* Slovak cbank follows euro zone peers with grim outlook
* Waning foreign demand joins anemic domestic, jobs hit
* Risk to 2013/14 on downside, austerity not helping
BRATISLAVA, Dec 7 The Slovak central bank cut
its growth outlook for this year and next on Friday, saying
failing demand from abroad has started to drag on the economy
alongside anaemic household and weak government spending.
The grimmer outlook for the euro zone country comes a day
after the European Central Bank cut growth outlook for the
The small Slovak economy, now fueled by record output of
Germany's Volkswagen and Kia Motors,
should slow its expansion to 1.6 percent in 2013 from 2.4
percent in 2012 and rebound to 3.5 percent in 2014, the bank
Slovakia grew between July and September at its slowest pace
since the euro zone crisis erupted three years ago, data showed
Germany, Slovaks' key business partner, was expected to grow
by just 0.4 percent next year, according to the Bundesbank's
outlook presented on Friday.
"The Slovak economy shows some resilience to developments in
the euro zone. Domestic demand, however, remains subdued," Jozef
Makuch, the Slovak central bank governor, told reporters.
"Risks to the growth are on the downside, stemming from
possible worsening of foreign demand and further fiscal
consolidation measures," added Makuch, who is also member of the
ECB's Governing Council.
The centre-left government decided to raise taxes for rich
Slovaks and companies next year, impose special corporate
levies, put spending cuts and public sector wage limits in place
to keep austerity drive on track.
Weaker than originally projected corporate and value added
tax collection, amounting for over 500 million euros in the
2012-2013 period, is a serious threat to the government's pledge
to cut the deficit below EU's threshold of 3 percent next year.