Slovakia Economy Profile 2009

Economy - overview

Slovakia has made significant economic reforms since its separation from the Czech Republic in 1993. Reforms to the taxation, healthcare, pension, and social welfare systems helped Slovakia to consolidate its budget and get on track to join the EU in 2004 and to adopt the euro in January 2009. Major privatizations are nearly complete, the banking sector is almost entirely in foreign hands, and the government has helped facilitate a foreign investment boom with business friendly policies such as labor market liberalization and a 19% flat tax. Foreign investment in the automotive and electronic sectors has been strong. Slovakia's economic growth exceeded expectations in 2001-08 despite the general European slowdown. Unemployment, at an unacceptable 18% in 2003-04, dropped to 8.4% in 2008 but remains the economy's Achilles heel. Despite its 2006 pre-election promises to loosen fiscal policy and reverse the previous DZURINDA government's pro-market reforms, FICO's cabinet has thus far been careful to keep a lid on spending in order to meet euro adoption criteria and has focused on regulating energy and food prices instead. The OECD expects Slovakia's GDP growth to be positive in 2009.

GDP (purchasing power parity)

$119.5 billion (2008 est.)
$112.3 billion (2007 est.)
$101.7 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$95.4 billion (2008 est.)

GDP - real growth rate

6.4% (2008 est.)
10.4% (2007 est.)
8.5% (2006 est.)

GDP - per capita (PPP)

$21,900 (2008 est.)
$20,600 (2007 est.)
$18,700 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 3.7%
industry: 37.2%
services: 59% (2008 est.)

Population below poverty line

21% (2002)

Labor force

2.254 million (2008 est.)

Labor force - by occupation

agriculture 4%, industry 39%, services 56.9% (30 September 2008)

Unemployment rate

7.7% (2008)
8.4% (2007 est.)

Household income or consumption by percentage share

lowest 10%: 3.1%
highest 10%: 20.9% (1996)

Distribution of family income - Gini index

26 (2005)
26.3 (1996)

Investment (gross fixed)

25.9% of GDP (2008 est.)

Budget

revenues: $31.23 billion
expenditures: $33.32 billion (2008 est.)

Public debt

28.7% of GDP (2008 est.)
46.6% of GDP (2004 est.)

Inflation rate (consumer prices)

4.6% (2008))
2.8% (2007 est.)

Central bank discount rate

3% (31 December 2008)
4.25% (31 December 2007)
note: this is the European Central Bank's rate on the marginal lending facility, which offers overnight credit to banks from the euro area; as of 1 January 2009 Slovakia became a member of the Economic and Monetary Union (EMU)

Commercial bank prime lending rate

6.42% (31 December 2008)

Stock of money

$25.52 billion (31 December 2008)
$26.17 billion (31 December 2007)
note: this figure represents the US dollar value of Slovak koruny in circulation prior to Slovakia joining the Economic and Monetary Union (EMU); see entry for the European Union for money supply in the euro area; the European Central Bank (ECB) controls monetary policy for the 16 members of the Economic and Monetary Union (EMU); individual members of the EMU do not control the quantity of money and quasi money circulating within their own borders

Stock of quasi money

$27.71 billion (31 December 2008)
$21.11 billion (31 December 2007)

Stock of domestic credit

$50.94 billion (31 December 2008)
$41.76 billion (31 December 2007)

Industries

metal and metal products; food and beverages; electricity, gas, coke, oil, nuclear fuel; chemicals and manmade fibers; machinery; paper and printing; earthenware and ceramics; transport vehicles; textiles; electrical and optical apparatus; rubber products

Industrial production growth rate

-3.7% (2008 est.)

Electricity - production

26.17 billion kWh (2007 est.)

Electricity - production by source

fossil fuel: 30.3%
hydro: 16%
nuclear: 53.6%
other: 0% (2001)

Electricity - consumption

26 billion kWh (2006 est.)

Electricity - exports

11.85 billion kWh (2007 est.)

Electricity - imports

12.73 billion kWh (2007 est.)

Oil - production

12,770 bbl/day (2007 est.)

Oil - consumption

82,860 bbl/day (2007 est.)

Oil - imports

134,100 bbl/day (2005)

Oil - exports

72,240 bbl/day (2005)

Oil - proved reserves

9 million bbl (1 January 2008 est.)

Natural gas - production

128 million cu m (2007 est.)

Natural gas - consumption

6.216 billion cu m (2007 est.)

Natural gas - exports

180 million cu m (2007 est.)

Natural gas - imports

6.268 billion cu m (2007 est.)

Natural gas - proved reserves

14.16 billion cu m (1 January 2008 est.)

Current Account Balance

-$6.43 billion (2008 est.)
-$4.482 billion (2007 est.)

Agriculture - products

grains, potatoes, sugar beets, hops, fruit; pigs, cattle, poultry; forest products

Exports

$72.57 billion (2008 est.)
$64.5 billion (2007 est.)

Exports - commodities

vehicles 25.9%, machinery and electrical equipment 21.3%, base metals 14.6%, chemicals and minerals 10.1%, plastics 5.4% (2004)

Exports - partners

Germany 20%, Czech Republic 13.1%, France 6.7%, Poland 6.6%, Hungary 6.3%, Austria 5.9%, Italy 5.8%, UK 4.7% (2008)

Imports

$73.62 billion (2008 est.)
$65.47 billion (2007 est.)

Imports - commodities

machinery and transport equipment 41.1%, intermediate manufactured goods 19.3%, fuels 12.3%, chemicals 9.8%, miscellaneous manufactured goods 10.2% (2003)

Imports - partners

Germany 20%, Czech Republic 17.7%, Russia 10.6%, Hungary 6.9%, South Korea 5.2%, Austria 5%, Poland 4.9%, China 4.1% (2008)

Reserves of foreign exchange and gold

$18.78 billion (31 December 2008 est.)
$18.96 billion (31 December 2007 est.)

Debt - external

$52.53 billion (31 December 2008)
$44.31 billion (31 December 2007)

Stock of direct foreign investment - at home

$44.12 billion (31 December 2008 est.)
$40.7 billion (31 December 2007 est.)

Stock of direct foreign investment - abroad

$1.867 billion (31 December 2008 est.)
$1.609 billion (31 December 2007 est.)

Market value of publicly traded shares

$5.079 billion (31 December 2008)
$6.971 billion (31 December 2007)
$5.574 billion (31 December 2006)

Economic aid - recipient

$235 million in available EU structural adjustment and cohesion funds (2004)

Currency (code)

SKK

Currency (code)

Slovak koruna (SKK)

Exchange rates

Slovak koruny (SKK) per US dollar - 21.05 (2008 est.), 24.919 (2007), 29.611 (2006), 31.018 (2005), 32.257 (2004)
note: on 1 January 2009 Slovakia adopted the euro as legal tender

Fiscal year

calendar year