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The End of a Golden Era (September 2019)

The Slovak economy is projected to lose steam to 2.4 per cent in 2019, owing to the cooldown taking place in the euro area. The lacklustre growth projected for the Slovak main trading partners will adversely weigh on the labour market, and will slow down household consumption. In 2020, growth will further moderate to 2.3 per cent, while the unemployment rate will remain flat and wage growth will level off. 'No-deal' Brexit, as well as a marked slowdown in the euro area and the V3 economies pose the main downside risks to the current forecast.