Slovakia’s economy is expected to grow slowly next year, with growth of around 0.6 percent. National Bank Governor Peter Kažimír says the weak outlook has several reasons. He explained that the economic situation in Germany remains difficult and, given Slovakia’s close ties, this is also affecting the domestic economy. He added that the government’s efforts to reduce the public deficit mean lower public spending.
According to the National Bank, a stronger recovery is expected only in 2027 and 2028, when growth could reach about 2.5 percent. National Bank executive director Michal Horváth said this should be supported by the start of production at a new car plant, although further austerity measures will still be needed.
Economist Martin Hudcovský warned that slow growth will limit wage increases and negatively affect living standards. The labour market is also expected to weaken, with around 20,000 jobs likely to be lost by 2027. At the same time, public finances are set to worsen. The budget deficit could reach 4.5 percent of GDP in 2026, while public debt is expected to rise above 60 percent of GDP.
Source: STVR, TASR
