READ full country note (PDF)
Strong economic growth is set to continue, reaching 3.8% in 2018. An improving labour market will underpin household spending. Investment is expected to recover, as a slowdown in projects financed by EU funds in 2016 will be compensated by other new public infrastructure spending and stronger business investment. Exports will continue to benefit from the expansion in the automotive sector, which is ramping up production.
The euro area monetary policy stance remains supportive, but a more ambitious structural reform programme is needed to share prosperity widely across society. In particular, measures to improve efficiency in health care and education services are important to enhance well-being and make growth more inclusive and sustainable.
Strong fiscal revenues driven by the improving cyclical position and better tax collection will provide tailwinds for the government's plan to reduce the deficit, as population ageing presents a serious medium-term challenge. Nevertheless, improving public-sector efficiency and changing the composition of spending can provide fiscal space to finance extra growth-enhancing measures in areas such as education and R&D. Additional support can come from rebalancing the tax mix away from direct taxes and social security contributions towards property and environmentally related taxes.
Economic Survey of the Slovak Republic (survey page)