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flag Slovakia Slovakia: Economic and Political Outline

Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

Economic Indicators

Since 2000, Slovakia has been experiencing a sustained and steady GDP growth rate, notably induced by its integration into the European Union in May 2004. 

The taxation system is well-adapted to the needs of trade and the workforce is highly qualified. The country also benefits from an advantageous geographical location, being located at the crossroads of Central Europe. Inflation is under control and the budgetary deficit is in constant decrease, mainly due to the major structural reforms set in place in the preparation process to its integration into the Euro zone. The disadvantage of these reforms is that they have created a load on domestic demand and they lower the potential of economic growth.

The Slovak economy has been affected by the financial crisis. The country has undergone into a global economic slowdown. Many industrial sites have closed and the population has seen its purchasing power decrease. The integration of the country into the Euro zone, which made disappear the risks in foreign market exchange, has allowed Slovakia to fight better the effects of the crisis. The situation has globally improved in the country and the chiefs of Slovak large companies predict positive perspectives for 2011 and 2012.  The country should experience a growth of more than 4% in 2011, one of the largest growth rates of the countries in Central Europe.

 
Main Indicators 2009201020112012 (e)2013 (e)
GDP (billions USD) 87.8287.45e97.24e101.20107.08
GDP (Constant Prices, Annual % Change) -4.84.03.3e3.34.3
GDP per Capita (USD) 16,18716,104e17,88918,59819,660
General Government Balance (in % of GDP) -6.4-6.7-4.2-3.4-2.9
General Government Gross Debt (in % of GDP) 35.441.8e44.946.947.1
Inflation Rate (%) 0.90.73.6e1.82.9
Unemployment Rate (% of the Labor Force) 12.114.413.412.311.3
Current Account (billions USD) -2.82-3.02e-1.23e-1.10-0.73
Current Account (in % of GDP) -3.2-3.5e-1.3e-0.7-

Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data

Note: (e) Estimated Data

Main Sectors of Industry

The agriculture sector is not much developed in Slovakia and it represents less than 3.5% of the GDP. The main agricultural products in the country are cereals, potatoes, sugar beets and grapes. The mountainous area of Slovakia has vast forests and pastures which are used for intensive sheep grazing, and it is rich in mineral resources including iron, copper, lead, and zinc.

The secondary sector represents about a third of the GDP. The heavy industry sector such as metal and steel are still in a restructuring phase. High value-added industries such as electronics, engineering and petro-chemicals are installed in the western part of the country. Some sectors, like the automobile and consumer goods, offer attractive investment opportunities to foreign investors.

The services sector represents about 60% of the GDP. It is dominated by trade and real estate.  The development of tourism can also become an important sector for the Slovak economy in the next following years.

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 3.6 37.9 58.4
Value Added (in % of GDP) 2.7 35.3 62.1
Value Added (Annual % Change) 6.0 6.0 -7.3

Source: World Bank - Last Available Data.

 
 
Monetary Indicators 20042005200620072008
Euro (EUR) - Average Annual Exchange Rate For 1 USD 32.2631.0229.7024.6921.36

Source: World Bank - Last Available Data.

 
 
Learn more about Market Analysis about Slovakia on Globaltrade.net, the Directory for International Trade Services.
 

Indicator of Economic Freedom

Score:
69.5/100
Position:
Moderately free
World Rank:
36/179
Regional Rank:
20/42

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

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Foreign Trade in Figures

The share of foreign trade in the country’s GDP has reached more than 200%. Due to the large energy imports from Russia, as well as substantial imports of machinery and electrical & electronic equipment used in its growing automobile and energy sectors, Slovakia’s cost of imports remains very high. Nevertheless, the dynamics of the tertiary sector and the potential in the field of automobile export should, in time, allow an equilibrium in its trade balance. Slovakia's three main suppliers are Germany, the Czech Republic and Russia.  Its three main clients are Germany, the Czech Republic and Austria.

The global economic crisis had a very negative impact in some industrial sectors, especially in the automobile. As a matter of fact, the decrease in demand in the rest of Europe has affected the Slovak production in its factories.  However, positive signs have appeared at the level of foreign trade in 2010.  The situation in Germany, one of the main trading partners of Slovakia, has been gradually improving and the demand of Slovak products from Germany should revive in 2011.

 
Foreign Trade Indicators 20062007200820092010
Imports of Goods (million USD) 44,98660,61673,91255,65066,151
Exports of Goods (million USD) 41,86258,51571,14256,08265,127
Imports of Services (million USD) 4,6786,4139,0667,9406,854
Exports of Services (million USD) 5,3796,9858,4146,2635,735
Imports of Goods and Services (Annual % Change) 17.78.93.38.48.0
Exports of Goods and Services (Annual % Change) 21.013.83.28.87.5
Imports of Goods and Services (in % of GDP) 88.487.885.3103.7105.7
Exports of Goods and Services (in % of GDP) 84.486.783.099.5102.5
Trade Balance (million USD) -2,549-909-8991,374182
Trade Balance (Including Service) (million USD) -1,787-376-1,584-355-806
Foreign Trade (in % of GDP) 172.8174.5168.3203.2208.3

Source: WTO - World Trade Organization ; World Bank , Last Available Data

 

Main Partner Countries

Main Customers
(% of Exports)
2010
Germany 19.2%
Czech Republic 13.7%
Poland 7.3%
France 6.8%
Austria 6.8%
See More Countries 46.1%
Main Suppliers
(% of Imports)
2010
Germany 16.1%
Czech Republic 10.3%
Russia 9.6%
South Korea 8.0%
China 6.2%
See More Countries 49.8%

Source: Comtrade, Last Available Data

 

Main Products

Main Exports
(% of Exports)
2010
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 14.2%
Television receivers, whether or not incorporating...Television receivers, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus; video monitors and video projectors 11.8%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 3.8%
Parts and accessories for tractors, motor vehicles...Parts and accessories for tractors, motor vehicles for the transport of ten or more persons, motor cars and other motor vehicles principally designed for the transport of persons, motor vehicles for the transport of goods and special purpose motor vehicles of heading 8701 to 8705, n.e.s. 3.6%
Transmission apparatus for radio-telephony,...Transmission apparatus for radio-telephony, radio-telegraphy, radio-broadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras; still image video cameras and other video camera recorders; digital cameras 2.1%
See More Products 64.5%
Main Imports
(% of Imports)
2010
Parts and accessories for tractors, motor vehicles...Parts and accessories for tractors, motor vehicles for the transport of ten or more persons, motor cars and other motor vehicles principally designed for the transport of persons, motor vehicles for the transport of goods and special purpose motor vehicles of heading 8701 to 8705, n.e.s. 7.4%
Parts suitable for use solely or principally with...Parts suitable for use solely or principally with transmission and reception apparatus for radio-telephony, radio-telegraphy, radio-broadcasting, television, television cameras, still image video cameras and other video camera recorders, radar apparatus, radio navigational aid apparatus or radio remote control apparatus, n.e.s. 6.8%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 4.7%
Petroleum gas and other gaseous hydrocarbonsPetroleum gas and other gaseous hydrocarbons 4.3%
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 2.6%
See More Products 74.1%

Source: Comtrade, Last Available Data

 
See More Products
More imports (Intracen Data)
More exports (Intracen Data)
 

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Sources of General Economic Information

Ministries
Ministry of the Economy
Ministry of Finance
Statistical Office
Statistical Office of the Slovak Republic
Central Bank
National Bank of Slovakia
Stock Exchange
Bratislava Stock Exchange (in Slovak)
Search Engines
Zoznam
Pages.sk
Dmoz.org
Economic Portals
Slovakia information portal

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Political Outline

Executive Power
The President is the head of state and is elected by direct universal suffrage for a five-year term. Following the parliamentary elections, the leader of the majority party or the leader of a majority coalition is usually appointed Prime Minister by the President for a four-year term. The Prime Minister is the head of the government and enjoys the executive powers which include implementation of the law in the country and running the day-to-day affairs. The cabinet is appointed by the President on the recommendation of the Prime Minister.
Legislative Power
The legislature is unicameral in Slovakia. The parliament, called National Council, consists of 150 seats; its members are elected on the basis of proportional representation to serve four-year terms. The executive branch of government is directly or indirectly dependent on the support of the National Council, often expressed through a vote of confidence. Legislative power is vested in the National Council. The Prime Minister cannot dissolve the parliament, but the President can do so if circumstances require this. The people of Slovakia enjoy considerable political rights.
Main Political Parties
Slovakia has a multi-party system, with numerous parties in which no one party normally has a chance of gaining power alone, and parties need to work with each other to form coalition governments. The major political parties in the country are:

SNS (Slovak National Party), – a centre-right party based on principles of Christianity, Nationalism and Socialism;
KDH (Christian Democratic Movement), – Christian democrats;
Smer-SD (Direction - Social Democracy), – generally considered to be a left-of-centre political party;
SMK (Hungarian Coalition Party) , – a party of the ethnic Hungarian minority;
LS-HZDS (People's Party - Movement for a Democratic Slovakia), – a social democratic party;
SDKU-DS (Slovak Democratic and Christian Union - Democratic Party), – a Christian democratic party.
Current Political Leaders
President: Ivan GASPAROVIC (since June 2004) – non-partisan, but nominated by political parties
Prime Minister: Iveta Radičová (since July 2010) Slovak Democratic and Christian Union – Democratic Party
Next Election Dates
Presidential:July 2014
National Council: In 2014
 

Indicator of Freedom of the Press

World Rank:
35/178
Evolution:
11 places up compared to 2009

Source: Worldwide Press Freedom Index 2010, Reporters Without Borders

 

Indicator of Political Freedom

Ranking:
Free
Political Freedom:
1/7
Civil Liberties:
1/7

Map of freedom 2010

 

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Last Updates: January 2012