() - Slovakia’s economy is set to sustain the current growth momentum this year supported by exports, an International Monetary Fund report said Tuesday.

Real gross domestic product is expected to grow nearly 3.75 percent this year, after a 4 percent expansion in 2010, the lender said in an Article IV consultation mission concluding statement. Growth is projected to improve to nearly 4.25 percent in 2012-15.

“While growth will still be driven mainly by the export sector, a gradual rebound in domestic demand would provide some boost and broadly offset the withdrawal of fiscal support,” the IMF said. “As spare capacity diminishes and confidence firms, employment and private consumption will start to improve, albeit gradually.”

“Domestically, a renewed decline in real estate prices and a loss of fiscal credibility, if the government fails to achieve the targeted fiscal consolidation, are the main risks,” the lender said.

Inflation is seen rising to 3.5 percent this year on higher oil and food prices and increase in value added tax and excise taxes. Headline inflation is projected to decline to below 3 percent in 2012 and beyond.

The IMF expects Slovakia’s general government deficit to fall to below 5 percent of GDP this year from 7.75 percent last year. The government’s aim is to bring the deficit below 3 percent in 2013 is “credible and appropriate”, the lender added.

Similar Posts:

• QE: welcome but more needs to be done
• U.S. Economy Expands By Upwardly Revised 3.1% In Q4
• Singapore Q2 GDP Falls 7.8% On Quarter
• U.K. Manufacturing Growth At 7-Month Low, Retail Sales Sluggish
• U.S. Consumer Prices Fall In Line With Expectations