Ukraine war hits Slovak economy hardest in EU

The Slovak economy suffered the most out of all EU countries from the Russian invasion of Ukraine, according to a comparison of the February and May macroeconomic forecasts of the European Commission. [Shutterstock/Kichigin]

The Slovak economy suffered the most out of all EU countries from the Russian invasion of Ukraine, according to a comparison of the February and May macroeconomic forecasts of the European Commission.

GDP in Slovakia for 2022 is expected to grow 2.3%, according to the Commission’s forecast released on Thursday (19 May).

However, growth forecasts from February pointed to a 5% growth – which represents the biggest revision in the entire EU. Czechia, Latvia, Estonia and Germany also saw a 2% drop in forecast growth.

“Slovakia’s prospects are overshadowed by the effects of Russia’s military aggression against Ukraine, which causes a strong supply shock,” the Commission has said. “The sharp rise in energy and commodity prices is expected to raise production costs and reduce household purchasing power, which will slow down growth,” it added.

The Commission expects that the EU economy as a whole is likely to grow at a rate of only 2.7% this year, which is 1.3% lower than estimated before the war.

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