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Moody’s Sees Slovak, Czech Outlook ‘Reasonably Positive’

The outlook for the Slovak and Czech economies remains “reasonably positive” while Hungary’s growth targets will probably be hard to reach this year, said Anthony Thomas, a senior sovereign risk analyst at Moody’s Investors Service.

The Czech economy should be “sufficiently” resilient to cuts in government spending and an increase in the value-added tax, Thomas said today in Prague at a conference. Hungary’s growth targets will be “very” difficult to reach and the country will probably need more fiscal measures.

“It’s very difficult to see the economy reaching the forecasts which the government has based its fiscal-consolidation program on,” Thomas said. “The government will probably have to take more measures in order to get the deficit down.”

Bulgaria’s budget deficit for this year “looks to be heading below” 3 percent of gross domestic product, Thomas noted.

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