Central Bank: Slovak economy to grow by 3.3 percent this year

Slovakia's economy is projected to grow by 3.3 percent this year before decelerating to 3.1 percent next year and increasing moderately to 3.2 percent of the GDP in 2017, according to the latest mid-term forecast by the Slovak Central Bank. "The growth of the Slovak economy in the third quarter turned out to be mildly higher than previously envisaged, which has resulted in an increase in the GDP projection for this year. EU funds in particular are above expectations. Slovakia has attained one of the highest levels of drawing EU funds this year," said the Central Bank's governor Jozef Makuch. The growth is expected to be propelled mainly by increased domestic demand, investments and public administration consumption in particular. The expected arrival of a new car maker to Slovakia - Jaguar Land Rover - is expected to have a positive effect on GDP. The arrival of a car maker initially benefits construction, with car production only to follow later. Real wages are foreseen to rise by some 3 percent this year and by 2.9 percent in 2016. The unemployment rate is expected to continue to shrink - to 11.5 percent this year, before slowing further down to 10.4 percent next year and to 9.5 percent in 2017.