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Slovak Economy


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 consolidate its budget and get on track to join the EU in 2004 after a period of relative stagnation in the early and mid 1990s 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. Slovakia's economic growth exceeded expectations in 2001-08 despite a general European slowdown. Foreign direct investment (FDI), especially in the automotive and electronic sectors, fueled much of the growth until 2008. Cheap and skilled labor, low taxes, a 19% flat tax for corporations and individuals, no dividend taxes, a relatively liberal labor code and a favorable geographical location are Slovakia's main advantages for foreign investors. The economy contracted 5% in 2009 primarily as a result of smaller inflows of FDI and reduced demand for Slovakia's exports before rebounding 4% in 2010 and 3.3% in 2011. Unemployment rose above 12% in 2010-11. The government of Prime Minister Iveta RADICOVA implemented reforms to curb corruption and improve government accountability - a major source of discontent with many Slovaks - and trimmed the budget deficit to 4.9% of GDP in 2011.

GDP (purchasing power parity):

$128.5 billion (2011 est.) (country comparison to the world: 64)
$124.4 billion (2010 est.)
$119.4 billion (2009 est.)
note: data are in 2011 US dollars

GDP (official exchange rate):

$96.09 billion (2011 est.)

GDP - real growth rate:

3.3% (2011 est.) (country comparison to the world: 112)
4.2% (2010 est.)
-4.9% (2009 est.)

GDP - per capita (PPP):

$23,600 (2011 est.) (country comparison to the world: 58)
$22,900 (2010 est.)
$22,000 (2009 est.)
note: data are in 2011 US dollars

GDP - composition by sector:

agriculture: 3.8%
industry: 35.5%
services: 60.7% (2011 est.)

Labor force:

2.713 million (2011 est.) (country comparison to the world: 106)

Labor force - by occupation:

agriculture: 3.5%
industry: 27%
services: 69.4% (December 2009)

Unemployment rate:

13.5% (2011 est.) (country comparison to the world: 139)
12.5% (2010 est.)

Population below poverty line:

21% (2002)

Household income or consumption by percentage share:

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

Distribution of family income - Gini index:

26 (2005) (country comparison to the world: 128)
26.3 (1996)

Investment (gross fixed):

23.2% of GDP (2011 est.) (country comparison to the world: 55)

Budget:

revenues: $32.53 billion
expenditures: $37.81 billion (2011 est.)

Taxes and other revenues:

33.9% of GDP (2011 est.) (country comparison to the world: 70)

Budget surplus (+) or deficit (-):

-5.5% of GDP (2011 est.) (country comparison to the world: 167)

Public debt:

43.3% of GDP (2011 est.) (country comparison to the world: 74)
41% of GDP (2010 est.)
note: data cover general Government Gross Debt, and includes debt instruments issued (or owned) by Government entities, including sub-sectors of central government, state government, local government, and social security funds.

Inflation rate (consumer prices):

3.9% (2011 est.) (country comparison to the world: 95)
1% (2010 est.)

Central bank discount rate:

1.75% (31 December 2011 est.) (country comparison to the world: 124)
1.75% (31 December 2010 est.) note: this is the European Central Bank's rate on the marginal lending facility, which offers overnight credit to banks from the euro area; Slovakia became a member of the Economic and Monetary Union (EMU) on 1 January 2009

Commercial bank prime lending rate:

3.8% (31 December 2011 est.) (country comparison to the world: 170)
3.39% (31 December 2010 est.)

Stock of narrow money:

$37.49 billion (31 December 2011 est.) (country comparison to the world: 52)
$35.41 billion (31 December 2010 est.)
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 17 members of the Economic and Monetary Union (EMU); individual members of the EMU do not control the quantity of money circulating within their own borders

Stock of broad money:

$56.88 billion (31 December 2011 est.) (country comparison to the world: 66)
$51.92 billion (31 December 2010 est.)

Stock of domestic credit:

$72.98 billion (31 December 2011 est.) (country comparison to the world: 57)
$66.62 billion (31 December 2010 est.)

Market value of publicly traded shares:

$4.736 billion (31 December 2011) (country comparison to the world: 85)
$4.15 billion (31 December 2010)
$4.672 billion (31 December 2009)

Agriculture - products:

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

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:

6.9% (2011 est.) (country comparison to the world: 45)

Electricity - production:

27.7 billion kWh (2011 est.) (country comparison to the world: 64)

Electricity - consumption:

28.76 billion kWh (2010 est.) (country comparison to the world: 62)

Electricity - exports:

10.5 billion kWh (2011 est.)

Electricity - imports:

10.9 billion kWh (2011 est.)

Oil - production:

8,281 bbl/day (2010 est.) (country comparison to the world: 91)

Oil - consumption:

83,810 bbl/day (2010 est.) (country comparison to the world: 83)

Oil - exports:

78,940 bbl/day (2009 est.) (country comparison to the world: 67)

Oil - imports:

139,200 bbl/day (2009 est.) (country comparison to the world: 57)

Oil - proved reserves:

9 million bbl (1 January 2011 est.) (country comparison to the world: 91)

Natural gas - production:

103 million cu m (2010 est.) (country comparison to the world: 79)

Natural gas - consumption:

5.9 billion cu m (2011 est.) (country comparison to the world: 56)

Natural gas - exports:

808 million cu m (2009 est.) (country comparison to the world: 39)

Natural gas - imports:

5.586 billion cu m (2011 est.) (country comparison to the world: 31)

Natural gas - proved reserves:

14.16 billion cu m (1 January 2011 est.) (country comparison to the world: 79)

Current account balance:

-$621.8 million (2011 est.) (country comparison to the world: 112)
-$3.166 billion (2010 est.)

Exports:

$86.71 billion (2011 est.) (country comparison to the world: 45)
$67.82 billion (2010 est.)

Exports - commodities:

machinery and electrical equipment 35.9%, vehicles 21%, base metals 11.3%, chemicals and minerals 8.1%, plastics 4.9% (2009 est.)

Exports - partners:

Germany 21.4%, Czech Republic 15.2%, Poland 7.9%, Hungary 7.8%, Austria 7.5%, France 6.7%, Italy 5.3% (2009 est.)

Imports:

$72.03 billion (2011 est.) (country comparison to the world: 43)
$67.63 billion (2010 est.)

Imports - commodities:

machinery and transport equipment 31%, mineral products 13%, vehicles 12%, base metals 9%, chemicals 8%, plastics 6% (2009 est.)

Imports - partners:

Germany 19.2%, Czech Republic 18.5%, Russia 11.4%, Hungary 7%, Poland 5.5%, Austria 4.6%, Italy 4.1%, China 4% (2009 est.)

Reserves of foreign exchange and gold:

$2.462 billion (31 December 2011 est.) (country comparison to the world: 114)
$2.161 billion (31 December 2010 est.)

Debt - external:

$72.94 billion (30 November 2011 est.) (country comparison to the world: 50)
$59.33 billion (30 June 2010 est.)

Stock of direct foreign investment - at home:

$52.78 billion (31 December 2011 est.) (country comparison to the world: 54)
$50.68 billion (31 December 2010 est.)

Stock of direct foreign investment - abroad:

$3.32 billion (31 December 2011 est.) (country comparison to the world: 64)
$2.83 billion (31 December 2010 est.)

Exchange rates:

euros (EUR) per US dollar -
0.7106 (2011 est.)
0.7543 (2010 est.)
0.7198 (2009 est.)
0.6827 (2008 est.)
0.7345 (2007 est.)

Fiscal year:

calendar year