Slovakia faces economic stagnation despite rising real wages

Slovak Prime Minister Robert Fico has reported that while real wages in Slovakia are growing because they are outpacing inflation, the country is facing persistent economic growth stagnation. Fico noted that the export-oriented economy remains heavily dependent on the struggling German economy and emphasized the need to secure new investors and utilize European funds.

Regarding energy, Fico expressed frustration over the Jaslovské Bohunice nuclear project, suggesting it is being intentionally “torpedoed.” He plans to visit the site to discuss reactor resilience and the development of new nuclear sources.

Simultaneously, political tensions are rising ahead of the state budget approval. Andrej Danko, leader of the SNS coalition party, has signaled a “hot autumn,” demanding the abolition of the transaction tax, a return to 10% and 20% VAT rates, significant pension increases for the elderly, and new licensing systems for entrepreneurs.

Labor market data shows employment has stagnated, with approximately 2.428 million people employed in the second quarter. Analysts warn that weakened economic growth may lead to a slight decline in employment during the second half of the year.