SLOVAKIA


A small big country in the heart of Europe with beautiful scenery, tourism and hospitable people

Total area: 48,845 sq km
Population:  5.44 million
Government type: Parliamentary democracy
Administrative division: 8 regions (called “kraj”)
Capital + other major cities: Bratislava (424,000) + Kosice (237,000), Presov (95,000)
Currency: Euro (since January 2009)
Languages: Slovak 78.6%), Hungarian 9.4%, Roma 2.3%, Ruthenian 1%
Ethnicity: Slovak 80.7%, Hungarian 8.5%, Roma 2%, other and unspecified 8.8%
Religion: Roman Catholic 62%, Protestant 8%, Greek Catholic 4%, other 3%, none 13%
President: (Mr.) Andrej KISKA (since 15 June 2014)
Prime Minister:(Mr.) Robert FICO (since 4 April 2012)
Date of EU accession: 1 May 2004
map


Slovakia is a landlocked country with a population of 5.4 million, beautiful Alpine mountains (the High Tatras) as well as fertile lowlands near the Danube river and large industrial areas in different parts of its 49,000 sq. km territory. Its modern capital city of Bratislava is under an hour’s drive from Vienna, Austria. Slovakia has a liberal economy relying on the country’s manufacturing industries and services, and a successful record in international trade. It is part of the European Union, NATO, OECD, WTO and many other international organizations. Slovakia adopted the EUR currency as of 1 January 2009 – as historically only the second country in Central & Eastern Europe.



KEY FEATURES

  • 3rd richest country in the CEE region by GDP per capita (PPS)
  • World’s no. 1 in terms of car production per-capita
  • No. 6 worldwide in adapting to new technologies ; high innovation potential for R&D projects
  • Second CEE country to adopt Euro currency (2009)
  • Proximity to other CEE markets – 350 million potential customers within a radius of 1,000 km (625 miles)

MACROECONOMIC OVERVIEW


Selected economic indicators, Slovakia, 2010 - 2016

    2010 2011 2012 2013 2014 2015* 2016*
GDP
Real GDP growth
%
5.1
2.8
1.5
1.4
2.5
3.6
3.2
GDP at current prices
%
67.39
70.44
72.42
73.82
75.56
78.07
Foreign trade
Exports
€ bn
51.59
60.07
66.47
69.29
69.40
73.23
Imports
€ bn
52.57
60.71
63.81
66.15
66.65
71.33
Balance
€ bn
-0.98
-0.65
2.67
3.14
2.76
1.89
Prices
CPI - average inflation rate
%
0.7
4.1
3.7
1.5
-0.1
-0.3
-0.1
PPI - industry - average
%
0.2
4.4
2.0
-0.9
-3.4
-2.9
Employment
Registered unemployment
%
14.5
13.7
14.0
14.2
13.2
11.5
10.5
Average monthly gross wage
770
786
805
824
858
883
Exchange rates
SKK/USD average
-
-
-
-
-
-
-
-
SKK/EUR average
-
-
-
-
-
-
-
-

*2016 data - forecast
Source: Eurostat, International Monetary Fund, NBS, Slovak Statistical Office, 2016


Slovakia has made significant economic reforms since its separation from the Czech Republic in 1993, and immediately jumped into 15-year-long uninterrupted GDP growth from 1994 to 2008 averaging 4.7% per year over the whole period. With growing exports, general high openness toward international trade, robust GDP growth between 2001-2008 despite general European slowdown, the Slovak economy has been considered a tiger economy known as the Tatra Tiger. After a brief interlude in 2009, when the economy contracted by 4.8% primarily as a result of smaller inflows of FDI and reduced demand for Slovakia's exports, the national economy rebounded in the following year.

In 2012, Slovakia’s Prime Minister Robert Fico presented a fiscal consolidation package with proposed measures to decrease the state deficit below 3 percent of GDP and to underpin catch-up in living standards. As the pace of fiscal consolidation slows down and export markets strengthen, the economic growth is expected to pick up in 2016 and 2017, expanding by 3.2% and 3.3%, respectively. With the recovery of the labour market and stronger wages, private consumption is also expected to contribute positively to GDP growth for the first time in five years.

 


KEY SECTORS


Building on long-standing tradition and highly skilled labour force, Slovakia’s key industries are Automotive, Electronics, Mechanical engineering, Precision metalworking, Chemical engineering, Information technology, Energy and environmental technologies, Defence and security products, Plastics, R&D, Medical equipment.


The automotive sector plays a major role in the Slovak manufacturing industry. Slovakia is currently the country with the highest car production per capita in the world. The local production of VW, Audi, and Kia and a strong group of 274 automotive component manufacturers represents one third of Slovak exports. In 2015, Slovakia manufactured more than 1,000,000 passenger cars for the first time in its history.


Electronics industry is the second largest industrial sector and generated 8.3% of total exports in 2013. Among top multinationals active in the electrical and electronic industries, Foxconn has a factory in Nitra for Sony LCD TV manufacturing and Samsung in Galanta for computer monitors and television sets.


Chemicals & pharmaceuticals – the chemical sector is the 3rd strongest sector of the Slovak industry and chemicals and pharmaceuticals are responsible for 17% of Slovak exports. Chemical companies with the largest foothold include Slovnaft (the only oil refinery in Slovakia), Continental Matador (rubber and tires), Duslo (industrial fertilizers, rubber chemicals) and Zentiva (pharmaceuticals).




EXPORTS & IMPORTS


Slovakia belongs among the most open economies to international trade in Europe, in fact, Slovakia’ s exports/gdp ratio of 93.8% is the second highest in the EU and is surpassed only by Luxembourg, Malta and Ireland. Slovakia trades primarily with fellow EU members – 85% of exports and 79% of imports are destined for EU markets.


2015 export and import data:




Main import partners:
Germany - 15.4%
Czech Republic - 10.9%
Other Europe, nes - 10.6%
China - 8.5%
Rep. of Korea - 6.6%


Main export partners:
Germany - 22.7%
Czech Republic - 12.4%
Poland - 8.3%
Austria - 5.7%
France - 5.6%


Slovakia external trade - 2015




See references for our track record in Slovakia.



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