The economy of Slovakia is based upon Slovakia becoming an EU member state in 2004, and adopting the euro at the beginning of 2009. Its capital, Bratislava, is the largest financial centre in Slovakia. As of 2018 (1.Q.), the unemployment rate was 5.72%.
Due to the Slovak GDP growing very strongly from 2000 until 2008 – e.g. 10.4% GDP growth in 2007 – the Slovak economy was referred to as the Tatra Tiger.
|Economy of Slovakia|
|EU, WTO, OECD|
|GDP||$106.585 (nominal, 2018 est.) $191.216 billion (PPP, 2018 est.)|
|GDP rank||61st (nominal, 2018) 68th (PPP, 2018)|
|3.1% (2016) 3.1% (2017) 4.1% (2018e) 3.6% (2019e) |
GDP per capita
|$19,581 (nominal, 2018 est.) $35,129 (PPP, 2018 est.)|
GDP per capita rank
|40th (nominal, 2018) 37th (PPP, 2018)|
GDP by sector
|agriculture: 3.8% industry: 35% services: 61.2% (2017 est.)|
|2.397% (2019f est.) 2.525% (2018) 1.392% (2017)|
Population below poverty line
|16.3% at risk of poverty or social exclusion (2017)|
|23.2 low (2017, Eurostat)|
|0.855 very high (2017) (38th)|
|2.758 million (2017 est.)|
Employment: 72.4% (2018)
Labour force by occupation
|agriculture: 3.9% industry: 22.7% services: 73.4% (2015)|
|Unemployment||6.5% (2018, Eurostat)|
|automobiles; metal and metal products; electricity, gas, coke, oil, nuclear fuel; chemicals, synthetic fibers, wood and paper products; machinery; earthenware and ceramics; textiles; electrical and optical apparatus; rubber products; food and beverages; pharmaceutical|
|Exports||$80.8 billion (2017 est.)|
|vehicles and related parts 27%, machinery and electrical equipment 20%, nuclear reactors and furnaces 12%, iron and steel 4%, mineral oils and fuels 5% (2015 est.)|
Main export partners
| Germany 20.7% |
Czech Republic 11.6%
United Kingdom 6.0%
Austria 6.0% (2017)
|Imports||$80.07 billion (2017 est.)|
|machinery and electrical equipment 20%, vehicles and related parts 14%, nuclear reactors and furnaces 12%, fuel and mineral oils 9% (2015 est.)|
Main import partners
| Germany 19.1% |
Czech Republic 16.3%
South Korea 4.5%
France 4.3% China 4.2% (2017)
|$69.92 billion (31 December 2017 est.) Abroad: $21.29 billion (31 December 2017 est.)|
|−$2.005 billion (2017 est.)|
Gross external debt
|$75.04 billion (31 March 2016 est.)|
|50.9% of GDP (2017 est.)[note 1]|
|−1% (of GDP) (2017 est.)|
|Revenues||37.79 billion (2017 est.)|
|Expenses||38.79 billion (2017 est.)|
|Economic aid||$235 million in available EU structural adjustment and cohesion funds (2004)|
|$3.622 billion (31 December 2017 est.)|
Since the establishment of the Slovak Republic in January 1993, Slovakia has undergone a transition from a centrally planned economy to a free market economy, a process which some observers were to believe was slowed in the 1994–98 period due to the crony capitalism and other fiscal policies of Prime Minister Vladimír Mečiar's government. While economic growth and other fundamentals improved steadily during Mečiar's term, public and private debt and trade deficits also rose, and privatization was uneven. Real annual GDP growth peaked at 6.5% in 1995 but declined to 1.3% in 1999.
Two governments of the "liberal-conservative" Prime Minister Mikuláš Dzurinda (1998–2006) pursued policies of macroeconomic stabilization and market-oriented structural reforms. Nearly the entire economy has now been privatized, and foreign investment has picked up. Economic growth exceeded expectations in the early 2000s, despite recession in key export markets. In 2001 policies of macroeconomic stabilization and structural reform led to spiraling unemployment. Unemployment peaked at 19.2%  (Eurostat regional indicators) in 2001 and though it has fallen to (depending on the methodology) 9.8%( or 13.5% as of September 2006, it remains a problem. Solid domestic demand boosted economic growth to 4.1% in 2002. Strong export growth, in turn, pushed economic growth to a still-strong 4.2% in 2003 and 5.4% in 2004, despite a downturn in household consumption. Multiple reasons entailed a GDP growth of 6% in 2005. Headline consumer price inflation dropped from 26% in 1993 to an average rate of 7.5% in 2004, though this was boosted by hikes in subsidized utilities prices ahead of Slovakia's accession to the European Union. In July 2005, the inflation rate dropped to 2.0% and is projected at less than 3% in 2005 and 2.5% in 2006. In 2006, Slovakia reached the highest economic growth (8.9%) among the members of OECD and the third highest in the EU (just behind Estonia and Latvia). The country has had difficulties addressing regional imbalances in wealth and employment. GDP per capita ranges from 188% of EU average in Bratislava to only 54% in Eastern Slovakia.
In 2007, Slovakia obtained the highest GDP growth among the members of OECD and the EU, with the record level of 14.3% in the fourth quarter. In 2014, GDP growth was 2.4% and in 2015 and 2016 Slovakia's economy grew 3.6% and 3.3% respectively. For year 2018, National Bank of Slovakia predicts raise of GDP by 4%.
Foreign direct investment (FDI) in Slovakia has increased dramatically. Cheap and skilled labor, a 19% flat tax rate for both businesses and individuals, no dividend taxes, a weak labor code, and a favorable geographical location are Slovakia's main advantages for foreign investors. FDI inflow grew more than 600% from 2000 and cumulatively reached an all-time high of, $17.3 billion USD in 2006, or around $18,000 per capita by the end of 2006. The total inflow of FDI in 2006 was $2.54 billion. In October 2005 new investment stimuli introduced – more favorable conditions to IT and research centers, especially to be located in the east part of the country (where there is more unemployment), to bring more added value and not to be logistically demanding.
Origin of foreign investment 1996–2005 – the Netherlands 24.3%; Germany 19.4%, Austria 14.1%; Italy 7.5%, United States (8th largest investor) 4.0%. Top investors by companies: Deutsche Telekom (Germany), Neusiedler (Austria), Gaz de France (France), Gazprom (Russia), U.S.Steel (U.S.), MOL (Hungary), ENEL (Italy), E.ON (Germany)...
Foreign investment sectors – industry 38.4%; banking and insurance 22.2%; wholesale and retail trade 13.1%; production of electricity, gas and water 10.5%; transport and telecommunications 9.2%.
Foreign direct investment " on green field"
Slovak service sector grew rapidly during the last 10 years and now employs about 69% of the population and contributes with over 61% to GDP. Slovakia's tourism has been rising in recent years, income has doubled from 640 million USD in 2001 to 1.2 billion USD in 2005. However, this sector still remains underdeveloped in comparison with neighbouring countries.
Slovakia became industrialized mostly in the second half of the 20th century. Heavy industry (including coal mining and the production of machinery and steel) was built for strategic reasons because Slovakia was less exposed to the military threat than the western parts of Czechoslovakia. After the end of the Cold War, the importance of industry, and especially of heavy industry, declined. In 2010, industry (including construction) accounted for 35.6% of GDP, compared with 49% in 1990. Nowadays, building on a long-standing tradition and a highly skilled labor force, main industries with potential of growth are following sectors: Automotive, Electronics, Mechanical engineering, Chemical engineering, Information technology. The automotive sector is among the fastest growing sectors in Slovakia due to the recent large investments of Volkswagen (Bratislava), Peugeot (Trnava), Kia Motors (Žilina) and since 2018 also Jaguar Land Rover in Nitra. Passenger car production was 1,040,000 units in 2016, what makes Slovakia the largest automobile producer in produced cars per capita. Other big industrial companies include US Steel (metallurgy), Slovnaft (oil industry), Samsung Electronics (electronics), Foxconn (electronics), Mondi SCP (paper), Slovalco (aluminum production), Hyundai Mobis (automotive), Continental Matador (automotive) and Whirlpool Corporation. In 2006, machinery accounted for more than a half of Slovakia's export.
|Kia Motors Slovakia||5,184|
|Všeobecná zdravotná poisťovňa||2,981|
|U. S. Steel Košice||2,619|
|Slovenský plynárenský priemysel||1,493|
|U. S. Steel Košice||499|
|Slovenský plynárenský priemysel||318|
|Kia Motors Slovakia||209|
|Všeobecná úverová banka||160|
In 2016, agriculture accounted for 3.6% of GDP (compared to 6.9% in 1993) and occupied about 3.9% of the labor force (down from 10.2% in 1994). Over 40% of the land in Slovakia is cultivated. The southern part of Slovakia (bordering with Hungary) is known for its rich farmland. Growing wheat, rye, corn, potatoes, sugar beets, grains, fruits and sunflowers. Vineyards are concentrated in Little Carpathians, Tokaj, and other southern regions. The breeding of livestock, including pigs, cattle, sheep, and poultry is also important.
According to a recent report by the European Commission, Slovakia (along with some other Central and Eastern European economies) is low on the list of EU states in terms of innovation (Slovakia ranks 22nd). Within the EU, it ranks next to last on knowledge creation and last for innovation and entrepreneurship. In the process of transition to a knowledge economy, it particularly lacks investment into education and a broader application of IT. The World Bank urges Slovakia to upgrade information infrastructure and reform the education system. The OECD states that a stronger product market competition would help.
In March 2006, the Slovak government introduced new measures to implement the Action Plan for R&D and Innovation. The program covers the period from 2006 to 2010. The RDA is expected to launch at least one call for the expression of interests related to this program each year. The annual budget for the program will be set by the RDA. The overall amount available for the program depends on annual national budget resources and is likely to vary from year to year. Following an increase of around 50% in budget resources, the RDA disposes of a total budget of €19.31 million in 2006.
The minimum wage in Slovakia is set at 520 € per month, the average salary for 2017 was 1052 € per month, in the Bratislava region in 2017 the average salary was €1527 per month. As of February 2018 the unemployment rate stood at 5.88%.
Currency switch to the euro
Slovakia switched its currency from the Slovak crown (SK-slovenská koruna) to the Euro on 1 January 2009, at a rate of 30.1260 korunas to the euro.
|Exports € bn||49.5||39.7||35.0||56.8||62.8||64.4||64.8||73.12||74.35|
|Imports € bn||50.3||38.8||34.6||55.8||59.2||60.1||60.2||71.09||71.47|
Since 2007, Slovakia has been the world's largest producer of cars per capita, with a total of 1 080 000 in 2018 (1,001,520 in 2017 and 1,040,000 in 2016) cars manufactured alone in a country with 5 million people. With production of more than million cars in 2016, Slovakia was 20th in the list of worldwide car production by country and the 7th largest car producer in the European Union. Car manufacture is the largest industry in Slovakia with a share of 12% on the Slovak GDP in 2013 which was 41% of industrial production and 26% of Slovakia's export. 80,000 people were employed in the automotive industry in 2014. 1,500 people were employed when Jaguar Land Rover started production in Nitra in 2018.Bratislava Stock Exchange
Bratislava Stock Exchange (Slovak: Burza cenných papierov v Bratislave, abbr. BSSE, BCPB) is a Stock Exchange in Bratislava, that began its existence on 15 March 1991 according to adjudication of Ministry of Finance of Slovakia in 1990. BSSE is the only organizer of the market with the security papers in Slovakia. It is in operation since 21 June 2001.
The trading started at BSSE on 6 April 1993. The seat of the stock exchange is Vysoká 17, Bratislava.Drug policy of Slovakia
Drug policy of Slovakia is the legislative framework that governs all aspects of legal drugs and illegal drugs on the territory of Slovakia. It was established with the country's creation on 1 January 1993; the Slovak Republic taking over all commitments of the former Czechoslovakia. Both domestic and international law governs the manufacture, sale, transport and use of most drugs. Alcohol is the most used drug in Slovakia, featuring prominently in the Slovak culture. Slovakia consistently ranks among the top alcohol consuming countries in the world.
The majority of legal drugs are distributed through a dense network of private pharmacies. Non-prescription drugs are free to buy, but the majority of legal drugs are available only through a bureaucratic process. All citizens are required by law to pay health insurance; health insurance companies, in turn, pay doctors who prescribe the drugs. Due to the Act on Drugs and Medical Devices from 2011, Slovakia enjoys the second cheapest prescription drugs in the European Union, as of 2012.Slovak illegal drug policy is repressive and often described as "harsh", the law does not differentiate between hard drugs and soft drugs and sentences can in theory be as severe as life imprisonment. In Slovakia, illegal drug policy documents have no associated budgets and there is no review of executed expenditures. The only available data coming from an estimate from 2006 suggests that the expenditure represented 0.05% of GDP, with 63.3% for public order and safety, 14.8% for treatment, 7.6% for prevention, 1.8% for coordination, 1.3% for education, 0.9% for harm reduction and 10.3% for other areas.Gorilla scandal
Gorilla scandal (Slovak: Kauza Gorila) is a political corruption scandal in Slovakia. It is named after a Slovak Secret Service wiretap file (Slovak: Gorila) from the years 2005-2006 which leaked to the internet in December 2011. The file suggests information about politicians, officials and business executives discussing kickbacks in return for procurement and privatisation contracts. However the accuracy of the content has not been officially confirmed yet and due to lack of the original tapes it is rather speculation than evidence of true conversations. The file presents alleged massive corruption at the highest level and its leak to the public rocked the Slovak political scene.The Gorilla scandal resulted in a wave of nationwide political protests across the country, that organized themselves into a coordinated effort called Protest Gorila. The scandal also influenced the results of the 2012 Slovak parliamentary election. Although the full contents of the file have not yet been confirmed, Interior Minister Daniel Lipšic has confirmed the intelligence agency did carry out a wiretapping operation named Gorilla. On 12 January 2012 the Regional Court in Bratislava confirmed it allowed the Gorilla wiretaps. However, the accuracy of the content has not been officially confirmed.Jirko Malchárek
Jirko Malchárek is a former Minister of Economy of Slovakia, former deputy prime minister of Slovakia and former racing driver.
Malchárek was born June 28, 1966 in Jeseník, Czechoslovakia (now part of Czech Republic). He was educated in technical field and graduated at the Slovak University of Technology in Bratislava.
He was in the Slovak National Council from 1998 to 2006, initially for the Party of Civic Understanding (Strana občianskeho porozumenia) and from 2002 as a member of the Alliance of the New Citizen, of which he is a founding member. In September 2005 he abandoned Alliance of the New Citizen and became a member of Nádej (English: Hope), which did not get into parliament in the 2006 elections.
He is interested in automobile racing and raced for 11 years, including occasional forays into international racing, such as the FIA GT Championship, and in 2002 he was a test driver of Minardi. He is a co-founder of BECEP, organization dedicated to safety of automobile traffic.Ján Počiatek
Ján Počiatek (born 16 September 1970) is a Slovak politician and economist. He served as Minister of Finance from 2006 to 2010 and as Minister of Transport, Construction, and Regional Development from 2012 to 2016.
He speaks English fluently and also has an advanced knowledge of German and Russian. Počiatek is a graduate of the University of Economics in Bratislava. He graduated in 1997 as a qualified engineer in economics.For his contribution in preparing Slovakia's entry into the Eurozone, the international financial affairs publication The Banker named Počiatek as the "Best finance minister for the year 2008 in Europe."List of Slovak billionaires by net worth
This is a list of Slovak billionaires based on an annual assessment of wealth and assets compiled and published by Forbes magazine in 2017.List of Slovak regions by GDP
This is a list of Slovakian regions by GDP and GDP per capita. The equivalent countries which are comparable to the Slovak regions in GDP are chosen by Worldbank data for the same year.National Bank of Slovakia
National Bank of Slovakia (Slovak: Národná banka Slovenska, NBS), is the central bank of Slovakia, which is a member of the European Union and the European System of Central Banks. Since 1 January 2009, it has also been a member of Eurosystem.
It has 9 regional branches and it is superior to all the banks in Slovakia.Outline of Slovakia
The following outline is provided as an overview of and topical guide to Slovakia:
Slovakia – landlocked sovereign country located in Central Europe. Slovakia has a population of over five million and an area of 49,035 square kilometres (18,933 sq mi). The Slovak Republic borders the Czech Republic and Austria to the west, Poland to the north, Ukraine to the east and Hungary to the south. The largest city is its capital, Bratislava. It is a member of the European Union.Pavol Rusko
Pavol Rusko is the former leader of the Slovak political party Aliancia nového občana (Alliance of the New Citizen). He also owned the TV Markíza television station. He has two children, daughter Lívia and son Pavol.Privatization in Slovakia
Privatization in Slovakia occurred primarily in the 1990s as a result of the Velvet Revolution in 1989 and after the creation of Slovak Republic in 1993 due to the splitting of Czechoslovakia. While the Czech Republic, under the leadership of President Václav Havel and Prime Minister Václav Klaus, has emerged as a favorite for Western investors and entrepreneurs, Slovakia under autocratic Prime Minister Vladimír Mečiar struggled with the transition.Robert Nemcsics
Robert Nemcsics is a Slovak politician. He served as a deputy prime minister, Minister of Economy and acting Minister of Privatization. He has experience with high management because before he entered politics he was a manager in several important Slovak companies.SARIO
SARIO, Slovak Investment and Trade Development Agency (Slovenská agentúra pre rozvoj investícií a obchodu in Slovak) is a government agency established in the Slovak Republic in 2001, which works under the direction of the Ministry of Economy of the Slovak Republic.
SARIO operates internationally and domestically; its officials are regularly invited to attend professional forums to present and discuss issues of foreign direct investments and foreign trade. SARIO has a network of six regional offices in Slovakia and operates worldwide via 46 Commercial representatives of the Slovak Ministry of Economy. Currently, SARIO employs approximately 100 people.Spoločnosť s ručením obmedzeným
Spoločnosť s ručením obmedzeným (abbreviation spol. s r. o. or s. r. o.; literal translation: "company with limited liability") is a Slovak law business entity, the legal structure for a private limited liability company. It is the rough equivalent of United States LLC and United Kingdom (and certain Commonwealth countries) Ltd. It is regulated under § 105 – 153 of Act. No 513/1991 Coll. (Commercial Code as amended).It is very popular form of business organization due to ensurance of limited liability in exchange for a relatively small investment into the registered capital. From one to 50 associates can found it through a founding agreement with minimum registered capital of €5000, minimum €750 per person, in money or other property.Tatra
Tatra may refer to:
Tatra Mountains, a mountain range, part of the Carpathian Mountains, between Slovakia and Poland
Tatra (company), a car and truck manufacturer from the Czech Republic
Tatra County (powiat tatrzański), an administrative division of Poland in the region of the Tatra Mountains
Tatra National Park, Poland, a National Park
Tatra National Park, Slovakia, one of the nine national parks in Slovakia
ČKD Tatra, a producer of trams from the Czech Republic
Tatra Guitar, musical instrument made by Czech national instrument makers in the communist era
Tatra (milk), a Czech milk produced by the Mlékárna Hlinsko
Tatra (beer), a Polish beer produced by the Żywiec Brewery
"Tatra Tiger", the nickname for the economy of Slovakia during its high growth period since 1998
Tatra, Estonia, a village in Kambja Parish, Tartu County, Estonia
Tatra River in Estonia
Tátra class destroyer, a torpedo boat class of the Austro-Hungarian Navy
Tatra Pine Vole, a species of vole
Tatra father of Grod, ruler of the Crimean Huns after Ernakh.
FK Tatra Kisač, Slovak minority club based in Kisač, SerbiaTatra Tiger
"Tatra Tiger" is a nickname that refers to the economy of Slovakia in period 2002 – 2007 and after 2010 following the ascendance of a right-wing coalition in September 2002 which engaged in a program of liberal economic reforms. The name "Tatra Tiger" derives from the local Tatra mountain range.
In 2004 and 2005, Slovakia had one of the highest gross domestic product growth rates in the European Union after some of the Baltic countries, reaching 6%. In 2006, the year-over-year growth amounted to an unexpected 9.8% in the 3rd quarter, which helped to increase the overall annual economic growth expectation for 2006 from 6%-6.5% to 8.2%. This 9.8% growth (a low estimate) can be partly ascribed to the launch of production at a new Peugeot SA plant. The growth came as a surprise to local analysts, given that another big foreign investor, Kia, launched its production in late 2006. In 4Q of 2007, the growth was 14.3%.
However, public polling shows that despite the resultant high growth rates, the public does not universally approve of the reforms, because they are associated with a drastic loss of government programs (reform of the previously government-run health system, complete reform of the pension system, etc.), the replacement of progressive taxation with a flat tax, rapid changes of laws and other legal regulations, and rising property prices. Moreover, unemployment jumped to very high levels immediately after the reforms began in 1998, although it decreased back to its 1998 level in 2006 and even below later on.
In the first quarter of 2009 the fall of GDP was -5.7% but in 2010 the GDP growth was 4.8% for the first quarter.
These days, Slovakia's GDP still grows faster than the EU average, in the period 2005-2011 Slovakia's GDP increased by 38.3% which is the highest growth of all EU countries.Trnavské automobilové závody
Trnavské automobilové závody (TAZ) was an automobile manufacturer in Trnava, Slovakia, that produced cars between 1973 and 1999. When the company folded the manufacturing rights to the van TAZ 1500 (earlier Škoda 1203) was bought by Ocelot Auto. TAZ was one part of the Škoda-Factories. Before the production of the 1203/1500, TAZ was a producer of automobile-parts and home appliances manufacturer.Volkswagen Bratislava Plant
The Volkswagen Bratislava Plant is an automotive factory and co-located test track in Bratislava, Slovakia owned by Volkswagen Group.
|States with limited|