Slovakia Economy - 2021

GEOGRAPHICAL NAMES 

Economic overview

Slovakia’s economy suffered from a slow start in the first years after its separation from the Czech Republic in 1993, due to the country’s authoritarian leadership and high levels of corruption, but economic reforms implemented after 1998 have placed Slovakia on a path of strong growth. With a population of 5.4 million, the Slovak Republic has a small, open economy driven mainly by automobile and electronics exports, which account for more than 80% of GDP. Slovakia joined the EU in 2004 and the euro zone in 2009. The country’s banking sector is sound and predominantly foreign owned.

Slovakia has been a regional FDI champion for several years, attractive due to a relatively low-cost yet skilled labor force, and a favorable geographic location in the heart of Central Europe. Exports and investment have been key drivers of Slovakia’s robust growth in recent years. The unemployment rate fell to historical lows in 2017, and rising wages fueled increased consumption, which played a more prominent role in 2017 GDP growth. A favorable outlook for the Eurozone suggests continued strong growth prospects for Slovakia during the next few years, although inflation is also expected to pick up.

Among the most pressing domestic issues potentially threatening the attractiveness of the Slovak market are shortages in the qualified labor force, persistent corruption issues, and an inadequate judiciary, as well as a slow transition to an innovation-based economy. The energy sector in particular is characterized by unpredictable regulatory oversight and high costs, in part driven by government interference in regulated tariffs. Moreover, the government’s attempts to maintain low household energy prices could harm the profitability of domestic energy firms while undercutting energy efficiency initiatives.

Real GDP growth rate

2.4% (2019 est.)

3.9% (2018 est.)

3.04% (2017 est.)

Inflation rate (consumer prices)

2.6% (2019 est.)

2.5% (2018 est.)

1.3% (2017 est.)

Credit ratings

Fitch rating: A (2020)

Moody's rating: A2 (2012)

Standard & Poors rating: A+ (2015)

Real GDP (purchasing power parity)

$178.513 billion (2019 est.)

$174.47 billion (2018 est.)

$168.134 billion (2017 est.)

note: data are in 2010 dollars

GDP (official exchange rate)

$105.388 billion (2019 est.)

Real GDP per capita

$32,730 (2019 est.)

$32,032 (2018 est.)

$30,911 (2017 est.)

note: data are in 2010 dollars

Gross national saving

21.3% of GDP (2019 est.)

22.5% of GDP (2018 est.)

21.8% of GDP (2017 est.)

GDP - composition, by sector of origin

agriculture: 3.8% (2017 est.)

industry: 35% (2017 est.)

services: 61.2% (2017 est.)

GDP - composition, by end use

household consumption: 54.7% (2017 est.)

government consumption: 19.2% (2017 est.)

investment in fixed capital: 21.2% (2017 est.)

investment in inventories: 1.2% (2017 est.)

exports of goods and services: 96.3% (2017 est.)

imports of goods and services: -92.9% (2017 est.)

Ease of Doing Business Index scores

Overall score: 75.6 (2020)

Starting a Business score: 84.8 (2020)

Trading score: 100 (2020)

Enforcement score: 66.1 (2020)

Agricultural products

wheat, maize, sugar beet, milk, barley, rapeseed, potatoes, sunflower seed, soybeans, pork

Industries

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

Industrial production growth rate

2.7% (2017 est.)

Labor force

2.511 million (2020 est.)

Labor force - by occupation

agriculture: 3.9%

industry: 22.7%

services: 73.4% (2015)

Unemployment rate

5% (2019 est.)

5.42% (2018 est.)

Population below poverty line

11.9% (2018 est.)

Gini Index coefficient - distribution of family income

25.2 (2016 est.)

26.1 (2014)

Household income or consumption by percentage share

lowest 10%: 3.3%

highest 10%: 19.3% (2015 est.)

Budget

revenues: 37.79 billion (2017 est.)

expenditures: 38.79 billion (2017 est.)

Taxes and other revenues

39.4% (of GDP) (2017 est.)

Budget surplus (+) or deficit (-)

-1% (of GDP) (2017 est.)

Public debt

50.9% of GDP (2017 est.)

51.8% of GDP (2016 est.)

note: data cover general Government Gross Debt and include debt instruments issued (or owned) by Government entities, including sub-sectors of central, state, local government, and social security funds

Fiscal year

calendar year

Current account balance

-$3.026 billion (2019 est.)

-$2.635 billion (2018 est.)

Exports

$113.964 billion (2019 est.)

$113.092 billion (2018 est.)

$107.518 billion (2017 est.)

Exports - partners

Germany 22%, Czechia 11%, Poland 7%, France 7%, Hungary 6%, Austria 5%, United Kingdom 5% (2019)

Exports - commodities

cars and vehicle parts, video displays, broadcasting equipment, tires, refined petroleum (2019)

Imports

$107.88 billion (2019 est.)

$105.67 billion (2018 est.)

$100.689 billion (2017 est.)

Imports - partners

Germany 18%, Czechia 18%, Poland 8%, Hungary 7%, Russia 5% (2019)

Imports - commodities

cars and vehicle parts, broadcasting equipment, crude petroleum, natural gas, insulated wiring (2019)

Reserves of foreign exchange and gold

$3.622 billion (31 December 2017 est.)

$2.892 billion (31 December 2016 est.)

Debt - external

$115.853 billion (2019 est.)

$114.224 billion (2018 est.)

Exchange rates

euros (EUR) per US dollar -

0.82771 (2020 est.)

0.90338 (2019 est.)

0.87789 (2018 est.)

0.885 (2014 est.)

0.7634 (2013 est.)

NOTE: The information regarding Slovakia on this page is re-published from the 2021 World Fact Book of the United States Central Intelligence Agency and other sources. No claims are made regarding the accuracy of Slovakia 2021 information contained here. All suggestions for corrections of any errors about Slovakia 2021 should be addressed to the CIA or the source cited on each page.