Slovakia Economy
Is Slovakia a wealthy country?
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.
Slovakia Economy Data
What is the GDP of Slovakia?
| Currency Name and Code | Euro (EUR) |
| GDP - Gross Domestic Product (PPP) | $165,570,000,000 (USD) |
| GDP - official exchange rate | $86,200,000,000 (USD) |
| GDP - real growth rate | 3.2% |
| GDP Per Capita | $29,500.00 (USD) |
| GDP by Sector- agriculture | 3.4% |
| GDP by Sector- Industry | 30.4% |
| GDP by Sector- services | 66.2% |
| GDP - composition, by end use |
household consumption: 56.8% government consumption: 18.2% investment in fixed capital: 22.2% investment in inventories: -0.5% exports of goods and services: 101.2% imports of goods and services: -97.9% |
| Population Below Poverty Line | 21% |
| Inflation Rate | 1% |
| Labor Force | 2,673,000 |
| Labor Force By Occupation- agriculture | 3.5% |
| Labor Force By Occupation- industry | 27% |
| Labor Force By Occupation- services | 69.4% |
| Unemployment Rate | 13.5% |
| Fiscal Year | calendar year |
| Annual Budget | $28,450,000,000 (USD) |
| Budget Surplus or Deficit - percent of GDP | -3.4% |
| Public Debt (% of GDP) | 16.9% |
| Taxes and other revenues - percent of GDP | 33.4% |
| Major 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 Growth Rate | 7.5% |
| Agriculture Products | grains, potatoes, sugar beets, hops, fruit; pigs, cattle, poultry; forest products |
| Exchange Rate per US Dollar | euro (EUR) |
| Commercial Bank Prime Lending Rate | 3.3% |