- The IMF asks Slovakia to adopt pro-growth measures to support the economy.
- According to Kamenický, geopolitical tensions, tariffs and energy prices negatively affect the Slovak economy.
- The minister confirmed that the government is already taking concrete measures.
- The fund recommends debt brake reforms and savings, the government considers them unrealistic.
The current report of the International Monetary Fund (IMF) on the Slovak economy describes the reality we know about. Slovakia needs the government to adopt pro-growth measures, on which work has already begun. He said this in response to a report published by the IMF on Tuesday (January 27). Minister of Finance of the Slovak Republic Ladislav Kamenický (Direction-SD).
According to him, Slovakia is negatively affected by geopolitical tensions, tariffs, trade wars, high energy prices and balancing on the brink of recession of the largest trading partners. “In addition to all this, we have to clean up public finances after the former governments of Matovič, Heger and Ódor. It is difficult, but so far we are making progress. In order for Slovakia to maintain stable public finances, strengthen its growth and respond to external economic headwinds, it will be necessary to adopt pro-growth measures,” emphasized Kamenicky.
“I am glad that we have fully started working in this direction, as evidenced by my business trip last week with the Prime Minister of the Slovak Republic Robert Fico (Smer-SD), during which we held extremely important negotiations with representatives of the Organization for Economic Cooperation and Development (OECD) in Paris,” added the minister.
In connection with the IMF report, the Ministry of Finance (MF) of the Slovak Republic appreciates the correct cooperation in negotiations with the representatives of the fund and takes note of their conclusions. The department pointed out that the IMF appreciated the government’s consolidation efforts and highlighted the stability of institutions, the resilience of the Slovak financial sector and efforts in the fight against tax evasion. “In connection with the consolidation of public finances to date, the evaluation report states that the measures in the budget for this year are adequate and also positively assessed the preliminary result of reducing the deficit for the year 2025.” stated the MoF.
In its report, the Fund also makes recommendations that Slovakia should adopt in order to compensate for the negative effects on the economy. For example, it opens the possibility to address the issue of the debt brake. “Reforming the debt brake before its reactivation in 2026 would help reduce the risk of sharp fiscal consolidation that would further weaken the economy,” the mission concluded.
There are other proposals in the report that, according to the IMF, could reduce future fiscal risks. It is a limitation of 13. pensions, a reduction in social spending, an increase in the rate of value added tax (VAT), or a shortening of maternity leave. “However, such recommendations do not reflect the political reality in Slovakia and do not correspond to the current priorities of the Slovak government,” the Ministry of Finance emphasized.
