Slovakia

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Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of general economic information | Political outline

Economic indicators

Since 2000, Slovakia has been experiencing a sustained and steady GDP growth rate induced by the progress of integration into the European Union (it joined the EU in May 2004). Foreign direct investment (FDI) in Slovakia has increased dramatically, more than 600% since 2000. Earlier due to the privatization of the banking, energy and telecommunication sectors, the FDI inflows have been more recently encouraged by a business-friendly taxation system and the availability of a cheap and skilled labour force. The country also benefits because of its advantageous geographical position; being located at the crossroads of Central Europe. The rate of inflation is under control and the budgetary deficit is decreasing driven by some major structural reforms implemented within the process of integration into the Euro zone in January 2009. But on the other hand, these reforms have also disavantaged domestic demand and lowered the potential of economic growth. The GDP growth rate was 4.4% in 2006, 2.4% in 2007 and the forecasts are 2.0% for 2008.

Main indicators	2006	2007	2008	2009	2010
GDP (billions USD)	56.00	75.21	95.40e	87.89e	91.43e
GDP (constant prices, annual % change)	8.5	10.4	6.4	-2.1	1.9e
GDP per capita (USD)	10,348	13,898e	17,630	16,241	16,895e
General government balance (in % of GDP)	-3.5	-1.9e	-2.2	-2.9	-2.9
Inflation rate (%)	4.3	1.9	3.9e	1.7e	2.3
Unemployment rate (% of the labor force)	13.3	11.0	9.6	11.5	11.7
Current Account (billions USD)	-3.95	-4.08	-6.02	-5.04e	-4.53
Current Account (in % of GDP)	-7.1	-5.4e	-6.3	-5.7e	-5.0

Source: IMF - World Economic Outlook Database

Note: (e) Estimated data

Main sectors of industry

The agriculture sector is not much developed in Slovakia and accounts for less than 3.5% of GDP. The main agricultural products in the country are cereals, potatoes, sugar beets and grapes. The mountainous part of Slovakia has vast forests and pastures (used for intensive sheep grazing), and is rich in mineral resources including high-grade iron ore, copper, lead, and zinc. The heavy industrial sectors like metal and steel are still going through a phase of restructuring. High value-added industries like electronics, engineering and petro-chemistry are set up in the Western part of Slovakia. Sectors like automobile and consumer goods offer attractive opportunities to foreign investors. Fuelled by huge foreign investments in the automobile sector since 2006 Slovakia produces a great number of vehicles.
The services sector represented 64.2% of GDP in 2007, dominated by commerce and real estate. This figure shows how the Slovak economy is moving into the tertiary sector.

Breakdown of economic activity by sector	Agriculture	Industry	Services
Employment by sector (in % of total employment)	4.7	38.8	56.3
Value added (in % of GDP)	2.9	36.0	61.2
Value added (annual % change)	-19.5	14.0	10.2

- last available data.

Monetary indicators	2004	2005	2006	2007	2008
Euro (EUR) - Average annual exchange rate for 1 USD	32.26	31.02	29.70	24.69	21.36

Source: World Bank - World Development Indicators

Indicator of economic freedom

Score:: 69.4/100
Position:: moderately free
World Rank:: 36 out of 179
Regional Rank:: 21 out of 44

Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation

Country risk

See the country risk analysis provided by Ducroire.

Foreign trade in figures

The share of foreign trade in the country’s GDP has reached more than 160%. Because of high energy imports from Russia, as well as substantial imports of machinery and electric & electronic equipment used in its growing automobile and energy sectors Slovakia’s imports remain very high resulting in foreign trade deficit. Nevertheless, dynamics in the services sector and newly found potential regarding exports of cars is definitely going to reverse the trend. The country's top three import partners are Germany, the Czech Republic and Russia. Its top three export partners are Germany, the Czech Republic and Austria. The main commodities exported from Slovakia are vehicles, electric & electronic equipment, machinery, iron & steel, and mineral fuels & oils. The automobile sector is the largest export-oriented sector in the country.

Foreign trade indicators	2003	2004	2005	2006	2007
Imports of goods (millions USD)	22,593	29,220	34,214	44,283	58,715
Exports of goods (millions USD)	21,944	27,663	31,851	41,735	57,806
Imports of services (millions USD)	3,056	3,466	4,078	4,675	6,531
Exports of services (millions USD)	3,297	3,735	4,405	5,436	7,063
Imports of goods and services (annual % change)	7.4	8.3	12.4	17.7	8.9
Exports of goods and services (annual % change)	15.9	7.4	10.0	21.0	13.8
Imports of goods and services (in % of GDP)	77.7	77.2	80.8	88.3	87.5
Exports of goods and services (in % of GDP)	75.9	74.5	76.3	84.4	86.5
Trade Balance (millions USD)	-649	-1,557	-2,363	-2,549	-909
Trade Balance (including service) (millions USD)	-408	-1,288	-2,036	-1,787	-376
Foreign trade (in % of GDP)	153.5	151.6	157.1	172.7	174.0

Source: World Bank

Main partner countries

Main customers (% of exports)	2007
Germany	21.5%
Czech Republic	12.4%
France	6.8%
Italy	6.4%
Poland	6.2%
Austria	5.8%
Hungary	5.7%
United Kingdom	4.8%
Netherlands	3.6%
Spain	3.2%
United States	2.5%
Russia	2.3%
Belgium	2.1%
Romania	1.8%
Sweden	1.5%
Ukraine	1.4%
Turkey	1.1%
Denmark	1.0%
Switzerland	0.8%
Slovenia	0.8%
See more countries	46.7%

Main suppliers (% of imports)	2007
Germany	19.9%
Czech Republic	11.5%
Russia	9.4%
Hungary	5.4%
China	5.2%
South Korea	5.0%
Poland	4.2%
Italy	4.0%
France	3.9%
Austria	3.1%
Japan	1.6%
Spain	1.5%
United Kingdom	1.4%
Netherlands	1.3%
Belgium	1.2%
United States	1.1%
Ukraine	1.0%
Switzerland	0.8%
Sweden	0.7%
Turkey	0.7%
See more countries	48.7%

Source: Comtrade

Main products

Main exports (% of exports)	2007
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	24.2%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	19.6%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	10.0%
Iron and steelIron and steel	7.1%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	4.6%
Articles of iron or steelArticles of iron or steel	3.3%
Plastics and articles thereofPlastics and articles thereof	3.2%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	2.3%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	2.2%
Rubber and articles thereofRubber and articles thereof	2.0%
Aluminium and articles thereofAluminium and articles thereof	1.6%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	1.6%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	1.2%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	1.0%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	0.9%
Glass and glasswareGlass and glassware	0.8%
Organic chemicalsOrganic chemicals	0.7%
Railway or tramway locomotives, rolling-stock and...Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signalling equipment of all kinds	0.7%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.7%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	0.6%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.6%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.5%
Pharmaceutical productsPharmaceutical products	0.5%
Copper and articles thereofCopper and articles thereof	0.5%
Man-made filamentsMan-made filaments	0.5%
Sugars and sugar confectionerySugars and sugar confectionery	0.4%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.4%
CerealsCereals	0.4%
Miscellaneous chemical productsMiscellaneous chemical products	0.3%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.3%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.3%
FertilizersFertilizers	0.3%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.3%
Beverages, spirits and vinegarBeverages, spirits and vinegar	0.2%
Products of the milling industry; malt; starches;...Products of the milling industry; malt; starches; inulin; wheat gluten	0.2%
Zinc and articles thereofZinc and articles thereof	0.2%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.2%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.2%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.2%
Raw hides and skins (other than furskins) and...Raw hides and skins (other than furskins) and leather	0.2%
Ceramic productsCeramic products	0.2%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.2%
Live animalsLive animals	0.2%
Meat and edible meat offalMeat and edible meat offal	0.2%
Pulp of wood or of other fibrous cellulosic...Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard	0.2%
Ships, boats and floating structuresShips, boats and floating structures	0.2%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.2%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.2%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.2%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.2%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.2%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.1%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	0.1%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	0.1%
Man-made staple fibresMan-made staple fibres	0.1%
Impregnated, coated, covered or laminated textile...Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use	0.1%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.1%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.1%
See more products	34.6%

Main imports (% of imports)	2007
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	17.6%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	14.0%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	12.2%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	11.0%
Iron and steelIron and steel	4.1%
Plastics and articles thereofPlastics and articles thereof	4.1%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	3.6%
Articles of iron or steelArticles of iron or steel	3.1%
Pharmaceutical productsPharmaceutical products	2.4%
Rubber and articles thereofRubber and articles thereof	1.7%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	1.5%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	1.4%
Organic chemicalsOrganic chemicals	1.0%
Aluminium and articles thereofAluminium and articles thereof	1.0%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	0.9%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.9%
Miscellaneous chemical productsMiscellaneous chemical products	0.9%
Ores, slag and ashOres, slag and ash	0.9%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.7%
Glass and glasswareGlass and glassware	0.7%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.7%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	0.7%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.6%
Copper and articles thereofCopper and articles thereof	0.6%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	0.6%
Beverages, spirits and vinegarBeverages, spirits and vinegar	0.5%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.5%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.5%
Raw hides and skins (other than furskins) and...Raw hides and skins (other than furskins) and leather	0.5%
Meat and edible meat offalMeat and edible meat offal	0.4%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.4%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.4%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.4%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.4%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.4%
Zinc and articles thereofZinc and articles thereof	0.4%
Railway or tramway locomotives, rolling-stock and...Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signalling equipment of all kinds	0.4%
Impregnated, coated, covered or laminated textile...Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use	0.3%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.3%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.3%
Ceramic productsCeramic products	0.3%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.3%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.3%
Man-made filamentsMan-made filaments	0.3%
CottonCotton	0.3%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.3%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.3%
CerealsCereals	0.3%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.3%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.2%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.2%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.2%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.2%
Pulp of wood or of other fibrous cellulosic...Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard	0.2%
Sugars and sugar confectionerySugars and sugar confectionery	0.2%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.2%
Man-made staple fibresMan-made staple fibres	0.2%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.2%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	0.2%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.2%
FertilizersFertilizers	0.2%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.2%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.1%
Wool, fine or coarse animal hair; horsehair yarn...Wool, fine or coarse animal hair; horsehair yarn and woven fabric	0.1%
Knitted or crocheted fabricsKnitted or crocheted fabrics	0.1%
Photographic or cinematographic goodsPhotographic or cinematographic goods	0.1%
See more products	41.1%

Source: Comtrade

See more products: More imports (Intracen Data)
More exports (Intracen Data)

Sources of general economic information

Ministries: Ministry of the Economy
Ministry of Finance
Statistical Office: Statistical Office of the Slovak Republic
Central Bank: National Bank of Slovakia
Stock Exchange: Bratislava Stock Exchange (in Slovak)
Search Engines: Zoznam
Pages.sk
Dmoz.org
Economic portals: Slovakia information portal

Political outline

Executive Power: The President is the head of state and is elected by direct universal suffrage for a five-year term. Following the parliamentary elections, the leader of the majority party or the leader of a majority coalition is usually appointed Prime Minister by the President for a four-year term. The Prime Minister is the head of the government and enjoys the executive powers which include implementation of the law in the country and running the day-to-day affairs. The cabinet is appointed by the President on the recommendation of the Prime Minister.
Legislative Power: The legislature is unicameral in Slovakia. The parliament, called National Council, consists of 150 seats; its members are elected on the basis of proportional representation to serve four-year terms. The executive branch of government is directly or indirectly dependent on the support of the National Council, often expressed through a vote of confidence. Legislative power is vested in the National Council. The Prime Minister cannot dissolve the parliament, but the President can do so if circumstances require this. The people of Slovakia enjoy considerable political rights.
Main political parties: Slovakia has a multi-party system, with numerous parties in which no one party normally has a chance of gaining power alone, and parties need to work with each other to form coalition governments. The major political parties in the country are:

SNS (Slovak National Party), – a centre-right party based on principles of Christianity, Nationalism and Socialism;
KDH (Christian Democratic Movement), – Christian democrats;
Smer-SD (Direction - Social Democracy), – generally considered to be a left-of-centre political party;
SMK (Hungarian Coalition Party) , – a party of the ethnic Hungarian minority;
LS-HZDS (People's Party - Movement for a Democratic Slovakia), – a social democratic party;
SDKU-DS (Slovak Democratic and Christian Union - Democratic Party), – a Christian democratic party.
Current political leaders: President: Ivan GASPAROVIC (since June 2004) non-partisan, but nominated by political parties
Prime Minister: Robert FICO (since July 2006) Smer-SD, heading a coalition government with SDKU-DS and SMK
Next election dates: Presidential:July 2010
National Council: In 2010

Indicator of freedom of the press

World Rank:: 10/173
Evolution:: 6 places down compared to 2007

Source: Worldwide Press Freedom Index 2007, Reporters Without Borders

Indicator of political freedom

Ranking:: Free
Political freedom:: 1/7
Civil liberties:: 1/7

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