Bloomberg News

Slovak Economists Predict Slower GDP Growth, Central Bank Says

October 25, 2011

Oct. 25 (Bloomberg) -- Economists at Slovak banks lowered their forecasts for economic growth in 2012 as the euro region’s debt crisis is set to damp demand for exports from the east European nation, the central bank said, citing a survey.

The average forecast for growth next year by economists at seven local banks fell to 1.9 percent from 2.7 percent predicted a month ago, the Narodna Banka Slovenska in the capital Bratislava today said on its website. The economy is seen advancing 3.1 percent this year, compared with a September forecast of 2.9 percent.

The figures compare with the Finance Ministry’s September projections for the economy to expand 3.4 percent in 2012 and 3.3 percent this year. The ministry is scheduled to release a revised estimate next month which will be incorporated into next year’s spending plan.

The expected slowdown in western Europe will hurt the export-oriented Slovak economy, which relies on foreign demand to fuel growth. Slower-than-projected growth threatens meeting the target to reduce the budget gap to 3.8 percent of gross domestic product next year, forcing the administration to make more spending cuts.

--Editors: Douglas Lytle, Alan Crosby

To contact the reporter on this story: Radoslav Tomek in Bratislava at rtomek@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net


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