During the second quarter of the year Slovakia’s national economy grew by 9.6% supported by both domestic and foreign demand.
MF forecasts were revised downwards to expect an annual growth of 3.7% in 2021 (compared to the previous forecast of 4.6%). The revision was mainly attributed to more moderate economic recovery during the third wave of pandemic and shortage of raw materials further slowing down the growth. MF expects overall decline in household consumption, whilst Industrial sector, on the other hand, is forecasted to stay resilient. Next year’s economic growth (4.2% forecast for 2022) is expected to be led mainly by EU Recovery Plan investments, corporate investments and revived household spending.
In Q2 2021 unemployment level decreased to 7.8% with the average monthly wage at € 1,202. Labour market is expected to keep improving in future Inflation rate reached 3.8% in August 2021 pushed by economic recovery, high energy prices and lack of raw materials. Increases in prices are expected to persist in the coming months, with the indicator peaking at 5 at the beginning of 2022.
