GDP to fall by 6.4% in 2009

THE FINANCE ministry expects that the year-on-year fall of Slovakia's economy will be at 6.4 percent in 2009, ministry State Secretary Frantisek Palko said on Monday.

The long-awaited new estimation of Slovakia's GDP development followed from the session of the committee for macroeconomic prognoses at the ministry on Monday. Next Monday the committee for tax and contribution prognoses will hold its session, and it will be clear on the basis of the discussion within the committee what the expected significant drop in Slovakia's economy will mean for the state's tax and contribution revenues.

"We suppose that GDP would decrease by 6.4 percent this year, which, of course, will also affect further figures of macroeconomic environment, including tax and contribution revenues. After the prognoses in the area of tax and contribution revenues are completed, we will propose particular changes in parameters of the budget for 2009," Palko said.