VET: Slovakia's GDP growth of 2.2% in 2020

17.02.2020 - According to the latest forecast by the Institute of Financial Policy (IFP), the analytical department of the Ministry of Finance, the Slovak economy slows down due to the drop in foreign demand. The cooling of the economy is evident mainly in the export-related industry, while the labor market is still resisting negative trends. With the economic recovery, the savings rate should also increase, which will positively affect private consumption, especially construction, private investment and the labor market. Higher wages will drive household consumption and the economy will start to overheat slightly.

Thanks to unemployment of less than 5%, wages in 2019 have seen the fastest growth since 2008. However, households have remained somewhat cautious in spending, so the extra income has been translated into record savings.

On the employment front, in 2020 more than 5,000 jobs will be created, mainly in the services sector. The moderate economic recovery expected by 2021 will also be reflected in a greater job creation activity. However,  the problem of a difficulty in employment growth due to the scarce availability of manpower still remains, with the unemployment rate that according to VET in 2020 will stabilize around the historical minimum of 5.8%.


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