Domestic consumption to fuel Slovakia's growth in 2015 and 2016

Slovakia's economy will grow by 3 percent this year and by 3.4 percent next year, driven by higher domestic demand and a gradual fall in unemployment. This is the conclusion of the spring forecast released by the European Commission on Tuesday. The joblessness rate is to drop from last year's 13.2 percent (the sixth worst in the EU) to 12.1 percent this year and all the way down to 10.8 percent in 2016. Due to a slow demand from Slovakia's main trading partners, exports fell last year, with a reversal not expected to be seen until 2016. Imports, on the other hand, grew more than expected, which was on the back of an increase in investment flows and private consumption. The European Commission was not pleased with the evolution of the public deficit. Better tax collection, a freeze on public expenditure and a lower rate of co-funding of EU projects were not enough to make up for low dividend income, lower capital revenues and higher expenses towards health care.