OECD Lowers Growth Forecast for Slovak Economy

Paris, 3 June (TASR) - The Organisation for Economic Cooperation and Development (OECD) has lowered its growth forecasts for the Slovak economy for this year and next, TASR has reported based on an OECD report. The OECD expects Slovakia's gross domestic product to grow by 0.7 percent this year and by 1.6 percent in 2027. As recently as December 2025 it projected growth of 1.1 percent and 1.8 percent, respectively. "The global energy price shock and weak automotive production have constrained trade and consumption. The absorption of EU funds will continue to support investment in 2026, but heightened economic uncertainty will dampen capital formation going forward. Persistently higher energy prices, the future fiscal consolidation mix and lower-than-expected growth in Europe, especially in the automotive sector, represent clear downside risks to the outlook," the OECD stated in its latest report on Slovakia, which is part of its report on the global economic outlook. According to the OECD, in order to ensure that the required fiscal adjustment path is achieved, it is key to keep shifting its composition from increasing revenues to restraints on spending. "Improving the efficiency of public spending, including by strengthening project preparation and implementation capacity, can improve the use of EU funds. Better targeting of energy subsidies would ease the significant burden on the budget, remove distortions and encourage energy-efficiency efforts. Cutting red tape while strengthening the rule of law would boost growth prospects over the longer term," reads the report. According to the OECD, economic measures aimed at reviving growth should focus on strengthening the innovation ecosystem, supporting the business environment and investing in new technologies and knowledge capital. It's also crucial to "improve the quality and relevance of education systems", such as by enhancing measures to retrain low-skilled individuals and those at risk of losing their jobs. am/df