Overview: The dissolution of Czechoslovakia into two independent states - the Czech Republic and Slovakia - on 1 January 1993 has complicated the task of moving toward a more open and decentralized economy. The old Czechoslovakia, even though highly industrialized by East European standards, suffered from an aging capital plant, lagging technology, and a deficiency in energy and many raw materials. In January 1991, approximately one year after the end of communist control of Eastern Europe, the Czech and Slovak Federal Republic launched a sweeping program to convert its almost entirely state-owned and controlled economy to a market system. In 1991-92 these measures resulted in privatization of some medium- and small-scale economic activity and the setting of more than 90% of prices by the market - but at a cost in inflation, unemployment, and lower output. For Czechoslovakia as a whole inflation in 1991 was roughly 50% and output fell 15%. In 1992 in Slovakia, inflation slowed to an estimated 8.7% and the estimated fall in GDP was a more moderate 7%. In 1993 GDP fell roughly 5%, with the disruptions from the separation from the Czech lands probably accounting for half the decline; exports to the Czech Republic fell about 35%. Bratislava adopted an austerity program in June and devalued its currency 10% in July. In 1993, inflation rose an estimated 23%, unemployment topped 14%, and the budget deficit exceeded the IMF target of $485 million by over $200 million. By yearend 1993 Bratislava estimated that 29% of GDP was being produced in the private sector. The forecast for 1994 is gloomy; Bratislava optimistically projects no growth in GDP, 17% unemployment, a $425 million budget deficit, and 12% inflation. At best, if Slovakia stays on track with the IMF, GDP could fall by only 2-3% in 1994 and unemployment could be held under 18%, but a currency devaluation will likely drive inflation above 15%.

National product: GDP - purchasing power equivalent - $31 billion (1993 est.)

National product real growth rate: -5% (1993 est.)

National product per capita: $5,800 (1993 est.)

Inflation rate (consumer prices): 23% (1993 est.)

Unemployment rate: 14.4% (1993 est.)

Budget:
revenues: $4.5 billion
expenditures: $5.2 billion, including capital expenditures of $NA (1993 est.)

Exports: $5.13 billion (f.o.b., 1993 est.)
commodities: machinery and transport equipment; chemicals; fuels, minerals, and metals; agricultural products
partners: Czech Republic, CIS republics, Germany, Poland, Austria, Hungary, Italy, France, US, UK

Imports: $5.95 billion (f.o.b., 1993 est.)
commodities: machinery and transport equipment; fuels and lubricants; manufactured goods; raw materials; chemicals; agricultural products
partners: Czech Republic, CIS republics, Germany, Austria, Poland, Switzerland, Hungary, UK, Italy

External debt: $3.2 billion hard currency indebtedness (31 December 1993)

Industrial production: growth rate -13.5% (December 1993 over December 1992)

Electricity:
capacity: 6,800,000 kW
production: 24 billion kWh
consumption per capita: 4,550 kWh (1992)

Industries: brown coal mining, chemicals, metal-working, consumer appliances, fertilizer, plastics, armaments

Agriculture: largely self-sufficient in food production; diversified crop and livestock production, including grains, potatoes, sugar beets, hops, fruit, hogs, cattle, and poultry; exporter of forest products

Illicit drugs: transshipment point for Southwest Asian heroin bound for Western Europe

Economic aid:
donor: the former Czechoslovakia was a donor - $4.2 billion in bilateral aid to non-Communist less developed countries (1954-89)

Currency: 1 koruna (Sk) = 100 halierov
Exchange rates: koruny (Sk) per US$1 - 32.9 (December 1993), 28.59 (December 1992), 28.26 (1992), 29.53 (1991), 17.95 (1990), 15.05 (1989); note - values before 1993 reflect Czechoslovak exchange rate

Fiscal year: calendar year

NOTE: The information regarding Slovakia on this page is re-published from the 1995 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Slovakia Economy 1995 information contained here. All suggestions for corrections of any errors about Slovakia Economy 1995 should be addressed to the CIA.