A significant increase in power in the automotive sector will boost exports.
Bratislava / Paris, November 21 (TASR). The Organization for Economic Cooperation and Development (OECD) predicts that the expansion rates of the Slovak economy will remain high in the next two years. A significant increase in power in the automotive sector will boost exports. Improving the situation on the labor market and the steady growth of investment, due to favorable financial conditions and greater use of EU funds, will contribute to high domestic demand.
In its current forecast, published in the World Economic Outlook, the OECD is counting on a 4.3% increase in Slovakia’s gross domestic product (GDP) in 2019 and a 3.6% increase in 2020. This year, he expects an increase of 4.1% compared with +3.4 last year. A slowdown in expansion in 2020 will be in keeping with the external environment.
Wage increases will accelerate inflation in 2020 to 3% from 2.7% this year and next year. Printing to increase wages will be a shortage of labor. According to the OECD, the unemployment rate this year will drop to 6.7% from 8.1% last year. The decline should continue in the next two years – in 2019 to 6.1% and to 5.5% in 2020.
Government plans for fiscal consolidation meet the requirements of the European Union, the OECD said in a statement providing for a gradual reduction of the government deficit from 0.7% of GDP this year to 0.4% of GDP in 2019 and 0% of GDP in 2020 57% of GDP this year from 58.1% of GDP last year. In 2019, it will fall to 55.1% of GDP and to 53.2% of GDP in 2020.