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Investment-intense growth to be upstaged by exports next year (September 2018)

The Slovak economy is projected to accelerate to 4.1% this year, fuelled mainly by investment in the automotive industry and in the public sector. The economy is expected to add 47 thousand jobs, as labour market grows tighter and exerts upward pressure on wages and prices. In 2019 the economy will gather speed further, owing to exports in the automotive industry, easing to its long-term potential thereafter. The anticipated public sector wage growth will prop up nominal household consumption, and along with dynamic private sector wage growth will favourably impact the tax macro bases over the medium-term.