NBS Expects Slovakia’s GDP to Grow by 5 percent This Year

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NBS Governor Peter Kazimir and Vice-governor Ludovit Odor (photo by TASR)

Bratislava, March 31 (TASR) – The Slovak central bank (NBS) estimates that Slovakia’s GDP should grow by 5 percent this year, NBS Governor Peter Kazimir told a news conference on Wednesday, dedicated to the spring prognosis of the country’s macroeconomic and monetary development.

Meanwhile, the central bank expects Slovakia’s economy to reach the pre-crisis level by the end of this year.

Kazimir noted that uncertainty is currently lower than a year ago and that each new lockdown has a less negative impact on countries’ economies. “Despite the complicated first quarter, we in NBS see the development of Slovakia’s economy quite positively and even very optimistically,” stated the governor. The prognosis expects even faster economic growth next year, with GDP going up by 5.6 percent.

According to Kazimir, the central bank’s optimism results from foreign demand, although there are problems with domestic consumption. “However, we think that people will be willing to spend more here as well when the measures are eased,” said the governor.

Concerning the labour market, Kazimir stated that it remains in a sound condition. “The labour market remains quite resilient,” he said, ascribing this partly to the state’s supportive measures. However, he expects no big revival as early as this year. NBS even expects further drop in employment. Growth in employment will probably resume early next year. “There’s a need to say that growing labour productivity will create room for solid salary growth. We estimate it at 5 percent as early as this year, with the figure being very similar in the upcoming years,” stated Kazimir, adding that the base effect will also have an impact on this, i.e. whether people will work more than in previous years.