Slovakia's Economic Success Acknowledged by the International Monetary Fund Mission

Last update: 17.05.2019 15:25

The mission of the International Monetary Fund visited Slovakia from 6 to 16 May and met the representatives of the Government, the NBS, and both the private and the third sector. In the concluding statement, the IMF acknowledged the successful economic model of Slovakia and the solid integration into international supplier chains. The growth of productivity in the economy during the past two decades has brought wages of the Slovaks closer to the EU average wages. Strong growth of the employment rate has also reduced unemployment rates to the lowest levels in history and led to the increase in wages both in the private and public sectors. 

The IMF expects the economy to grow at the level of 3.5% in 2019. Strong growth is particularly driven by export capacities in the automotive industry and the household consumption. Compared to the previous years, the growth rate is expected to slow down in the context of persisting foreign risks and cooling felt at the turn of 2018 and 2019. 

Minister of Finance of the Slovak Republic Ladislav Kamenický emphasised after meeting the IMF mission: "The IMF acknowledged the improvement of our budget position in recent years. Better tax collection reduced the deficit of public administration to 0.7% of GDP and the public debt to 49% of GDP in 2018. The debt has thus dropped under the sanction zones of the debt brake." The IMF expects the deficit to reach 0.3% of GDP in 2019. The IMF mission has also appreciated the proposal to introduce multi-annual binding spending caps and emphasised the need to implement savings identified by spending reviews, which also applies to the healthcare spending review. 

In the area of structural policy, the IMF appreciated several measures of the Government. The emphasis in the area of education was laid on the compensation policy of teachers and their career development. Dual education system received more support, too. The expansion of the capacity of affordable childcare facilities will help women to return back to work. 

The IMF's concluding statement is available here:
https://www.imf.org/en/News/Articles/2019/05/17/Slovak-Republic-Staff-Concluding-Statement-of-the-2019-Article-IV-Mission

Press Department
Ministry of Finance of the SR