2010.07.1909:31:00UTC+00Slovakia Aims To Cut Deficit Below 3% In 2013, FinMin Says

Slovakia plans to cut its budget deficit to below the 3% limit set by the European Commission by end-2013, the country's Finance Minister Ivan Miklos reportedly said.

The International Monetary Fund's 2010 deficit estimate for Slovakia is 8% of GDP. In an interview with the daily SME, published on Monday, Miklos said this estimate is higher than the government's projection of 7% and the previous government's target of 5.5%. The minister said the government wants to save an amount worth 2.5% of gross domestic product next year and thus reducing the deficit to the approved level.

In 2009, Slovakia's budget deficit swelled to 6.77% from just 2.3% recorded in 2008. The European Union rules instruct all members to have a maximum budget deficit of 3% of GDP and debt of 60% of GDP.

Slovakia, an export driven economy that joined Eurozone in 2009, suffered setbacks from falling demand during the height of the financial crisis. The economy expanded 4.8% annually at constant prices in the first quarter. The economy grew for the first time since the last quarter of 2008. The Slovak central bank expects the economy to expand 3.7% in 2010 and then by 4.3% in 2011.

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