Russian invasion in Ukraine is anticipated to have a major impact on the Slovak economy, reducing the economic growth and putting pressures on budgetary expenditures.
In March, the Ministry of Finance has revised its prognosis anticipating economic growth to reach 2.1% in 2022 (down from the original forecast of 3.5%). Projections for 2023 stayed unchanged at 5.3%.
The invasion is expected to result in decreasing exports to Russia, lowering demand in the EU. Rising energy prices will translate into accelerating inflation (anticipated to almost double reaching 8.5% in 2022) which will in turn have a negative impact on household consumption.