Wages are expected to increase this year, according to the Slovak National Bank (NBS). The central bank foresees a moderate slowdown in employment growth to 1.9 percent from 2 percent. This, however, is only temporary, says NBS governor Jozef Makúch. Wages should increase by 3.2 percent in 2017, followed by 2.8 percent in 2018. While the labor pool in Slovakia continues to dry out, NBS sees companies hiring more foreign workers. The situation could change in 2019 once several new automotive plants begin operating. Inflation should also increase to 1.2 percent this year and to 1.9 percent in 2018.
