Slovakia is returning to the economic growth OECD



“Slovakia is returning to the economic growth at relatively healthy levels,“ said economist of the Organization for Economic Co-operation and Development (OECD) Pier Carlo Padoan in the meeting with the Prime Minister Robert Fico. OECD, just like the European Commission, envisions Slovakia in 2010 among the countries with the highest economic growth in the EU.


Slovakia, just like many other countries, was hit last year by the global economic crisis, but nowadays according to Mr. Pier Carlo Padoan, Slovakia is able to come out with a quite fast growth at European standards.“ It is the opportunity to come to terms with the issues of fiscal consolidation which is an issue in Slovakia as well as in other countries. We are confident that this country can come out of the crisis in a healthy position,” said OECD economist Mr. Padoan.


According to the Minister of Finance Mr. Jan Pociatek, OECD is optimistic about the situation in Slovakia. We are getting out of the crisis; this year Slovakia is supposed to be the country with the highest economic growth in the European Union (EU) and positive is also the stabilization of the unemployment rate levels. “OECD sees Slovakia as one of the countries that are the fastest ones in coming out of the crisis and it confirms its very good perspectives for the growth in this year and in the future,” Mr. Pociatek stressed after the meeting. At the same time he repeated, that OECD evaluates the Slovak plan of the fiscal consolidation as credible and sufficient. “Understandably there are general appeals on the fact that the consolidation should progress faster and that Slovakia will have to consider this as well, but generally our position compared to the other countries is much better,” stressed the minister of finance.


There was a discussion on several proposals focused on upgrading the management of public finances as:introduction of expense ceilings, budgeting for several years ahead or possible introduction of public debt limit. Nevertheless there were no cardinal reservations concerning Slovakia. “Now it is important how the consolidation process will look like in the coming years in Slovakia and the same will also be a challenge for all the other countries,” added Mr. Pociatek.


Last year the Slovak public finances slumped under the influence of the economic downturn into the deficit of 6.8% of GPD, for this year is planned slimming of the deficit into 5.5%. Slovakia should reach the 3% required by the European rules in 2012.