Slovak Republic: 2009 Article IV Consultation: Staff Report; and Public Information Notice on the Executive Board Discussion
IMF Staff Country Reports, July 28, 2009
Source details
- Canonical URL
- Slovak Republic: 2009 Article IV Consultation: Staff Report; and Public Information Notice on the Executive Board Discussion
Other formats
Bibliographic details
- Published: July 28, 2009
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451835571.002
Summary and context
- Publication date: July 28, 2009
- Main finding: Following a period of rapid growth, economic activity in the Slovak Republic tumbled in the first half of 2009 as a result of the global crisis.
- Financial sector: Slovakia’s banks have so far withstood the global crisis relatively well.
- Executive Directors’ guidance: Authorities were encouraged to formulate and announce a credible medium-term fiscal consolidation strategy aimed at bringing down the general government deficit to within the Maastricht norm in a timely manner.
- Competitiveness emphasis: Directors emphasized that external competitiveness will require sustained structural reforms and wage discipline.
Key findings and analysis
- Economic contraction:
- Rapid pre-crisis growth was followed by a tumble in economic activity in the first half of 2009 due to the global crisis.
- Banking and financial stability:
- Slovakia’s banks have so far withstood the global crisis relatively well.
- Fiscal position and recommendations:
- The report highlights the need for a credible medium-term fiscal consolidation strategy.
- Objective: bring down the general government deficit to within the Maastricht norm in a timely manner.
- Structural and labor policy:
- Sustained structural reforms and wage discipline are emphasized as necessary to preserve or restore external competitiveness.
Policy recommendations (as presented)
- Formulate and announce a credible medium-term fiscal consolidation strategy.
- Aim to reduce the general government deficit to within the Maastricht norm in a timely manner.
- Pursue sustained structural reforms.
- Maintain wage discipline to support external competitiveness.