As inflation eases, households will take a breather this year (April 2024)

The Slovak economy strengthened in 2023 thanks to the use of EU funds. GDP grew by 1.1 per cent, while other V3 economies lagged behind. GDP growth will reach 2 per cent in 2024, supported by receding inflation and a recovery in domestic demand. Strong real wage growth will lead to an increase in household consumption, which will drive the recovery. The absorption of EU funds will be partly offset by stronger implementation of Recovery and Resilience Plan projects. Foreign trade will rebound and the sentiment in the global economy will slowly improve, boosting domestic exports. A stable labour market will be hampered by labour shortages. However, the risks to the forecast are mainly on the downside, as persisting geopolitical tensions may destabilise energy and food prices.