BRATISLAVA, Sept. 30 (Xinhua) -- Slovakia's economy is expected to grow by 0.8 percent in 2026 and accelerate to 1.8 percent in 2027, according to the latest macroeconomic forecast released Tuesday by the Slovak Finance Ministry.
The ministry said the economy was poised to see a modest improvement despite continued external pressure, including trade tensions, the energy crisis, U.S. tariffs and declining competitiveness across the European Union.
A recovery in household consumption and exports is expected to support growth, with the gradual expansion of production at the Volvo car plant in Slovakia set to provide a significant boost.
Inflation is also projected to ease, with the annual rate dropping from 3.7 percent this year to 2.9 percent in 2027. The ministry said the continuation of an energy assistance scheme for households would also help curb price growth.
Real household incomes are expected to improve as well. Average nominal wages are forecast to rise by 4.5 percent this year, while real wages, adjusted for inflation, are expected to increase by 1.4 percent next year.
The ministry noted that the Organization for Economic Cooperation and Development had lowered its forecast for eurozone growth in 2027 from 1.2 percent to 1 percent. Slovakia is therefore expected to outpace the eurozone average, with growth in France and Germany projected at 0.7 percent and 1.1 percent, respectively.
The Finance Ministry's Financial Policy Institute assessed risks to the forecast as broadly balanced. Persistently high energy prices could weigh on economic activity and strain public finances, while uncertainties related to military conflicts and trade barriers could delay the recovery in exports and weaken economic growth. ■
