💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Slovak 2009 budget deficit may be above target -PM

Published 11/14/2008, 07:42 AM
Updated 11/14/2008, 07:44 AM
TGT
-

BRATISLAVA, Nov 14 (Reuters) - Slovakia may post a slightly higher-than-planned fiscal deficit next year due to the global economic downturn, Prime Minister Robert Fico was quoted on Friday as saying.

The 2009 state budget draft, now in the parliament for final debate and approval, sees an overall fiscal gap equal to 1.7 percent of GDP and assumes 6.5 percent economic growth next year, a forecast made before the financial markets turmoil.

"One of options to cope with the crisis is a slightly higher deficit alongside cuts in expenditure at some ministries," the Web site of daily SME quoted Fico as saying.

Fico said his government would not touch its planned social packages and programmes. He gave no details on the possible deficit growth.

The finance ministry cut its economic growth forecast for next year to 4.6 percent last week.

Fico's government, which came to power after 2006 elections, has said a slowdown would cut 2009 budget revenue by some 10 billion crowns ($417.2 million), adding it was ready to cut costs if necessary.

Slovakia, which will become the 16th member of the euro zone in January, has been largely shielded from the direct impact of the crisis and the EU has singled it out as one of the few economies that will ride out the crisis relatively well.

But the small and open economy, relying heavily on exports of cars and electronics goods, is exposed to a weakening of demand in its main export markets in the West as consumers curtail spending.

Preliminary data showed the Slovak economy grew 7.1 percent in the third quarter, a high pace relative to its neighbours but the weakest number in almost three years, and analysts saw a more significant slowdown next year due to the negative external environment

(Reporting by Martin Santa; editing by David Stamp)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.