Eslovàquia flag Eslovàquia: Visió econòmica i política

El context econòmic d'Eslovàquia

Economic Indicators

For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19.

Slovakia has experienced sustained and steady GDP growth since its integration into the European Union in 2004, except for the financial crisis of 2008-2009 and the Eurozone crisis of 2011-2012. In recent years, the Slovak economy had returned to growth, fuelled by the return of internal and European demand. Nevertheless, the outbreak of the COVID-19 pandemic and the global crisis it caused pushed the country into a heavy recession in 2020, with GDP estimated to have dropped by 4.8% due to a sharp contraction in investments, low foreign demand and a sharp drop in private consumption. In 2021, Slovakia met a growth of 4.4%, hindered by supply shortages that affected the automotive sector (which accounts for almost 14% of GDP alone). For 2022 the IMF forecasts a stronger growth of 5.2% followed by 4.3% in 2023, with domestic demand as the main growth driver.

The government deficit has increased to -3.4% in 2021 (from -2.1% one year earlier) because of the government measures implemented to contain the effects of the COVID-19 crisis and due to weak tax revenues and social contributions. Despite lower expenditure, the deficit should decrease only marginally over the forecast horizon. The debt-to-GDP ratio reached 61.4% in 2021 and is expected to increase slightly this year (62%) before decreasing to 60.1% in 2023 (IMF). Inflationary pressures have intensified last year ending at 2.4%, driven by adverse supply-side developments and labour shortages, and also by fast-rising commodity and input prices. Inflation is expected to further increase at the beginning of 2022, with average annual inflation of 3%. Overall, Slovakia remains a small economy, but has a strong financial system and offers a production platform for the European automotive and electronic industries. Structural problems that Slovakia faces are regional disparities, poor infrastructure, and an ageing population.
 
The unemployment rate picked up to 6.8% in 2021 (compared to 5.8% before the pandemic) despite the measures taken to mitigate the impact of the crisis. It should gradually decrease to 6.1% and 5.8% in 2022 and 2023, respectively. However, the expiry of the protective measures implemented on the labour market (such as the short-time work scheme) is likely to keep unemployment at higher levels than before the pandemic, while wage growth is likely to be weaker and regional disparity strong (West of Slovakia enjoys a strong concentration of foreign and domestic companies that curbs unemployment). Around 13.8% of the population is at risk of poverty (especially in the eastern part of the country), below the EU average of 21.9% (Eurostat, latest data available).

 
Main Indicators 201920202021 (e)2022 (e)2023 (e)
GDP (billions USD) 105.13e104.49116.75127.50137.63
GDP (Constant Prices, Annual % Change) 2.5-4.84.45.24.3
GDP per Capita (USD) 19,28919,14521,38323,32325,146
General Government Balance (in % of GDP) -1.8-2.1-3.4-3.5-3.2
General Government Gross Debt (in % of GDP) 48.260.361.462.060.1
Inflation Rate (%) 2.82.02.88.44.1
Unemployment Rate (% of the Labour Force) 5.86.76.86.15.8
Current Account (billions USD) -2.85-0.37-1.08-1.72-2.45
Current Account (in % of GDP) -2.7-0.4-0.9-1.3-1.8

Source: IMF – World Economic Outlook Database, October 2021

Note: (e) Estimated Data

Main Sectors of Industry

The Slovak Republic has a highly qualified labour force of 2.7 million out of its 5.4 million population. The agriculture sector is little developed and represented only 2.2% of the GDP and 2.8% of employment in 2021 (World Bank), although almost two-fifths of the land is arable. 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. In 2021 the country’s agricultural sector recorded a decrease of -14.3%, according to preliminary data from Eurostat, which can be explained by the ongoing COVID-19 pandemic.

The secondary sector represents 26.4% of the GDP and employs 36.1% of the workforce. Heavy industry sectors - such as metal and steel - are still in a restructuring phase. High value-added industries, like electronics, engineering, and petrochemicals, are installed in the western part of the country. Sectors like automobile and consumer goods experienced a sizeable contraction during the pandemic, but have started to recover relatively fast and are offering attractive opportunities to foreign investors. Although Slovakia’s competitiveness supports the recovery of the sector, global automotive demand remains sluggish. The World Bank estimates that the manufacturing sector alone accounts for more than one-fifth of Slovakia’s GDP (26.4%). Figures from the national statistical office show that in the first eleven months of 2021 industrial production decreased by 8.9% year-on-year. Such contraction can be explained among other factors by the fact that automotive production, which is a crucial sector of the Slovak economy, had its main production plants closed for the majority of the first half of 2021.

The services sector contributes 61.0% of the GDP and employs around 61.1% of the active population. It is dominated by trade and real estate. The development of tourism may also become important for the Slovak economy in the coming years, as it has been one of the country's most dynamic sectors before the outbreak of the COVID-19 crisis (6.2 million tourists before the pandemic). The country’s banking sector consists of 27 financial institutions, it is strong and largely owned by foreign groups (mostly from Austria, Italy, and Belgium; whereas only four are owned by Slovakians).

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 2.8 36.1 61.1
Value Added (in % of GDP) 2.2 26.4 61.0
Value Added (Annual % Change) -14.3 -12.7 -0.2

Source: World Bank, Latest Available Data. Because of rounding, the sum of the percentages may be smaller/greater than 100%.

 

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Indicator of Economic Freedom

Definition:

The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labour freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.}}

Score:
66,3/100
World Rank:
61
Regional Rank:
33

Economic freedom in the world (interactive map)
Source: Index of Economic Freedom, Heritage Foundation

 

Business environment ranking

Definition:

The business rankings model measures the quality or attractiveness of the business environment in the 82 countries covered by The Economist Intelligence Unit’s Country Forecast reports. It examines ten separate criteria or categories, covering the political environment, the macroeconomic environment, market opportunities, policy towards free enterprise and competition, policy towards foreign investment, foreign trade and exchange controls, taxes, financing, the labour market and infrastructure.

Score:
6.88/10
World Rank:
37/82

Source: The Economist Intelligence Unit - Business Environment Rankings 2021-2025

 

Country Risk

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Actualitzacions: September 2022

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