New Delhi :The Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation [1] with Slovak Republic on Wednesday, June 29, 2022, and endorsed the staff appraisal without a meeting.
Growth rebounded to 3.0 percent in 2021, but a stronger recovery was impeded by resurgent infection waves and supply chain disruptions. As a result, the shock of the war in Ukraine is hitting Slovakia before it had fully recovered from the pandemic, with output and employment still slightly below pre-crisis levels as of end 2021.
The war in Ukraine will dampen the recovery given Slovakia’s geographical proximity, heavy reliance on energy imports from Russia, and high integration into global value chains. Growth in 2022 is projected to slow to 2.2 percent, with inflation averaging 10 percent in 2022–23. Growth is expected to rebound to 3.5 percent in 2023, supported by large EU funds inflows. Uncertainty is exceptionally high, with key risks tilted to the downside.
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