Share Price Search
LSE.co.uk
HomeShare PricesShare ChatFinance NewsSharecast NewsRegulatory NewsShares BookshopPersonal FinanceMembers
Latest Share Chat
Finance & Stock Market News
Slovak PM sees 2009 fiscal gap around 6 pct GDP
Sat, 4th Jul 2009 18:00
BRATISLAVA, July 4 (Reuters) - Slovakia's public finance deficit will be around 6 percent of gross domestic product this year, three times as much as originally planned due to shrinking budget revenues, Prime Minister Robert Fico said on Saturday.
Slovakia, a euro zone member since January, has had to abandon a target to keep the fiscal gap below 2.1 percent of GDP because of the economic downturn. The government later aimed to keep the gap at the European Union limit of 3 percent.
But latest forecasts showed a deeper output fall and a more severe tax income shortfall, pushing the government to concede Slovakia will join many other EU member states in breaching the deficit cap.
'(The deficit) will be somewhere around six percent, at least that's what the forecasts say,' Fico said in a debate on the public Slovak Radio.
Fico added that the government intended to cut the shortfall next year, while analysts said they did not expect a major deficit reduction because of the general election in 2010.
A Reuters survey showed on June 30 analysts forecast the overall public finance deficit to rise to 5.5 percent of GDP this year, before dropping to 5.3 percent next year.
Slovakia has been slowing from one of the highest growth rates in the EU -- GDP rose by 10.4 percent in 2007 and by 6.4 percent last year -- as the 70 billion euro economy has suffered from weak export demand for its car and electronics goods.
Household consumption has also crumbled and unemployment rose to a more than three-year high in May, requiring higher government spending.
The latest finance ministry forecast on June 17 sees the economy falling by real 6.2 percent this year, more than the central bank's prediction of a 4.2 percent contraction.
(Reporting by Martin Santa, writing by Peter Laca) Keywords: FINANCIAL SLOVAKIA/DEFICIT
(peter.laca@thomsonreuters.com; +421 2 5341 8402; Reuters Messaging: peter.laca.reuters.com@reuters.net)
COPYRIGHT
Copyright Thomson Reuters 2009. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Slovakia, a euro zone member since January, has had to abandon a target to keep the fiscal gap below 2.1 percent of GDP because of the economic downturn. The government later aimed to keep the gap at the European Union limit of 3 percent.
But latest forecasts showed a deeper output fall and a more severe tax income shortfall, pushing the government to concede Slovakia will join many other EU member states in breaching the deficit cap.
'(The deficit) will be somewhere around six percent, at least that's what the forecasts say,' Fico said in a debate on the public Slovak Radio.
Fico added that the government intended to cut the shortfall next year, while analysts said they did not expect a major deficit reduction because of the general election in 2010.
A Reuters survey showed on June 30 analysts forecast the overall public finance deficit to rise to 5.5 percent of GDP this year, before dropping to 5.3 percent next year.
Slovakia has been slowing from one of the highest growth rates in the EU -- GDP rose by 10.4 percent in 2007 and by 6.4 percent last year -- as the 70 billion euro economy has suffered from weak export demand for its car and electronics goods.
Household consumption has also crumbled and unemployment rose to a more than three-year high in May, requiring higher government spending.
The latest finance ministry forecast on June 17 sees the economy falling by real 6.2 percent this year, more than the central bank's prediction of a 4.2 percent contraction.
(Reporting by Martin Santa, writing by Peter Laca) Keywords: FINANCIAL SLOVAKIA/DEFICIT
(peter.laca@thomsonreuters.com; +421 2 5341 8402; Reuters Messaging: peter.laca.reuters.com@reuters.net)
COPYRIGHT
Copyright Thomson Reuters 2009. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Member Services
Completely FREE with online Share Chat!
FREE Portfolio and Personalised Watchlist
Completely FREE with online Share Chat!
FREE Portfolio and Personalised Watchlist
