next year. Lower oil prices are expected to benefit Slovakia's main trade partners, which should spur higher demand for Slovak products and services abroad in the next two years. That said domestic - rather than foreign demand will be pivotal for this year's GDP growth. The expected fall in energy prices in 2015 and 2016 also has an impact on the inflation outlook. "Prices should stay put this year, similarly to 2014. This should be followed by a mild acceleration in the inflation rate in 2016, when it should reach 1.4 percent, spurred by a more significant rise in domestic demand and the dying away of a steep fall in oil prices in 2016," according to the bank's forecast.