BRATISLAVA, Nov 4 (Reuters) - Slovakia cut its economic growth forecasts for this year and next on Tuesday, as the future euro zone economy braced to take a hit from the global financial crisis.
The finance ministry's regular update of economic forecasts showed it expected 2008 real annual gross domestic product (GDP) growth of 7.0 percent, compared with a previously expected 7.7 percent.
It also slashed its forecast for 2009 growth to 4.6 percent, from 6.5 percent. It joins the euro zone at the start of next year.
The forecasts, however, showed the ministry had maintained its prediction of average annual EU-norm inflation at 4.0 percent in 2008 and 3.9 percent next year.
The ministry did not have an immediate comment on the new set of predictions.
The government of Prime Minister Robert Fico, who came to power in 2006 on promises to spend more on the poor, had said earlier there were downside risks to its previous growth predictions because of the global financial crisis.
Slovakia, which will become the 16th member of the euro zone in January, has been largely shielded from a direct impact of the crisis on its banks and the EU has singled it out as one of the few economies that will ride out the crisis little-touched.
But the small and open ex-communist economy, relying heavily on exports of cars and electronics goods, is exposed to a weakening of demand for its goods in its main export markets in the West as consumers curtail spending.
Lower economic growth may bring smaller state budget revenues than projected this year and in 2009, which may push the government to reassess its expenditure plans and cut state spending.
The 2009 state budget draft, now in the government-controlled parliament for final debate and approval, is based on a previous 6.5 percent GDP growth forecast made before the financial markets turmoil escalated in September.
The central bank and analysts have called on the government to have spending cuts ready from the start of next year to react if revenues fall short of projections and make sure it meets the overall fiscal deficit target of 1.7 percent of GDP.

(Reporting by Peter Laca, editing by Mike Peacock) Keywords: SLOVAKIA GROWTH/ (peter.laca@thomsonreuters.com; +421 2 5341 8402; Reuters Messaging: peter.laca.reuters.com@reuters.net)

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