Slovak economy will be pushed to a faster growth pace when the Jaguar Land Rover factory begins production, the Finance Ministry predicted.
According to estimates made by the Slovak Finance Ministry, the country’s economic growth is set to reach 4.1 percent in 2018, from 3.6 percent in 2015, and to further accelerate to 4.6 percent in 2019, the fastest pace this decade. This trend will be pushed by the British brand’s Jaguar Land Rover planned factory, set to begin production in 2018. The growth will also be supported by the rise of the output at existing carmaking facilities in Slovakia, such as Volkswagen AG’s factory, the Ministry said. The country has become a very important automotive hub in Central Europe, as the government’s efforts to draw investments and to boost employment in Slovakia in the past decade have been translated into assembly plants build by Volkswagen AG, PSA Peugeot Citroen and Kia Motors Corp, as well as by parts suppliers such as Continental AG and Johnson Controls. Auto manufacturing was the main driver behind economic growth in recent years, representing now about a quarter of Slovakia’s exports, according to the Slovak Car Industry Association.
Jaguar Land Rover, owned by India’s Tata Motors, has announced in December it chose the Slovak city of Nitra as the site for a new factory. The company announced it planned to invest 1 billion pounds in the new manufacturing facility and would eventually employ around 2,800 people. The factory will have an initial capacity of 150,000 vehicles and construction is set to commence this year.