Weak trade prospects prompt cut to Slovak 2017 growth forecast

BRATISLAVA: Slovakia's Finance Ministry cut its outlook for the country's 2017 gross domestic product (GDP) growth to 3.3 percent from 3.5 percent.

The new forecast would match 2016.

In an update of its economic forecasts released on Monday, the ministry said weaker global trade would slow down imports by key trade partners. Slovakia's economy is mostly driven by exports of cars and electronics.

This year's growth will be fuelled by highway construction, the building of a Jaguar Land Rover plant expected to come online in 2018, and other car plants ramping up production.

Unemployment should fall to 8.4 percent this year and could drop further in 2018, when the ministry estimates the economy to grow by 4.0 percent, and accelerate to 4.4 percent in 2019.

The ministry also raised its inflation outlook for 2017 to 1.1 percent from 0.9 percent on higher oil prices.