Slovak economy to shrink by 0.9% in 2009

Slovakia's economy is heading for a contraction of 0.9 percent this year, claims Irish market-research consultancy Research and Markets, whose economic forecast for the country in 2009 is still considerably more upbeat than that of the Slovak central bank (NBS).

“We don't believe that Slovakia will avoid a recession and predict that the country's gross domestic product will fall by a real 0.9 percent in 2009,” Research and Markets says in its report on the Slovak banking sector in the first quarter of 2009.

The latest NBS forecast published two weeks ago forecast that Slovakia’s GDP would shrink by 2.4 percent in 2009. According to the Irish company, a reduction in foreign demand and falling consumer confidence will have a major impact on exports and household consumption. Research and Markets expects the Slovak economy to recover next year, with GDP growth of 2 percent.