Slovak Republic: Export motors
Net exports are projected to rise markedly as production builds up at new automobile plants, pushing economic growth up to around 8% in 2006 and again in 2007. Unemployment is likely to continue to fall, albeit more slowly than in recent years. Headline inflation should decline to 2.25% by 2008.
Further monetary policy tightening may be needed to ensure that inflation targets are met. Greater fiscal consolidation in 2007 would both help to damp inflationary pressures and create a larger safety margin for respecting the Maastricht fiscal criteria. Labour market reforms are needed to bring the long-term unemployed back into employment.
|Population (000s), 2005||5 387|
|Area (000 sq km)||49|
|GDP (Billion USD), 2005||81|
|Life expectancy at birth (Women, Men), 2004||77.8, 70.3|
|Total labour force (000s), 2005||2 646|
|Government type||Parliamentary Democracy|
|Indicators||% change unless otherwise indicated|
|Consumer price index||4.5||2.8||2.2|
|Unemployment rate (%)||13.5||12.2||11.7|
|General government financial balance|
|Current account balance (% GDP)||-6.4||-3.9||-3.3|
No. 258/259, December 2006