NBS Worsens GDP Growth Prognosis for This Year to 1.2 Percent

Bratislava, June 24 (TASR) - Slovakia's central bank (NBS) has worsened its forecast for economic growth in Slovakia by almost half compared to the spring prediction, NBS governor Peter Kazimir told a news conference on Tuesday. In line with the latest NBS prognosis, Slovakia's GDP should grow by 1.2 percent this year. Inflation should reach some 4 percent. "We're revising our forecast for economic growth down by almost half, as we estimate the GDP growth to be only slightly over 1 percent this year. If you remember, our original forecast was about 2 percent. If you remember even further back, last year we talked about a possible GDP growth of 3 percent in 2025," said Kazimir. The worsening of GDP outlook mainly results from the incorporation of higher tariffs in global trade into the current forecast. In the spring, it still wasn't clear how the situation with the threats of the United States to introduce tariffs would develop and how the affected countries would react, explained NBS experts. The current geopolitical situation should also have a negative impact. The Slovak economy is also being weakened by the necessary consolidation of public finances. "There's a very challenging period ahead of both the Slovak and European economies. The situation is becoming even more complicated as the negative effects are already being felt on the labour market. For many years, the labour market has been resistant to shocks," stressed Kazimir. According to him, companies will do worse, which will be reflected in fewer jobs and less willingness to invest in future development. ko/mcs