Slovakia maintaining 3 percent growth, says Finance Minister

Despite its open economy, Slovakia is managing to maintain GDP growth of 3 percent, with the potential arrival of new car manufacturer Jaguar Land Rover - expected in 2016 - likely to contribute to its further acceleration, said Finance Minister Peter Kažimír at a session of the parliamentary finance and budget committee on Tuesday. According to Kažimír, the public deficit could drop even below 2 percent of GDP. "Despite us having the character of a very open and external shock sensitive economy, we're managing to maintain 3-percent growth even in the face of the situation that prevails abroad", said Kažimír. The minister pointed out that the Government-sponsored state budget proposal doesn't take into account the potential arrival of Jaguar Land Rover in Slovakia, which would further rev up economic growth. The coming of the new investor would boost growth by 0.5 percent of GDP, according to estimates. "I'm talking theoretically and perceive this as a positive risk", he said. The public deficit is projected to decrease to 1.93 percent of GDP in 2016, with the public debt also expected to see a year-on-year drop. "The development of the cash deficit is recording the best figures since 2008, and this development is here to stay", said Kažimír, adding that the debt is likely to go below 49 percent of GDP in 2018. Kažimír claimed that the developments seen on the labour market represent the most positive surprise of the year that have also had a positive effect on state incomes. "This is a very pleasant surprise. We perceive it as a reward for a type of economic policy that has a pro-growth character and the fruits of decisions we made two years ago", said Kažimír, adding that positive developments in this sphere are expected to continue next year. The finance minister conceded that the current budget proposal bears the marks of an "election budget". "To a significant degree, this budget will be carried out by the government that will arise from the next parliamentary election. A lot will depend on how the newly formed government embraces these goals", he said.