Slovakia is catching up with the West

Higher prices, higher salaries. People did not enjoy the view of price tags last year. We pay more for food, energy, petrol. What awaits us this year?

dog trnava, car, car

Last year, almost three percent inflation Slovakia according to data Eurostat shot third in the Union, the first in a Euroblock. However, the price increase looks somewhat more optimistic compared to growth salaries. They added a little over eight percent year-on-year last year. And even after adjusting for inflation, they added 5.4 percent.

“Average wages grew faster than inflation, so households they are really rich, “says Finlord.cz analyst Boris Tomčiak. He sees this as the economic boom in Slovakia, which is pushing for spending households. This is despite the fact that our economy slowed down more last year as the most pessimistic estimates. And she added just over two percent. Initially, such a growth was expected almost once.

According to the analyst, wages should also outpace price growth this year as well. “Inflationary pressures could ease slightly this year, but we still will to record above-average price growth, “says Tomčiak. People would like that could afford to shop more than last year. And although retailers’ sales are behind last year they fell by four percent year on year, purchases went up in tourism or restaurants. Consumption thus seems to be shifting rather towards experiences. This also suggests that although we still have something catch up, the standard of living in our country is moving more towards the West. Of course, they also burden the differences between individual regions or professions.

“The average wage in the Slovak economy during the first three quarters of 2019 reached the level of 1,064 euros, “says the analyst of company Wood & Company Eva Sadovská. Salaries dragged up higher minimum wage, but also higher bonuses for work at night, on weekends or during the holidays. But not only that – in the case of many companies it also persisted in 2019 the fight for every employee, adds Sadovská.

This is also shown by European hourly wage statistics. Slovak ones in the third quarter of 2019, they grew by almost eight percent year on year. We thus took the sixth place within the countries of the Union. In the first places was Romania and Bulgaria with double-digit growth, followed by Hungary. On the contrary, we are followed by the neighboring Czech Republic and Poland. On average in the Union During this period, the hourly wage increased by 3.1 percent year on year, within eurozone countries added 2.6 percent.

Employment will not fall yet

The growth of salaries this year is also recorded by the lack of quality people on the market work. According to the data of the Labor Office, the rate reached Unemployment rate of 4.92 percent in December last year. And though the slowing economy will also push for job creation, a more significant rise in unemployment is not yet expected. And if so, sooner in economically weaker regions.

According to the analyst, a more significant increase in unemployment so far, according to the analyst UniCredit bank of Ľubomír Koršňák is hindered by relatively higher demands economic growth to a new workforce. “Economic growth has shifted more from growth through labor productivity to growth through employment, ”he says. Aj according to him, the slight growth of the economy has the potential to increase employment. Even here, however, it is true that Slovakia seems to be divided into two worlds – where the west of the country is struggling with a shortage of people and the east with a lack of work.

(Click on the image enlarge, open in a new window) Author: SHUTTERSTOCK, lchovanec

Food, services, housing

According to analyst at Poštová banka, Jana pushed inflation up in our country Glasova in particular the prices of food and services. The development of prices was a sign of this agricultural crops on world stock exchanges, but also fluctuating prices oil. “But a more expensive price increase in our stores is also a consequence internal conditions that pull prices upwards, ”says Glasová. Behind the auctioning of food, the analyst sees an increase in producers’ costs. You had to not just raise the salaries of your people for the growth of the minimum wage or bonuses for work at night or on the weekend. The increase in energy prices did not help either. “Bakeries, but also in supermarkets, were forced to increase costs to their products and, ultimately, to consumers, “ says Glas.

However, rising purchasing power is also pushing up prices. The result is so auctioning of services for which there is a greater demand. Behind everything is a record salary growth last year.

Behind the record inflation, in addition to food, there are also housing costs they jumped five percent last year. “In the case of housing, they went to Slovakia energy prices in particular, by 6.1 percent on average, ”he says Sadovská. An even more significant rise in electricity prices is expected this year, when on average, it jumps by almost nine percent. “The average household at In Slovakia, the annual energy costs could increase this year by 30-60 euros, “says the analyst.

Prices with us added a record

For the whole year, prices grew by 2.8 percent. This was shown by Eurostat data. In December last year, however, they gained up to 3.2 percent year on year. A closer look reveals a different development of inflation in in the more developed countries of the Union and in the new Member States, Glasová. “Many countries, especially in Western Europe, are struggling more slowly inflation, ”he says.

As an example, the analyst cites Germany with rising prices at the level of 1.5 percent, France with 1.6 percent, but also Italy, where prices they jumped by only half a percent. Due to weak price growth in the west According to the analyst, the European Central Bank (ECB) is also fighting low in Europe interest rates and free monetary policy. On the contrary, newer countries are with significantly faster price growth. Those in December 2019 year on year they jumped by up to 4.1 percent in Romania and by four in Hungary percent. As in our country – by 3.2 percent – they added prices in neighboring Czech Republic.

Higher prices, higher salaries. People did not enjoy the view of price tags last year. We pay more for food, energy, petrol. What awaits us this year?

dog trnava, car, car

Last year, almost three percent inflation Slovakia according to data Eurostat shot third in the Union, the first in a Euroblock. However, the price increase looks somewhat more optimistic compared to growth salaries. They added a little over eight percent year-on-year last year. And even after adjusting for inflation, they added 5.4 percent.

“Average wages grew faster than inflation, so households they are really rich, “says Finlord.cz analyst Boris Tomčiak. He sees this as the economic boom in Slovakia, which is pushing for spending households. This is despite the fact that our economy slowed down more last year as the most pessimistic estimates. And she added just over two percent. Initially, such a growth was expected almost once.

According to the analyst, wages should also outpace price growth this year as well. “Inflationary pressures could ease slightly this year, but we still will to record above-average price growth, “says Tomčiak. People would like that could afford to shop more than last year. And although retailers’ sales are behind last year they fell by four percent year on year, purchases went up in tourism or restaurants. Consumption thus seems to be shifting rather towards experiences. This also suggests that although we still have something catch up, the standard of living in our country is moving more towards the West. Of course, they also burden the differences between individual regions or professions.

“The average wage in the Slovak economy during the first three quarters of 2019 reached the level of 1,064 euros, “says the analyst of company Wood & Company Eva Sadovská. Salaries dragged up higher minimum wage, but also higher bonuses for work at night, on weekends or during the holidays. But not only that – in the case of many companies it also persisted in 2019 the fight for every employee, adds Sadovská.

This is also shown by European hourly wage statistics. Slovak ones in the third quarter of 2019, they grew by almost eight percent year on year. We thus took the sixth place within the countries of the Union. In the first places was Romania and Bulgaria with double-digit growth, followed by Hungary. On the contrary, we are followed by the neighboring Czech Republic and Poland. On average in the Union During this period, the hourly wage increased by 3.1 percent year on year, within eurozone countries added 2.6 percent.

Employment will not fall yet

The growth of salaries this year is also recorded by the lack of quality people on the market work. According to the data of the Labor Office, the rate reached Unemployment rate of 4.92 percent in December last year. And though the slowing economy will also push for job creation, a more significant rise in unemployment is not yet expected. And if so, sooner in economically weaker regions.

According to the analyst, a more significant increase in unemployment so far, according to the analyst UniCredit bank of Ľubomír Koršňák is hindered by relatively higher demands economic growth to a new workforce. “Economic growth has shifted more from growth through labor productivity to growth through employment, ”he says. Aj according to him, the slight growth of the economy has the potential to increase employment. Even here, however, it is true that Slovakia seems to be divided into two worlds – where the west of the country is struggling with a shortage of people and the east with a lack of work.

(Click on the image enlarge, open in a new window) Author: SHUTTERSTOCK, lchovanec

Food, services, housing

According to analyst at Poštová banka, Jana pushed inflation up in our country Glasova in particular the prices of food and services. The development of prices was a sign of this agricultural crops on world stock exchanges, but also fluctuating prices oil. “But a more expensive price increase in our stores is also a consequence internal conditions that pull prices upwards, ”says Glasová. Behind the auctioning of food, the analyst sees an increase in producers’ costs. You had to not just raise the salaries of your people for the growth of the minimum wage or bonuses for work at night or on the weekend. The increase in energy prices did not help either. “Bakeries, but also in supermarkets, were forced to increase costs to their products and, ultimately, to consumers, “ says Glas.

However, rising purchasing power is also pushing up prices. The result is so auctioning of services for which there is a greater demand. Behind everything is a record salary growth last year.

Behind the record inflation, in addition to food, there are also housing costs they jumped five percent last year. “In the case of housing, they went to Slovakia energy prices in particular, by 6.1 percent on average, ”he says Sadovská. An even more significant rise in electricity prices is expected this year, when on average, it jumps by almost nine percent. “The average household at In Slovakia, the annual energy costs could increase this year by 30-60 euros, “says the analyst.

Prices with us added a record

For the whole year, prices grew by 2.8 percent. This was shown by Eurostat data. In December last year, however, they gained up to 3.2 percent year on year. A closer look reveals a different development of inflation in in the more developed countries of the Union and in the new Member States, Glasová. “Many countries, especially in Western Europe, are struggling more slowly inflation, ”he says.

As an example, the analyst cites Germany with rising prices at the level of 1.5 percent, France with 1.6 percent, but also Italy, where prices they jumped by only half a percent. Due to weak price growth in the west According to the analyst, the European Central Bank (ECB) is also fighting low in Europe interest rates and free monetary policy. On the contrary, newer countries are with significantly faster price growth. Those in December 2019 year on year they jumped by up to 4.1 percent in Romania and by four in Hungary percent. As in our country – by 3.2 percent – they added prices in neighboring Czech Republic.