WIIW The Vienna Institute for International Economic Studies - Wiener Institut für Internationale Wirtschaftsvergleiche

While Slovakia achieved a successful year 2011 – with a GDP growth of about 3.3% – main challenges lie ahead. Due to the ongoing European debt crisis and worsened outlook for its main trade partners Germany and the Czech Republic, we revised our growth forecasts downwards and expect GDP to grow by 1.5% this year. Net exports might remain the main driver of GDP provided that external demand does not weaken even further. In addition, uncertainties derive from the forthcoming parliamentary elections to be held on 10 March 2012. In case of a government dominated by the leftist Smer party led by Robert Fico, we may expect weaker fiscal consolidation and thus slowly reviving private consumption.