Slovakia's economy is to report 8.8 percent real growth this year, as current September estimates from the Financial Policy Institute (IFP) at the Slovak Finance Ministry show. The institute thus confirmed its projections from June 2007. In 2007, average inflation rate is to reach 2.4 percent and average harmonized inflation 1.6 percent, according to projections. The current account is to end in deficit of 4 percent of Slovakia's GDP on 21.1 percent y/y real growth of exports of products and services and a 17.2 percent increase in imports.
At the same time, the IFP released its prognoses of economic development for the next three years. It anticipates real economic growth of 6.8 percent in 2008. A year later, growth dynamics should slow to 5.8 percent and in 2010 Slovakia's economy should grow 5 percent. Consumer price growth should slow to 2 percent on average in 2008 and inflation rate growth dynamics are to accelerate to 2.5 percent. 2010 inflation rate growth dynamics are expected at 2.4 percent. Harmonized inflation should gradually speed up to 1.8 percent in 2008 and stand at 2.4 percent in the subsequent two years.
The IFP expects continual reduction of current account deficit in the balance of payments. This is projected at 2.6 percent of the GDP in 2008, 1.9 percent of the GDP in 2009 and 1.4 percent of the GDP in 2010. At the same time, growth dynamics of exports and imports should slow down. Next year, the IFP expects a 12.8 percent increase in exports, which is projected at 8.9 percent in 2008 and 6.8 percent in 2010. Import growth should decline to 11.5 percent in 2008, 8.1 percent in 2009 and 6.1 percent in 2010.
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