Finland Times

 

The growth of Slovakia's economy in 2015 could be jeopardized by the developments in the eurozone, as well as the ongoing conflict between Russia and Ukraine and oil prices, expect several Slovak economists.

     

"While it's possible that uncertainty will continue to prevail with respect to the developments in Russia and Ukraine, we can't forget to take into consideration current developments in the eurozone itself. The situation in Greece remains unresolved, we haven't seen enough reforms in Italy, or in France," stressed Tatra Banka analyst Boris Fojtik.

   

 As anticipated by the approved 2015 public administration budget, Slovakia's GDP should grow by 2.6 percent. According to the analysts approached, this will be facilitated mainly thanks to domestic demand. "This is driven by the improving situation on the labour market, along with the growth in employment and higher household earnings," pointed out Maria Valachyova of Slovenska Sporitelna bank.

     

VUB bank chief economist Zdenko Stefanides added, that the growth of Slovakia's economy will also depend on the development in oil prices. "On one hand, the drop in oil prices by almost half since the summer represents an unexpected support for the growth of the Slovak economy, which is reliant on the import of oil and gas; but, on the other hand, such an oil shock represents a risk for the financial stability of countries that depend on oil exports," concluded Stefanides.