Slovakia's Budget Council has revised its economic growth estimate for the year downward, predicting growth below one percent. This revision comes at a critical moment as the country is in the midst of its recovery and resilience plan. Minister Saková and Minister Kamenický are tasked with finding ways to reactivate the economy, indicating the urgency of addressing this economic slowdown.

The council forecasts that 2026 will mark the second consecutive year of growth below one percent, alongside a decline in employment. Zuzana Múčka, head of the macroeconomic analysis and forecasting department, highlighted that Slovakia is unlikely to reach its economic potential by the end of the decade and risks falling further behind neighboring countries. This raises concerns about long-term economic stability and growth potential for the nation.

Key factors contributing to this economic stagnation include a consolidation package with anti-growth measures, such as increased taxation on labor and energy subsidies, and ongoing issues within the automotive sector exacerbated by losses in the U.S. and Chinese markets. As inflation is projected to reach 3.6 percent this year, slightly below last year's levels, the overall economic outlook remains uncertain, further complicating employment trends and the country's fiscal health.