Slovakia to Remain Strong in 2018

The solid growth that Slovakia has been experiencing over the past three years should continue in 2018–and even gear up a bit–close to 4% in real terms and possibly even more in 2019 when the Jaguar Land Rover plant in the Nitra region will start producing at full capacity, Spectator reported. Cyclically, Slovakia is narrowing the slack in the economy, with the labor market entering a full employment scenario. This will result in growing pressure on wage costs and bringing in foreign labor. For investors looking at the longer term horizon, a growing shortfall of skilled domestic workers and other adverse demographic trends will indeed be the major structural issues to cope with in Slovakia. The Slovak economy has done well in the first half of 2017: real GDP grew by 3.2%, much like in the preceding year and seems on paper to post a full-year growth of 3.4%. Slovakia’s positive achievements though are no exception in the region. The Czech Republic, Hungary and Poland all look likely to deliver full-year growth of 4%, while the Romanian economy nears 6% growth.