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Slovakia vs. Austria

Economy

SlovakiaAustria
Economy - 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.

Austria is a well-developed market economy with skilled labor force and high standard of living. It is closely tied to other EU economies, especially Germany's, but also the US', its third-largest trade partner. Its economy features a large service sector, a sound industrial sector, and a small, but highly developed agricultural sector.

Austrian economic growth strengthen in 2017, with a 2.9% increase in GDP. Austrian exports, accounting for around 60% of the GDP, were up 8.2% in 2017. Austria's unemployment rate fell by 0.3% to 5.5%, which is low by European standards, but still at its second highest rate since the end of World War II, driven by an increased number of refugees and EU migrants entering the labor market.

Austria's fiscal position compares favorably with other euro-zone countries. The budget deficit stood at a low 0.7% of GDP in 2017 and public debt declined again to 78.4% of GDP in 2017, after reaching a post-war high 84.6% in 2015. The Austrian government has announced it plans to balance the fiscal budget in 2019. Several external risks, such as Austrian banks' exposure to Central and Eastern Europe, the refugee crisis, and continued unrest in Russia/Ukraine, eased in 2017, but are still a factor for the Austrian economy. Exposure to the Russian banking sector and a deep energy relationship with Russia present additional risks.

Austria elected a new pro-business government in October 2017 that campaigned on promises to reduce bureaucracy, improve public sector efficiency, reduce labor market protections, and provide positive investment incentives.

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
$498.78 billion (2019 est.)

$491.803 billion (2018 est.)

$479.433 billion (2017 est.)

note: data are in 2010 dollars
GDP - real growth rate2.4% (2019 est.)

3.9% (2018 est.)

3.04% (2017 est.)
1.42% (2019 est.)

2.58% (2018 est.)

2.4% (2017 est.)
GDP - per capita (PPP)$32,730 (2019 est.)

$32,032 (2018 est.)

$30,911 (2017 est.)

note: data are in 2010 dollars
$56,188 (2019 est.)

$55,631 (2018 est.)

$54,496 (2017 est.)

note: data are in 2010 dollars
GDP - composition by sectoragriculture: 3.8% (2017 est.)

industry: 35% (2017 est.)

services: 61.2% (2017 est.)
agriculture: 1.3% (2017 est.)

industry: 28.4% (2017 est.)

services: 70.3% (2017 est.)
Population below poverty line11.9% (2018 est.)13.3% (2018 est.)
Household income or consumption by percentage sharelowest 10%: 3.3%

highest 10%: 19.3% (2015 est.)
lowest 10%: 2.8%

highest 10%: 23.5% (2012 est.)
Inflation rate (consumer prices)2.6% (2019 est.)

2.5% (2018 est.)

1.3% (2017 est.)
1.5% (2019 est.)

2% (2018 est.)

2% (2017 est.)
Labor force2.511 million (2020 est.)3.739 million (2020 est.)
Labor force - by occupationagriculture: 3.9%

industry: 22.7%

services: 73.4% (2015)
agriculture: 0.7%

industry: 25.2%

services: 74.1% (2017 est.)
Unemployment rate5% (2019 est.)

5.42% (2018 est.)
7.35% (2019 est.)

7.7% (2018 est.)
Distribution of family income - Gini index25.2 (2016 est.)

26.1 (2014)
29.7 (2017 est.)

30.5 (2014)
Budgetrevenues: 37.79 billion (2017 est.)

expenditures: 38.79 billion (2017 est.)
revenues: 201.7 billion (2017 est.)

expenditures: 204.6 billion (2017 est.)
Industriesautomobiles; 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; pharmaceuticalconstruction, machinery, vehicles and parts, food, metals, chemicals, lumber and paper, electronics, tourism
Industrial production growth rate2.7% (2017 est.)6.5% (2017 est.)
Agriculture - productswheat, maize, sugar beet, milk, barley, rapeseed, potatoes, sunflower seed, soybeans, porkmilk, maize, sugar beet, wheat, barley, potatoes, pork, triticale, grapes, apples
Exports$113.964 billion (2019 est.)

$113.092 billion (2018 est.)

$107.518 billion (2017 est.)
$270.888 billion (2019 est.)

$263.145 billion (2018 est.)

$249.312 billion (2017 est.)
Exports - commoditiescars and vehicle parts, video displays, broadcasting equipment, tires, refined petroleum (2019)cars, packaged medical supplies, vehicle parts, medical vaccines/cultures, flavored water (2019)
Exports - partnersGermany 22%, Czechia 11%, Poland 7%, France 7%, Hungary 6%, Austria 5%, United Kingdom 5% (2019)Germany 28%, United States 7%, Italy 6%, Switzerland 5% (2019)
Imports$107.88 billion (2019 est.)

$105.67 billion (2018 est.)

$100.689 billion (2017 est.)
$253.276 billion (2019 est.)

$247.225 billion (2018 est.)

$235.385 billion (2017 est.)
Imports - commoditiescars and vehicle parts, broadcasting equipment, crude petroleum, natural gas, insulated wiring (2019)cars, vehicle parts, broadcasting equipment, refined petroleum, packaged medical supplies (2019)
Imports - partnersGermany 18%, Czechia 18%, Poland 8%, Hungary 7%, Russia 5% (2019)Germany 39%, Italy 7%, Czechia 5% (2019)
Debt - external$115.853 billion (2019 est.)

$114.224 billion (2018 est.)
$688.434 billion (2019 est.)

$686.196 billion (2018 est.)
Exchange rateseuros (EUR) per US dollar -

0.82771 (2020 est.)

0.90338 (2019 est.)

0.87789 (2018 est.)

0.885 (2014 est.)

0.7634 (2013 est.)
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.)
Fiscal yearcalendar yearcalendar year
Public debt50.9% 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
78.6% of GDP (2017 est.)

83.6% of GDP (2016 est.)

note: this is general government gross debt, defined in the Maastricht Treaty as consolidated general government gross debt at nominal value, outstanding at the end of the year; it covers the following categories of government liabilities (as defined in ESA95): currency and deposits (AF.2), securities other than shares excluding financial derivatives (AF.3, excluding AF.34), and loans (AF.4); the general government sector comprises the sub-sectors of central government, state government, local government and social security funds; as a percentage of GDP, the GDP used as a denominator is the gross domestic product in current year prices
Reserves of foreign exchange and gold$3.622 billion (31 December 2017 est.)

$2.892 billion (31 December 2016 est.)
$21.57 billion (31 December 2017 est.)

$23.36 billion (31 December 2016 est.)
Current Account Balance-$3.026 billion (2019 est.)

-$2.635 billion (2018 est.)
$12.667 billion (2019 est.)

$5.989 billion (2018 est.)
GDP (official exchange rate)$105.388 billion (2019 est.)$445.025 billion (2019 est.)
Credit ratingsFitch rating: A (2020)

Moody's rating: A2 (2012)

Standard & Poors rating: A+ (2015)
Fitch rating: AA+ (2015)

Moody's rating: Aa1 (2016)

Standard & Poors rating: AA+ (2012)
Ease of Doing Business Index scoresOverall score: 75.6 (2020)

Starting a Business score: 84.8 (2020)

Trading score: 100 (2020)

Enforcement score: 66.1 (2020)
Overall score: 78.7 (2020)

Starting a Business score: 83.2 (2020)

Trading score: 100 (2020)

Enforcement score: 75.5 (2020)
Taxes and other revenues39.4% (of GDP) (2017 est.)48.3% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)-1% (of GDP) (2017 est.)-0.7% (of GDP) (2017 est.)
Unemployment, youth ages 15-24total: 16.1%

male: 14%

female: 19.7% (2019 est.)
total: 8.5%

male: 9.2%

female: 7.8% (2019 est.)
GDP - composition, by end usehousehold 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.)
household consumption: 52.1% (2017 est.)

government consumption: 19.5% (2017 est.)

investment in fixed capital: 23.5% (2017 est.)

investment in inventories: 1.6% (2017 est.)

exports of goods and services: 54.2% (2017 est.)

imports of goods and services: -50.7% (2017 est.)
Gross national saving21.3% of GDP (2019 est.)

22.5% of GDP (2018 est.)

21.8% of GDP (2017 est.)
28.5% of GDP (2019 est.)

26.9% of GDP (2018 est.)

26.3% of GDP (2017 est.)

Source: CIA Factbook