Economic growth in Slovakia is forecasted in 2016 to reach it fastest pace during the past six years, but only if the British automaker Jaguar Land Rover goes through with its plan to construct a new assembly facility in the country.
According to Finance Minister Peter Kazimir , if the investment is finalized, the impact of the receding growth and the lower public investment policy would be mitigated. Economic surge could amount to four percent next year if the automaker starts the construction of the plant in Nitra, western Slovakia, which has previously been selected by the Tata Motors owned manufacturer as the preferred location choice, commented Kazimir. Save for the JLR expenses, the Slovak economy would rise 3.1 percent in 2016, lower than the previously forecasted 3.7 percent seen back in June.
The UK luxury manufacturer is currently discussing with the Slovak government the final bits of the state support agreement for the assembly facility that should churn out on an annual basis around 300,000 vehicles. The plant is expected to deliver its first auto sometimes in 2018 and the automotive industry being one of Slovakia’s strengths during the past decade as South Korea’s Kia Motors, France’s PSA Peugeot Citroen moved to join Germany’s Volkswagen AG in setting up manufacturing operations in the nation. The economy would then advance by 3.6 percent in 2017 and even more in 2018 as the plant would start producing luxury vehicles and exports would grow accordingly.