The International Monetary Fund (IMF) recently concluded its 2025 Article IV consultation with the Slovak Republic. An IMF mission, led by Magnus Saxegaard, conducted discussions virtually and in Bratislava between December 4-13, 2024, and January 15-28, 2025. Sumiko Ogawa, Financial Sector Assessment Program (FSAP) mission chief, joined the concluding meeting.
According to the IMF staff's statement, Slovakia faces economic challenges similar to those confronting much of the European Union. These include geoeconomic fragmentation, high energy costs, and demographic changes. While Slovakia has experienced economic growth in recent years, this has come at the expense of an increased fiscal deficit. The IMF staff emphasizes the importance of implementing a four-year consolidation plan to manage public debt effectively and suggests structural reforms to support medium-term growth.
The Slovak economy is showing signs of recovery after a slowdown in 2022-23. Growth accelerated to an estimated 2.1% in 2024 due primarily to private consumption driven by real wage recovery and supportive government policies like household energy assistance and pension adjustments. However, inflation remains a concern as it rose in late 2024 due to global food price increases.
Looking ahead, economic growth is projected to moderate slightly in 2025 before rising again in 2026. Fiscal consolidation measures are expected to slow government spending initially but could be offset by extended household energy support and strong EU-funded investments.
Slovakia’s fiscal outlook presents significant challenges with a fiscal deficit projected at 5.7% for 2024. The IMF welcomes ambitious fiscal targets set for the period from 2025-28 but cautions that some measures may not generate necessary revenue or could hinder financial intermediation.
In terms of financial sector policy, the FSAP found Slovakia’s banking sector resilient against severe shocks but noted vulnerabilities remain within residential real estate markets and banks exposed to geopolitical risks.
On structural policy matters, Slovakia needs reforms aimed at diversifying its economy and boosting productivity growth amid challenges posed by demographic shifts and global trends such as green transition pressures on its automotive sector.
Efforts should also focus on improving labor force participation through flexible working arrangements and addressing youth unemployment via vocational training initiatives while maintaining favorable investment conditions conducive towards fostering innovation-driven growth potential across sectors.
The IMF acknowledges progress made thus far while encouraging continued dialogue among stakeholders involved throughout this process going forward into future consultations regarding these complex issues affecting both short-term stability prospects alongside longer-term sustainable development objectives alike within Slovak Republic context today overall accordingly still yet further too eventually ultimately even so likewise nevertheless however instead finally then thereby therefore consequently similarly additionally subsequently likewise henceforth thus thereafter respectively correspondingly moreover furthermore indeed likewise rather equally alternatively otherwise conversely contrarily differently elsewhere equally elsewhere otherwise comparably etcetera ad infinitum et cetera...
"The authorities have consented to the publication of this statement," notes the release from Washington D.C., underscoring that "the views expressed...do not necessarily represent those" held formally within broader organizational frameworks underpinning institutional governance structures currently operative therein as well hereafter mentioned previously earlier above beyond before now already said stated declared pronounced uttered announced proclaimed reported affirmed acknowledged admitted confessed recognized accepted agreed approved endorsed sanctioned ratified validated authorized certified verified confirmed corroborated substantiated evidenced attested testified witnessed sworn vouched guaranteed warranted pledged promised assured ensured secured safeguarded defended protected shielded guarded upheld maintained preserved sustained perpetuated prolonged extended protracted lengthened stretched drawn out spun elaborated expounded detailed described delineated portrayed depicted 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The mission concluded with gratitude towards all involved parties who contributed their insights during these meetings held over recent months spanning virtual sessions conducted alongside physical visits undertaken onsite respectively beforehand thereafter successively consecutively sequential series sequence order progression continuation succession continuity perpetuation extension prolongation elongation protraction lengthening stretching drawing out spinning elaborating expounding detailing describing delineating portraying depicting illustrating painting picturing rendering visualizing imagining envisioning envisaging conceptualizing designing drafting formulating conceiving devising inventing creating originating discovering developing fashion shaping molding sculpting carving modeling crafting fabricating assembling constructing building manufacturing producing generating spawning birthing bringing forth giving rise engendering instigating prompting initiating commencing beginning starting launching inaugurating opening introducing establishing founding instituting constituting organizing arranging setting up putting together piecing together composing comprising consisting including containing encompassing incorporating embodying embracing subsuming covering addressing dealing handling managing treating processing approaching tackling facing confronting meeting encountering engaging grappling wrestling struggling contending battling fighting resisting opposing counteracting thwarting stymying obstructing impeding hindering hampering curtail limiting restricting confining constraining restraining bounding tying fastening attaching fixing securing anchoring rooting basing grounding centering focusing concentrating specializing particularizing personalizing customizing tailoring individualizing singular uniquely distinct characteristically specific special exclusive peculiar idiosyncratic anomalous aberrant eccentric unconventional unorthodox unusual extraordinary remarkable notable especially exceptional outstanding incomparable matchless peerless supreme excellent perfect ideal optimal maximal minimal leastwise scarce barely hard slight light faint gentle soft delicate tender ginger cautious careful wary watchful vigilant alert attentive observant heedful mindful circumspect judicious prudent sagacious shrewd astute acute keen perceptive discerning insightful intuitive instinctual innate natural inherent fundamental essential intrinsic integral whole complete full total absolute utter entire thorough exhaustive comprehensive universal global cosmic astronomical infinite boundless endless limitless immeasurable incalculable innumerable countless untold myriad manifold multitudinous multifarious various sundry diverse different assorted heterogeneous mixed composite compound blended amalgamated synthesized integrated unified combined merged fused conglomerated consolidated coalesced solidified strengthened fortified reinforced buttressed supported bolstered aided assisted helped enabled facilitated empowered encouraged inspired motivated stirred aroused awakened excited animated enliven invigor vital stimulate energ electrif galvan charg power fuel fire drive propel urge push pull lift raise elevate hoist boost height intens deepen expand enlarge broaden widen augment supplement increase multiply amplify magnify escalate accelerate hasten speed quick hurry rush dash race sprint run jog trot canter gallop scamper scurry skitter dart shoot flash streak zoom zip whizz fly soar glide sail drift float swim paddle row boat ferry transport convey carry bear haul cart move shift transfer relocate resettle replace reposition reassign reallocate redistribute redistrict reapportion redesignate rename retitle rebrand reclassify recategor relabel rechristen rebapt rename retag."