Slovakia

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Economics

Economy - overview

Slovakia has made significant economic reforms since its separation from the Czech Republic in 1993. Reforms to the taxation, healthcare, pension, and social welfare systems helped Slovakia consolidate its budget and get on track to join the EU in 2004 and to adopt the euro in January 2009. Major privatizations are nearly complete, the banking sector is almost entirely in foreign hands, and the government has helped facilitate a foreign investment boom with business friendly policies. Slovakia's economic growth exceeded expectations in 2001-08 despite a general European slowdown. Unemployment, at an unacceptable 18% in 2003-04, dropped to 7.7% in 2008 but remains the economy's Achilles heel. Foreign direct investment (FDI) accounted for much of the growth until 2008. Cheap and skilled labor, low taxes, a 19% flat tax for corporations and individuals, no dividend taxes, a relatively liberal labor code and a favorable geographical location are Slovakia's main advantages for foreign investors. Foreign investment in the automotive and electronic sectors has been especially strong. To maintain a stable operating environment for investors, the European Bank for Reconstruction and Development advised the Slovak government to refrain from intervening in important sectors of the economy. However, Bratislava's approach to mitigating the economic slowdown has included substantial government intervention and the option to nationalize strategic companies. RADICOVA's government, in power since July 2010, has allowed the budget deficit to rise slightly, to 7.9% of GDP in 2010. GDP fell nearly 5% in 2009 before gaining back 4% in 2010, and unemployment rose above 12% in 2010, as the global recession impacted many segments of the economy.

GDP (purchasing power parity):

$120.2 billion (2010 est.)

country comparison to the world: 62

$115.5 billion (2009 est.)

$121.3 billion (2008 est.)

note: data are in 2010 US dollars

 

GDP (official exchange rate):

$87.45 billion (2010 est.)

 

GDP - real growth rate:

4% (2010 est.)

country comparison to the world: 96

-4.8% (2009 est.)

5.8% (2008 est.)

 

GDP - per capita (PPP):

$22,000 (2010 est.)

country comparison to the world: 58

$21,100 (2009 est.)

$22,200 (2008 est.)

note: data are in 2010 US dollars

 

GDP - composition by sector:

agriculture: 3.8%

industry: 34.8%

services: 61.4% (2010 est.)

 

Labor force:

2.707 million (2010 est.)

country comparison to the world: 105

 

Labor force - by occupation:

agriculture: 3.5%

industry: 27%

services: 69.4% (December 2009)

 

Unemployment rate:

12.5% (2010 est.)

country comparison to the world: 131

11.4% (2009 est.)

 

Population below poverty line:

21% (2002)

 

Household income or consumption by percentage share:

lowest 10%: 3.1%

highest 10%: 20.9% (1996)

 

Distribution of family income - Gini index:

25.9 (2010)

 

Investment (gross fixed):

20.3% of GDP (2010 est.)

country comparison to the world: 112

 

Budget:

revenues: $28.92 billion

expenditures: $35.82 billion (2010 est.)

 

Taxes and other revenues:

33.1% of GDP (2010 est.)

country comparison to the world: 76

 

Budget surplus (+) or deficit (-):

-7.9% of GDP (2010 est.)

country comparison to the world: 186

 

Public debt:

41% of GDP (2010 est.)

country comparison to the world: 69

35.4% of GDP (2009 est.)

 

Inflation rate (consumer prices):

1% (2010 est.)

country comparison to the world: 25

1.6% (2009 est.)

 

Central bank discount rate:

1.75% (31 December 2010 est.)

country comparison to the world: 111

1.75% (31 December 2009)

note: this is the European Central Bank's rate on the marginal lending facility, which offers overnight credit to banks from the euro area; as of 1 January 2009 Slovakia became a member of the Economic and Monetary Union (EMU)

 

Commercial bank prime lending rate:

3.39% (31 December 2010 est.)

country comparison to the world: 180

2.91% (31 December 2009 est.)

 

Stock of narrow money:

$35.41 billion (31 December 2010 est.)

country comparison to the world: 51

$35.08 billion (31 December 2009 est.)

note: this figure represents the US dollar value of Slovak koruny in circulation prior to Slovakia joining the Economic and Monetary Union (EMU); see entry for the European Union for money supply in the euro area; the European Central Bank (ECB) controls monetary policy for the 17 members of the Economic and Monetary Union (EMU); individual members of the EMU do not control the quantity of money circulating within their own borders

 

Stock of broad money:

$51.92 billion (31 December 2010 est.)

country comparison to the world: 67

$54.21 billion (31 December 2009 est.)

 

Stock of domestic credit:

$66.62 billion (31 December 2010 est.)

country comparison to the world: 59

$66.11 billion (31 December 2009 est.)

 

Market value of publicly traded shares:

$4.15 billion (31 December 2010)

country comparison to the world: 82

$4.672 billion (31 December 2009)

$5.079 billion (31 December 2008)

 

Agriculture - products:

grains, potatoes, sugar beets, hops, fruit; pigs, cattle, poultry; forest products

 

Industries:

metal and metal products; food and beverages; electricity, gas, coke, oil, nuclear fuel; chemicals and manmade fibers; machinery; paper and printing; earthenware and ceramics; transport vehicles; textiles; electrical and optical apparatus; rubber products

 

Industrial production growth rate:

18.8% (2010 est.)

country comparison to the world: 5

 

Electricity - production:

24.7 billion kWh (2009 est.)

country comparison to the world: 66

 

Electricity - consumption:

28.75 billion kWh (2009 est.)

country comparison to the world: 62

 

Electricity - exports:

7.682 billion kWh (2009 est.)

 

Electricity - imports:

1.312 billion kWh (2009 est.)

 

Oil - production:

8,281 bbl/day (2010 est.)

country comparison to the world: 89

 

Oil - consumption:

83,810 bbl/day (2010 est.)

country comparison to the world: 85

 

Oil - exports:

78,940 bbl/day (2009 est.)

country comparison to the world: 69

 

Oil - imports:

139,200 bbl/day (2009 est.)

country comparison to the world: 59

 

Oil - proved reserves:

9 million bbl (1 January 2011 est.)

country comparison to the world: 91

 

Natural gas - production:

103 million cu m (2010 est.)

country comparison to the world: 79

 

Natural gas - consumption:

6.413 billion cu m (2010 est.)

country comparison to the world: 55

 

Natural gas - exports:

808 million cu m (2009 est.)

country comparison to the world: 38

 

Natural gas - imports:

6.425 billion cu m (2010 est.)

country comparison to the world: 29

 

Natural gas - proved reserves:

14.16 billion cu m (1 January 2011 est.)

country comparison to the world: 78

 

Current account balance:

-$3.173 billion (2010 est.)

country comparison to the world: 170

-$2.819 billion (2009 est.)

 

Exports:

$67.97 billion (2010 est.)

country comparison to the world: 46

$55.32 billion (2009 est.)

 

Exports - commodities:

machinery and electrical equipment 35.9%, vehicles 21%, base metals 11.3%, chemicals and minerals 8.1%, plastics 4.9% (2009 est.)

 

Exports - partners:

Germany 20.1%, Czech Republic 14.8%, Poland 7.9%, Hungary 7.3%, France 7.2%, Austria 7.1%, Italy 5.8% (2010)

 

Imports:

$67.77 billion (2010 est.)

country comparison to the world: 39

$53.67 billion (2009 est.)

 

Imports - commodities:

machinery and transport equipment 31%, mineral products 13%, vehicles 12%, base metals 9%, chemicals 8%, plastics 6% (2009 est.)

 

Imports - partners:

Czech Republic 18.9%, Germany 18.3%, Russia 9.5%, Hungary 7.4%, Poland 5.6%, South Korea 5.1%, Austria 4.9%, Italy 4.1% (2010)

 

Reserves of foreign exchange and gold:

$2.161 billion (31 December 2010 est.)

country comparison to the world: 114

$1.821 billion (31 December 2009 est.)

 

Debt - external:

$75.9 billion (30 June 2011 est.)

country comparison to the world: 48

$59.33 billion (30 June 2010 est.)

 

Stock of direct foreign investment - at home:

$50.68 billion (31 December 2010 est.)

country comparison to the world: 54

$52.64 billion (31 December 2009 est.)

 

Stock of direct foreign investment - abroad:

$2.83 billion (31 December 2010 est.)

country comparison to the world: 64

$3.697 billion (31 December 2009 est.)

 

Exchange rates:

euros (EUR) per US dollar -

0.755 (2010)

0.7198 (2009)

Slovak koruny (SKK) per US dollar -

21.05 (2008)

24.919 (2007)

29.611 (2006)

note: on 1 January 2009 Slovakia adopted the euro as legal tender