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 |
Currency | Koruna |
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 |
2006 | 2007 | 2008 |
---|
GDP growth | 8.2 | 8.0 | 5.7 |
Consumer price index | 4.5 | 2.8 | 2.2 |
Unemployment rate (%) | 13.5 | 12.2 | 11.7 |
General government financial balance (% GDP) | -3.7 | -2.7 | -2.2 |
Current account balance (% GDP) | -6.4 | -3.9 | -3.3 |
Source: OECD©
OECD Observer No. 258/259, December 2006
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