Slovakia is experiencing economic growth after a long and hard struggle due to the global financial crisis. The current economic recovery is seeing average house prices fall only 1.36 percent as observed in the third quarter of 2010. There has been a 15.8 percent decrease in house prices from the time of the housing peak.
Slovakia saw significant housing growth from 2006 to 2008, with increases ranging from 14 percent to 35 percent annually. Since the end of 2008, and the global financial crisis, prices have continually been dropping. Last year, in 2010, Slovakia began to see the economy grow stronger largely due to renewed export demand and the economy grew by 3.8 percent.
Apartment prices during Slovakia’s property boom increased about 87 percent between 2005 and 2008, but have since decreased since the onset of the global financial crisis. Last year saw a little improvement in apartments, but villas and flats are still struggling.
Interest rates have been decreasing gradually throughout 2010 and as of November, the average mortgage loan rate was 4.68 percent for a floating or fixed rate and 4.64 percent for a fixed rate.
Slovakia’s economy struggled during the financial crisis and saw it’s GDP drop to a 4.66 in 2009. Unemployment was significantly high last year, in 2010, at a rate of 14.1 percent.
Last year a new free-market government promised Slovakia good news economically. The Ministry of Finance anticipates that the deficit will be cut to 4 percent this year and to below 3 percent by 2011. According to experts, Slovakia’s future looks promising as the International Monetary Fund reports that the economy expanded by 4.1 percent in 2010.
No comments:
Post a Comment