The International Monetary Fund’s Executive Board completed its Article IV consultation for the Slovak Republic and endorsed the broad thrust of staff’s appraisal, focusing on restoring fiscal sustainability while advancing reforms to strengthen resilience and support convergence as growth has slowed and inflation remains elevated. After growth of 1.9% in 2024, output slowed to 0.8% in 2025 as fiscal consolidation and weak confidence restrained consumption and private investment contracted amid uncertainty, partly offset by strong EU-funded public investment and a rebound in net exports. Growth is projected at 0.9% in 2026 and 1.8% in 2027, while headline inflation is expected to stay elevated at 3.4% in 2026 due to the gradual phase-out of energy price subsidies, with core inflation easing; higher energy prices were assessed as a near-term drag on growth and inflation but not a change to the policy advice. Directors viewed the financial sector as resilient but called for continued vigilance, judged the macroprudential stance broadly appropriate, and urged further strengthening of supervision including implementing remaining Financial Sector Assessment Program recommendations and reinforcing the AML/CFT framework; they also pressed for growth-friendly medium-term consolidation supported by key political decisions on revenues and spending efficiency, a stronger fiscal framework including reform of the debt brake rule ahead of reactivation, and sequenced structural reforms to lift potential growth. The Slovak authorities consented to publication of the staff report, which the IMF indicated will be posted shortly, and the next Article IV consultation is expected on the standard 12-month cycle.

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