Subject
The government's latest GDP expectations for 2016-19.
Significance
On September 19, days before surviving a parliamentary no-confidence vote, the government announced GDP projections for 2016-19, based on improvements in consumption growth and the labour market, where registered unemployment hovers at historically low levels. Despite its weakened position following the recent departure of junior coalition partner Siet, Smer-Social Democracy (SD) is upbeat about the prospects for robust GDP growth in 2016, revising its forecast upwards to 3.6% from 3.2%.
Impacts
Industrial output, GDP and inflationary pressures may pick up post-2018, as consumers spend more and auto industry investments create jobs.
The government may miss its targets in the short term, but fiscal deficits should remain below the EU limit of 3% of GDP in 2016-18.
More public-private partnerships, modelled on the Bratislava ring-road, plus EU funding, may support infrastructure investment after 2017.