Slovak economy might slow down due to hard Brexit: banker

"Hard Brexit" could hit Slovakia's business partners, and subsequently cause a slowdown in the Slovak economy. Slovak central bank (NBS) vice governor Jan Toth announced on Thursday.

"We've so far counted on Brexit being carried out in its softer form. If it takes place in a harder form, however, there would be a negative risk with respect to what we've expected so far," said Toth.

The deputy governor added that the final trade relation deal between Britain and the EU isn't yet known. NBS in its previous prognosis expected that the growth in the Slovak economy would slow down by 0.3 percent of GDP due to Brexit.

"The impact, however, could be rather closer to 0.5 percent of GDP," expected Toth, who further explained that the most significant impact won't be direct, as exports from Slovakia to Britain represent only some 4 percent.

"The impact will be seen indirectly through a slowdown in growth among Slovakia's trading partners, especially Germany, which exports to Britain to a greater extent. Weaker growth in Germany could be reflected in Slovak exports," stated the NBS vice-governor.

On Tuesday, British Prime Minister Theresa May in a speech on Brexit unveiled a tougher stance on Britain's withdrawal from the EU.

The hard Brexit prognosis includes British giving up full access to the single market alongside the EU. Endit