Slovak Republic: Euro a target
Economic growth is projected to ease to 7% by 2009 as the rate at which new export-oriented manufacturing capacity coming on stream declines. Unemployment is projected to fall to about 9.5% in 2009. Further disinflation will be slowed by higher food prices, increases in indirect taxes and the assumed euro changeover in 2009.
Labour market reforms should continue to help bring the long-term unemployed back into work and make entry into the labour force more attractive to young women and older workers. This would help spread the gains from strong growth more widely. Fiscal policy should continue to remain tight to ensure that Slovakia meets the Maastricht criteria on European economic and monetary union and to counteract the danger of a boom-bust cycle after the likely euro area accession.
No. 264/265, December 2007-January 2008
• OECD Economic Outlook No. 82, December 2007
• Visit www.oecd.org/slovakia
• All OECD Observer articles on the Slovak Republic