The Economist has once again published its annual ranking of the best-performing economies in the Organisation for Economic Co-operation and Development (OECD). The list covers 36 countries — including Slovakia, which finished in last place.
As the daily Sme notes, Slovakia did not appear in last year’s edition of the ranking.
This year’s winner is Portugal, which benefitted strongly from a tourism boom. The top ten also includes last year’s leader Spain, Greece, and two of Slovakia’s neighbours, Czechia (6th) and Poland (10th). According to The Economist, the ranking is based on several indicators: the level and change of inflation, GDP growth, employment, and stock-market performance, with countries scored according to their results in each category.
Over the first ten months of the year, Slovakia’s core inflation — which excludes volatile items such as food and energy — stood at 3.2 percent. Countries performed better the closer their core inflation rate was to 2 percent, the target of many central banks. Only Great Britain and Estonia with the core inflation of around 3.5 and 5 percent, respectively, fared worse in this regard.
Slovakia’s overall inflation remains close to 4 percent, above the eurozone average. Price growth has been driven in part by the government’s second consolidation package, which raised Value Added Tax (VAT), introduced a new levy on sugary drinks, and added a controversial tax on financial transactions.
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The country’s GDP is expected to grow by 0.9 percent this year and by 1 percent next year.
By comparison, Czechia’s GDP is forecast to grow by 2.8 percent this year and maintain similar momentum over the next two years. Poland is performing even more strongly, with GDP growth projected at 3 percent this year and 3.5 percent next year — a development Sme notes is the result of long-term economic trends.