Slovak Republic: Selected Issues
IMF Staff Country Reports, March 13, 2024
Source details
- Canonical URL
- Slovak Republic: Selected Issues
Other formats
Bibliographic details
- Published: March 13, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400271021.002
Key findings on inflation drivers
- High and volatile inflation in Slovakia in recent years seems to be mainly driven by volatile food prices amplified by the larger consumer price index weight of food items.
- Other drivers include the large impact of imported inflation, elevated profit margins of domestic firms, and higher wage growth.
Impacts on competitiveness, firms, and households
- High inflation could erode external competitiveness through higher unit labor costs, but there is no clear evidence of this so far.
- Firms with the largest cost increases experienced a deterioration in their financial situation.
- Certain categories of households, including those with low-income levels and the elderly, are particularly vulnerable to the rising cost of living.
Projection and downside risks
- The recent fall in inflation is projected to continue.
- Downside risks to this projection include strong unit labor cost growth or an increase in profit margins, either of which could keep inflation elevated and undermine competitiveness.
Publication and metadata
- Pages: 33
- Volume: 2024
- Issue: 076
- Series: Country Report No. 2024/076
- DOI: https://doi.org/10.5089/9798400271021.002
- Stock No: 1SVKEA2024002
- ISBN: 9798400271021
- ISSN: 1934-7685
- Publication date shown on landing page: March 13, 2024
International Monetary Fund. Slovak Republic: Selected Issues.
Content in this bundle
- Slovak Republic: Selected Issues; IMF Country Report No. 24/76; February 21, 2024