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Slovak FinMin warns of negative impact on economy from EU sanctions against Russia

04 September 2014 02:32 (UTC +04:00)

Baku-APA. Slovakia will most likely have to revise its economic growth projection, which is currently at 3 percent, due to EU's sanctions against Russia, admitted Slovak Finance Minister Peter Kazimir on Wednesday, APA reports quoting Xinhua.

The country's Statistical Office has reported that Slovakia's economy will grow by 2.4 percent this year.

"The direct effects on Slovakia aren't that grave, they are in millions of euros, but the indirect effects are more serious, as they concern the economic potential of our trade partners," stressed Kazimir.

Kazimir noted that the Slovak economic recorded quite decent figures in the second quarter this year, which was due to a boost in domestic consumption and consumption of households.

The overall situation in Europe was also better, as the continent was already recovering from recession.

"It's normal that we're afraid that we might lose this good trend," added Kazimir.

However, Frantisek Bernadic, head of the Slovak Statistics Office's macroeconomics section, said the prospects for economic growth in Slovakia as well as other countries within the European Union remain untouched so far, despite fears that the current situation in Ukraine could have an influence on their economy.

"Just like in Germany and in surrounding countries, everyone here understands very well what the potential risks emerging from developments in Ukraine are, but prognoses indicating growth remain the same," said Bernadic.