Core Views
* Prime Minister Robert Fico will continue to benefit from his party's outright majority in parliament, which has eased the policy formation and implementation process. While this is positive for political stability in the short term, it does not provide much space for consensus politics, with Fico's tax and welfare reforms likely to keep investors cautious.
* Fico's failed bid for the presidency in March 2014 is a sign of growing voter wariness of single-party rule and mainstream political parties, with general elections in 2016 unlikely to give the ruling party another outright parliamentary majority.
* Although Slovakia has been released from the European Commission's Excessive Deficit Procedure, the government will have to maintain a relatively tight fiscal stance in light of rising public debt loads and looming constitutional debt brakes.
* The short-term economic outlook has brightened as export growth led growth of the previous years is beginning to translate to a visible pick-up in domestic demand.
* The current account will remain in surplus over the medium term, even as economic growth becomes increasingly weighted towards domestic demand.
Full Report Details at
- http://www.fastmr.com/prod/853993_slovakia_business_forecast_report_q4_2014.aspx?afid=304
Major Forecast Changes
* We now believe that Slovakia's current account surplus peaked at 2.1% of GDP in 2013, and will narrow gradually in the coming years as stronger domestic demand boosts import growth. We forecast a current account surplus of 1.7% and 1.5% in 2014 and 2015 respectively, from 1.8% and 2.2% previously.
Risks To Outlook
* The risks to our short-term growth forecast are well balanced, and largely based on ongoing uncertainty over the regional economy. With exports in 2013 representing approximately 105.3% of GDP, Slovakia's economy is vulnerable to any shifts in external demand.
* The emphasis on one-off and revenue-boosting measures to achieve significant fiscal consolidation in previous years leaves the deficit reduction programme vulnerable to weaker-than-expected growth while...
The Slovakia Business Forecast Report helps businesses with market assessment, strategic planning and decision making to promote growth and profitability in Slovakia and is an essential tool for CEOs, Chairmen, Finance Directors/CFOs, Managing Directors, Marketing/Sales Directors with commercial interests in this emerging market.
An influential new analysis of Slovakia's economic, political and financial prospects through end-2017, just published by award-winning forecasters, Business Monitor International (BMI).
Key Uses
* Forecast the pace and stability of Slovakia's economic and industry growth through end-2017.
* Identify and evaluate adverse political and economic trends, to facilitate risk mitigation.
* Assess the critical shortcomings of the business environment that pose hidden barriers and costs to corporate profitability.
About Fast Market Research
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For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
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"Slovakia Business Forecast Report Q4 2014" now available at Fast Market Research
Company: Fast Market Research, Inc.
Contact Name: Bill Thompson
Contact Email: press@fastmr.com
Contact Phone: 1-413-485-7001
Contact Name: Bill Thompson
Contact Email: press@fastmr.com
Contact Phone: 1-413-485-7001