NBS: GDP to Reach 4 percent This Year and 4.8 percent in 2019

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Slovak central bank (Stock photo by TASR)
Bratislava, June 19 (TASR) – Gross domestic product (GDP) should reach 4 percent in 2018, 4.8 percent next year, and fall back to 4 percent in 2020, reads a mid-term forecast of the Slovak central bank (NBS), which was presented by its vice-governor Ludovit Odor.

“Slovakia’s export performance is expected to increase in the coming months, supported by higher foreign demand as well as an expansion of production in the automotive industry. Due to the weaker development in the first quarter, the Slovak economy should reach a growth rate of 4 percent this year. The GDP growth rate should accelerate to 4.8 percent in 2019. Economic performance assumptions remained unchanged at 4 percent for 2020,” said the NBS vice-governor.
According to Odor, the labour market has reflected favourable macroeconomic developments, and the demand for labour has continued to grow strongly. However, it’s expected that employment growth will decelerate. It should increase by 1.8 percent this year, but gradually slow down to close to 1 percent within the forecast period. “It’s anticipated that the source of employment growth should be people from among the unemployed as well as an influx of workers from abroad,” he said.
Odor further said that the unemployment rate in the first quarter of 2018 fell more sharply than expected, and there appears to be room for a further decline to a level of 6 percent in 2020. In spite of this, there’s still a shortage of qualified labour on the labour market, which is also reflected in the gradual overheating of the labour market and in dynamic salary growth.
“Several factors influence price increases, with rising pressure from cost factors, especially oil prices,” pointed out Odor.