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The economy is projected to remain robust, growing 3.3% in 2017 and 4.1% in 2018, led by persistently strong domestic demand. The strengthening labour market and rising incomes will further raise household consumption. Unemployment may fall to near 7½ per cent in 2018, the lowest level since independence. Exporters are projected to continue to gain market share, allowing the current account to reach a modest surplus. Consumer price inflation is expected to rise gradually, as energy prices pick up and the labour market tightens.
The government appropriately intends to reach a balanced budget by 2019 to maintain the soundness of the public finances. In order to finance much needed inclusiveness-friendly reforms, the government should continue to enhance tax collection and improve public sector efficiency.
Large FDI inflows have helped integrate the Slovak Republic into global value chains and boosted exports and productivity, resulting in one of the OECD's fastest growth rates in the past decade. However, the benefits of growth have not been equitably shared. Therefore, there is a need for education, health care and labour market reforms to make growth more inclusive, particularly for the Roma population and the long-term unemployed.
Economic Survey of the Slovak Republic (survey page)