Summary The forecast was influenced by lower foreign and a continuous weak domestic demand.
BRATISLAVA: Eurozone member Slovakia s central bank on Friday slashed its 2012 economic growth forecast to 2.4 percent from the previous 2.7 percent, and said the country was also set to do worse than expected next year.
"The forecast was influenced by lower foreign and a continuous weak domestic demand, worsening economic sentiment and a negative developement in the labour market," central bank chief Jozef Makuch told journalists.
"We now expect the economy to grow by 2.4 percent this year," added Makuch, who is also a member of the European Central Bank s governing council.
"We now expect the economy to grow by 1.6 percent in 2013 and by 3.5 percent in 2014," he added, cutting the previous 2013 estimate of 2.0 percent growth but maintaining the 2014 prediction. "The 2014 growth will be fuelled by a stronger foreign and domestic demand and improving jobless rate," he underlined.
The European Commission as well as the OECD expects Slovakia s output to expand by 2.6 percent this year, making it the fastest-growing economy in the 17-member eurozone.
Slovakia s export-driven economy is driven by electronics and car factories.
Slovakia has modern auto plants run by Germany s Volkswagen, South Korea s Kia and France s PSA Peugeot Citroen and its economy is heavily dependent on demand in the rest of Europe, notably Germany.
The left-of-centre government led by Prime Minister Robert Fico -- in power since April -- is struggling to cut Slovakia s public finance deficit from this year s estimated 4.6 percent of gross domestic product to below the eurozone s three-percent ceiling by 2013. It has pursued the spending cuts of its centre-right predecessor and opted to raise taxes.
An ex-communist country of 5.4 million people that joined the European Union in 2004 and the eurozone in 2009, Slovakia posted economic growth of 3.3 percent last year after 4.2 percent in 2010.
