Slovak industry posts double-digit growth

Photo: Pho­to: EPA Slo­va­kia's gov­ern­ment has no plans for leav­ing the euro­zone, PM Ive­ta Rad­i­co­va said in Decem­ber in response to the state­ment of Par­lia­ment Chair Rich­ard Sul­ik.

Slo­va­kia's econ­o­my kept pick­ing up in Novem­ber last year. The coun­try's indus­try out­put grew by 17.3%, and exports by 20.6% on an annu­al basis.

Slo­va­kia's econ­o­my kept pick­ing up in Novem­ber last year. The coun­try's indus­try out­put grew by 17.3%, and exports by 20.6% on an annu­al basis. The eco­nom­ic growth was driv­en by a 30.3% increase in car pro­duc­tion vol­umes in auto­mo­tive plants of com­pa­nies such as Ger­ma­ny's Volk­swag­en, France's Peu­ge­ot-Cit­ro­en and South Kore­a's Kia, which are emerg­ing from the glob­al eco­nom­ic down­turn. Machine build­ing reports the strong­est growth - as much as 37.9% on an annu­al basis. The elec­tron­ics sec­tor also posts growth by some 29%, accord­ing to data pub­lished recent­ly by the coun­try's Nation­al Sta­tis­tics Office. Slo­vak banks did not incur con­sid­er­a­ble loss­es dur­ing the glob­al finan­cial cri­sis, but the nation's econ­o­my, depend­ent on exports and auto­mo­tive indus­try, was hit by the weak demand.
The cen­ter-right gov­ern­ment of Slo­va­kia's first female Prime Min­is­ter, Ive­ta Rad­i­co­va, made con­sid­er­a­ble efforts to sta­bil­ize the econ­o­my. The nation's 2011 Budg­et approved by the Par­lia­ment pro­vides for reduc­ing the pub­lic def­i­cit to 4.9% of GDP from 7.8% in 2010 and growth of 3.3% of GDP. It also fore­sees spend­ing cuts and tax hikes aim­ing to boost rev­e­nues by extra €1.7bn. Infla­tion is set at 3.5%, and unem­ploy­ment at 13.6%.
How­e­ver, the coun­try's Cen­tral Bank warned that the meas­ures will slow down Slo­va­kia's eco­nom­ic growth to 3% in 2011 from 4.2% last year. Besides high­er VAT, the gov­ern­ment is plan­ning to raise excise duties on alco­hol and tobac­co and to cut sal­a­ries of min­is­ters and MPs by at least 10%.

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