BRATISLAVA, Sept 6 Slovakia's economy is likely
to grow faster than the 3.2 percent expected this year, fuelled
by big investments in the automotive sector and highway
construction, the finance ministry's Institute for Financial
Policy (IFP) said on Tuesday.
The euro zone member's economy expanded by 0.9 percent
quarter-on-quarter in the second quarter, accelerating from the
previous three-month period, data showed on Tuesday confirming a
The result was three times higher than that of euro zone as
a whole, confirming the healthy state of the Slovak economy
which has benefited from fiscal control that has kept public
finance deficit within acceptable limits and is expected to
reach a surplus by 2019.
On a year-on-year basis, Slovak output grew by 3.7 percent
in the April-June period, the statistics office said, with the
main drivers being exports and household spending.
The country of 5.4 million is home to three car plants and
is expecting a fourth to come online in 2018 after the
government signed a deal with Jaguar Land Rover (JLR)
last year for a 1.4 billion euro ($1.6 billion)
Construction of the JLR factory, starting next week, and
construction of two highways in the capital Bratislava by
Spanish infrastructure group Ferrovial's Cintra unit
will boost Slovakia's economy this year.
France's car maker Peugeot Citroen and Germany's
Volkswagen have also announced investments in their
Slovak factories and South Korean Kia expects a
record output this year.
Britain's perceived slow progress towards exit from the
European Union following its June "Leave" vote is also seen as
another positive factor for Slovak growth, the IFP said.
The ministry said in July the impact of Brexit would shave
0.1-0.2 percentage points off Slovakia's growth expected to
reach 3.2 percent this year and up to 0.3 percent of an expected
3.7 percent expansion in 2017.
It will present an updated outlook later in September.
(Reporting By Tatiana Jancarikova; Editing by Richard