Slovak Republic: 2022 Article IV Consultation-Press Release; and Staff Report
IMF Staff Country Reports, June 30, 2022
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- Slovak Republic: 2022 Article IV Consultation-Press Release; and Staff Report
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Bibliographic details
- Published: June 30, 2022
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400214684.002
Economic outlook and shocks
- The war in Ukraine has "clouded the outlook for the Slovak economy" while it was still recovering from the pandemic.
- Effects already observed:
- Surging commodity prices
- Input shortages
- Subdued confidence
- Weaker global demand
- Heightened energy security risks, given Slovakia’s heavy reliance on Russian energy imports
Fiscal policy guidance and priorities
- Fiscal policy needs to be flexible and ready to adjust, while avoiding adding to inflationary pressures.
- Immediate policy priority:
- Mitigate the economic fallout of the war and minimize the humanitarian crisis
- Medium-term priority:
- Rebuild fiscal buffers once the economy is on a solid growth path to create room for maneuver and accommodate rising ageing-related spending
Structural reforms and fiscal sustainability
- Recent reforms identified as able to significantly strengthen public finances:
- Reforms to the fiscal framework
- Reforms to the pension system
- Specific institutional design measures highlighted:
- Multiyear spending ceilings should strengthen fiscal discipline
- The link between retirement age and life expectancy will improve fiscal sustainability
Subject coverage and keywords
- Subject areas: Financial institutions, Fiscal policy, International organization, Labor, Monetary policy, Prices
- Keywords include: climate mitigation goal, Europe, Global, Housing prices, IMF's transparency policy, Inflation, Labor markets, liability positions vis-à-vis nonresident, money market rate, Mortgages, policy priority, Policy recommendation
Content in this bundle
- 1svkea2022001