In this page: Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline | COVID-19 Country Response
Slovakia has experienced sustained and steady GDP growth since its integration into the European Union in 2004, except for the financial crisis of 2008-2009, the Eurozone crisis of 2011-2012, and the COVID-19 pandemic. After growing 1.7% in 2022, the Slovak economy decelerated to 1.1% in 2023 due to reduced private and public consumption accompanied by a decline in exports and imports, coupled with inventory reductions, reflecting the weakening economic prospects in its primary export markets (EU Commission). The economic growth outlook for 2024 and 2025 stands at 2.3% and 2.6% respectively. Real wage hikes are expected to bolster private consumption, offering an additional stimulus. Furthermore, the absorption of EU funds is anticipated to significantly contribute to investment growth (EU Commission).
In 2023, the general government budget saw a significant deterioration due to heightened social transfers, raises in public sector wages, increased interest rates, amplified military spending, and temporary measures to support energy schemes benefiting households and firms. The deficit was estimated at 6.5% of GDP by national authorities. The EU Commission raised concerns about the 2024 budget, projecting the deficit at 6.3% in 2024. Similarly, the debt-to-GDP ratio is on an upward trajectory according to Fitch Ratings, which expects it to rise to 62.1% by end-2025 from 57.8% at end-2022. Interest costs, however, are anticipated to increase gradually, attributed to a favorable redemption profile characterized by an average maturity of 8.5 years and predominantly fixed-rate debt structures. As per the EU Commission, inflation surged to 11% in 2023, driven by elevated energy prices and their subsequent influence on other components. In 2024, the inflation rate is projected to decrease to 3.5%, largely due to the anticipated moderation in energy and consumer food prices. However, the persistent effects of energy prices and a constrained labor market are expected to exert upward pressure on prices within the service sector. By 2025, inflation is forecasted to decline further to 2.6%.
The unemployment rate decreased to 6.1% in 2023 (from 6.2% one year earlier) and is expected to hover around 5.9% in the short term, while the labor market remains tight. Overall, around 15.6% of the population is at risk of poverty (especially in the eastern part of the country), less than the EU average of 21.6% (Eurostat, latest data available). The country’s GDP per capita (PPP) was estimated at USD 37,459 in 2022 by the World Bank, 31% below the EU average.
Main Indicators | 2022 | 2023 (E) | 2024 (E) | 2025 (E) | 2026 (E) |
---|---|---|---|---|---|
GDP (billions USD) | 115.55 | 132.12 | 140.81 | 149.40 | 157.08 |
GDP (Constant Prices, Annual % Change) | 1.8 | 1.2 | 2.1 | 2.6 | 2.8 |
GDP per Capita (USD) | 21,262 | 24,337 | 25,935 | 27,523 | 28,952 |
General Government Balance (in % of GDP) | -1.4 | -4.4 | -5.3 | -5.6 | -5.6 |
General Government Gross Debt (in % of GDP) | 57.8 | 57.9 | 59.3 | 60.3 | 63.5 |
Inflation Rate (%) | 12.1 | 11.0 | 3.6 | 3.9 | 2.5 |
Unemployment Rate (% of the Labour Force) | 6.2 | 5.8 | 5.9 | 5.9 | 5.9 |
Current Account (billions USD) | -9.42 | -2.74 | -6.13 | -5.43 | -4.82 |
Current Account (in % of GDP) | -8.2 | -2.1 | -4.4 | -3.6 | -3.1 |
Source: IMF – World Economic Outlook Database , Latest available data
Note: (e) Estimated Data
The Slovak Republic boasts a highly qualified labor force of 2.81 million out of its 5.44 million population. The agriculture sector is minimally developed and represents only 2.2% of the GDP and 3% of employment (World Bank, latest data available), although nearly two-fifths of the land is arable. The main agricultural products in the country are cereals, potatoes, sugar beets, and grapes. The mountainous area of Slovakia features vast forests and pastures, which are utilized for intensive sheep grazing, and it is rich in mineral resources including iron, copper, lead, and zinc. According to the second estimate of yield by the Statistical Office of Slovakia, farmers expected to harvest approximately 3.2 million tons of densely sown cereals in 2023, representing an increase of 469,000 tons compared to the previous year. This marks a double-digit year-on-year growth of over 17%, primarily driven by significantly higher yields per hectare, reaching 5.7 tons. These yields surpass the five-year historical average.
The secondary sector represents 28.5% of the GDP and employs 36% of the workforce. Heavy industry sectors - such as metal and steel - are still undergoing a restructuring phase. High-value-added industries, like electronics, engineering, and petrochemicals, are concentrated in the western part of the country. Sectors like automobiles and consumer goods experienced a significant contraction during the pandemic but have started to recover relatively fast and are offering attractive opportunities to foreign investors. Although Slovakia’s competitiveness supports the recovery of the sector, global automotive demand remains sluggish. The World Bank estimates that the manufacturing sector alone accounts for one-fourth of Slovakia’s GDP. Figures from the national statistical office show that industrial production decreased by 0.6% year-on-year in 2023. The automobile industry experienced a year-on-year growth of 4.9%, the highest seen since 2018. Additionally, the manufacture of electrical equipment saw a positive impact with a growth rate of 7.4%. However, the manufacturing of rubber and plastic products witnessed a significant negative influence, declining by 8.9%, while manufacturing computer products experienced a notable 22% decrease.
The services sector contributes 58.5% of the GDP and employs around 62% of the active population. It is dominated by trade and real estate. The development of tourism may also become important for the Slovak economy in the coming years, as it has been one of the country's most dynamic sectors before the outbreak of the COVID-19 crisis. The sector showed signs of recovery in 2023 when accommodation establishments achieved a turnover worth almost EUR 563 million (excluding VAT), representing a year-on-year increase of 30%. The country’s banking sector consists of 26 financial institutions, it is strong and largely owned by foreign groups (mostly from Austria, Italy, and Belgium; whereas only four are owned by Slovakians, of which one is controlled by the government – data EBF). In 2023, turnover in retail trade reached a 4.5% lower value in constant prices than in 2022 (Statistics Slovakia).
Breakdown of Economic Activity By Sector | Agriculture | Industry | Services |
---|---|---|---|
Employment By Sector (in % of Total Employment) | 2.5 | 36.7 | 60.8 |
Value Added (in % of GDP) | 2.2 | 28.6 | 58.3 |
Value Added (Annual % Change) | 2.3 | -0.4 | 2.5 |
Source: World Bank - Latest available data.
Find more information about your business sector on our service Market Reports.
Monetary Indicators | 2016 | 2017 | 2018 | 2019 | 2020 |
---|---|---|---|---|---|
Euro (EUR) - Average Annual Exchange Rate For 1 MUR | 0.03 | 0.03 | 0.02 | 0.03 | 0.02 |
Source: World Bank - Latest available data.
Find out all the exchange rates daily on our service Currency Converter.
The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labour freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.
Economic freedom in the world (interactive map)
Source: Index of Economic Freedom, Heritage Foundation
The business rankings model measures the quality or attractiveness of the business environment in the 82 countries covered by The Economist Intelligence Unit’s Country Forecast reports. It examines ten separate criteria or categories, covering the political environment, the macroeconomic environment, market opportunities, policy towards free enterprise and competition, policy towards foreign investment, foreign trade and exchange controls, taxes, financing, the labour market and infrastructure.
Source: The Economist Intelligence Unit - Business Environment Rankings 2021-2025
See the country risk analysis provided by Coface.
Slovakia remains strongly dependent on external markets, with foreign trade representing 170.6% of its GDP (World Bank, latest data available). The country's strong industrial tradition, tax incentives, inexpensive and skilled workforce, rapidly developing infrastructure (boosted by an influx of EU funds), and fragile but real growth make it a preferred base for trade. Slovakia also benefits from an advantageous geographical location at the crossroads of Central Europe, representing a platform for re-exportation for the European automotive industry. In terms of product categories, in 2022, the country mainly exported machinery and transport equipment (57.7%), manufactured goods (16.9%), and chemical products (4.9%); while imports were led by machinery and transport equipment (43.8%), manufactured goods (14.2%), mineral fuels (14.1%), and food (5.1% - data Statistics Slovakia).
In 2022, Europe accounted for 88.6% of total exports and 73.9% of imports. On a country basis, Germany (20.9%), the Czech Republic (12.1%), Hungary (8.7%), Poland (7.7%), and France (58%) were the main destinations of Slovakia’s exports; whereas the main suppliers were Germany (14.1%), the Czech Republic (9.1%), China (7.5%), Russia (7.4%), South Korea (5.7%), and Poland (5.5% - data WTO).
Historically, Slovakia has an overall positive trade balance, though it has been decreasing over the last few years. For the last 14 years, the export of goods exceeded the import, but in 2022 the balance ended with significantly negative values: exports of goods totaled EUR 95.1 billion (+16.1 year-on-year) against EUR 98.2 billion in imports, up by 23.6% y-o-y. Higher prices of selected energies and materials had a significant impact on the record-high import. Nevertheless, according to preliminary data by Statistics Slovakia, the trade balance in goods returned to positive territory in 2023: exports surged by 5.4%, surpassing EUR 108 billion, while imports dropped by 2.9% totaling EUR 104 billion. Both export and import values crossed the EUR 100 billion mark, marking the highest volume since 2010.
Foreign Trade Indicators | 2019 | 2020 | 2021 | 2022 | 2023 |
---|---|---|---|---|---|
Imports of Goods (million USD) | 90,001 | 84,393 | 103,891 | 112,466 | 113,532 |
Exports of Goods (million USD) | 89,509 | 86,640 | 103,891 | 108,386 | 117,316 |
Imports of Services (million USD) | 10,929 | 9,247 | 10,665 | 12,182 | 11,652 |
Exports of Services (million USD) | 12,294 | 10,338 | 11,311 | 12,601 | 12,476 |
Imports of Goods and Services (Annual % Change) | 2.2 | -8.1 | 12.1 | 4.0 | n/a |
Exports of Goods and Services (Annual % Change) | 0.8 | -6.3 | 10.9 | 2.3 | n/a |
Imports of Goods and Services (in % of GDP) | 91.6 | 83.4 | 92.4 | 104.8 | n/a |
Exports of Goods and Services (in % of GDP) | 91.9 | 85.1 | 92.4 | 99.1 | n/a |
Trade Balance (million USD) | -1,261 | 1,241 | -574 | -6,960 | n/a |
Trade Balance (Including Service) (million USD) | 103 | 2,332 | 72 | -6,561 | n/a |
Foreign Trade (in % of GDP) | 183.5 | 168.5 | 184.7 | 203.9 | n/a |
Source: WTO – World Trade Organisation ; World Bank , Latest Available Data
Main Customers (% of Exports) |
2023 |
---|---|
Germany | 21.0% |
Czech Republic | 12.1% |
Poland | 7.3% |
Hungary | 7.1% |
France | 5.3% |
See More Countries | 47.2% |
Main Suppliers (% of Imports) |
2023 |
---|---|
Germany | 14.5% |
Czech Republic | 10.2% |
China | 7.4% |
Poland | 5.9% |
South Korea | 5.6% |
See More Countries | 56.4% |
Source: Comtrade, Latest Available Data
Source: Comtrade, Latest Available Data
To go further, check out our service Import-Export Flows.
11.5 bn USD of services exported in 2023 | |
---|---|
35.29% | |
26.49% | |
Miscellaneous business,...Miscellaneous business, professional, and technical services | 25.29% |
Research and developmentResearch and development | 1.20% |
18.91% | |
13.97% | |
1.86% | |
1.54% | |
0.69% | |
0.63% | |
0.35% | |
0.28% |
11.5 bn USD of services imported in 2023 | |
---|---|
32.61% | |
23.53% | |
Miscellaneous business,...Miscellaneous business, professional, and technical services | 21.71% |
Research and developmentResearch and development | 1.82% |
20.25% | |
11.26% | |
7.54% | |
1.80% | |
1.25% | |
1.09% | |
0.64% | |
0.03% |
Source: United Nations Statistics Division, Latest Available Data
- Direction-Social Democracy (Smer-SD): left-wing
- Progressive Slovakia (PS): centre, social-liberalism, pro-environment
- Voice – Social Democracy (HLAS-SD): social-democratic, pro-European
- Slovak National Party (SNS): right-wing, nationalist
- Ordinary People and Independent Personalities (OLaNO): catch-all, populist, anti-corruption
- Christian Democratic Movement (KDH): centre-right
- Freedom & Solidarity (SaS): centre-right, described as eurosceptic
Other parties include:
- For the People (Za ľudí): centrist, liberalism
- We Are Family (Sme rodina): centre-right
- Most-Híd: centre, liberal, looks to expand understanding between ethnic Slovaks and Hungarians
- New Majority (NOVA): centre-right, liberal
- Slovak Conservative Party (SKS): centre-right, social conservatism
- Party of the Hungarian Community (SMK-MKP): centre-right , Hungarian minority
- Together (SPOLU): liberal-conservative
The world rankings, published annually, measures violations of press freedom worldwide. It reflects the degree of freedom enjoyed by journalists, the media and digital citizens of each country and the means used by states to respect and uphold this freedom. Finally, a note and a position are assigned to each country. To compile this index, Reporters Without Borders (RWB) prepared a questionnaire incorporating the main criteria (44 in total) to assess the situation of press freedom in a given country. This questionnaire was sent to partner organisations,150 RWB correspondents, journalists, researchers, jurists and human rights activists. It includes every kind of direct attacks against journalists and digital citizens (murders, imprisonment, assault, threats, etc.) or against the media (censorship, confiscation, searches and harassment etc.).
The Indicator of Political Freedom provides an annual evaluation of the state of freedom in a country as experienced by individuals. The survey measures freedom according to two broad categories: political rights and civil liberties. The ratings process is based on a checklist of 10 political rights questions (on Electoral Process, Political Pluralism and Participation, Functioning of Government) and 15 civil liberties questions (on Freedom of Expression, Belief, Associational and Organizational Rights, Rule of Law, Personal Autonomy and Individual Rights). Scores are awarded to each of these questions on a scale of 0 to 4, where a score of 0 represents the smallest degree and 4 the greatest degree of rights or liberties present. The total score awarded to the political rights and civil liberties checklist determines the political rights and civil liberties rating. Each rating of 1 through 7, with 1 representing the highest and 7 the lowest level of freedom, corresponds to a range of total scores.
Political freedom in the world (interactive map)
Source: Freedom in the World Report, Freedom House
Any Comment About This Content? Report It to Us.
© eexpand, All Rights Reserved.
Latest Update: May 2024