Feb 10 • 09:52 UTC 🇸🇰 Slovakia Denník N

Why Slovaks Can Forget Future Prosperity

The economic situation in Slovakia is deteriorating, with rising taxes and inflation, and chronic issues in human and investment capital hindering long-term progress.

The article discusses the bleak economic outlook for Slovakia, highlighting persistent issues such as increasing deficits, rising taxes, and relatively high inflation. While these problems could potentially be addressed in the short term through fiscal measures like cutting public spending and lowering taxes to control inflation, the author stresses that these are only temporary solutions. The employment situation may shift from a surplus of jobs to a lack of available workers as economic conditions evolve.

However, the underlying economic challenges are described as chronic and far more complex. The author identifies two significant issues crippling Slovakia's economy: the chronic atrophy of human capital and investment capital. These problems have been largely overlooked because their adverse effects are not immediately felt. The author warns that even if these issues could be resolved quickly, the country would still face lower economic growth in the future.

The article ultimately contends that Slovakia's leaders need to acknowledge these deep-rooted challenges rather than continuing with practices that worsen the economic climate. Without urgent action to address these fundamental issues affecting both human resources and investment, prosperity may remain an elusive goal for the future of Slovakia's economy.

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