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Slovak Republic Slovak Republic

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Slovak Republic

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EconomicPoliticalStructural

Slovak Republic – Quick View
ECR score73.42 (Mar 2011)
ECR rank28 (Mar 2011)
Economic
GDPUSD 87.48 billion
GNI per capita PPPUSD 21,658
FDI inflowUSD 17.88 million
Inflation0.7%
Central bank assetsUSD 35,407,539,372.95
Unemployment rate12.1%
Government deficitUSD 2,027.05 million
Tax revenueUSD 10,569.88 million
Political
Government typeParliamentary Democracy
Recent political crisisNA
Economic freedom score37th
Freedom of information score35th
Corruption perception index59th
Structural
Birth rate11.30 per ‘000
Population balanceUnder 14 – 15.32%
Population balanceOver 60 – 21.11%
Life expectancy yearsMale 71.27 years
Life expectancy yearsFemale 78.74 years
Mortality rate9.77 per ‘000
Literacy rate99.6%
Internet access74.3%

[Top] Economic Overview

Slovakia is rich in mineral resources, including coal, iron ore, copper, manganese, lead and zinc. Slovakia's main exports include vehicles, machinery, electrical equipment, metals, chemicals, minerals and plastics and the main imports are machinery, transportation equipment, manufactured goods, fuels and chemicals. Slovakia’s main trade partners are Germany, the Czech Republic, Austria, Italy and Poland.

(Source: National Statistics, eubusiness, info please)

Gross domestic product (GDP)

 

The GDP at current prices in 2010 was EUR 65.91 billion compared to EUR 63.05 billion in 2009.

 

                                                                 Slovak Republic GDP

(Source: National Statistics)

 

                                                              Slovak Republic GDP growth rate

The GDP at constant price was EUR 48.07 billion in 2009compared to EUR 50.42 billion in 2008.

 

(Source: IMF)

 

The GDP per capita at current prices in 2009 was EUR 11,690.09 compared to EUR 12,420.15 in 2008.

 

(Source: IMF)

 

Gross national income (GNI)

 

In 2010, the GNI per capita at PPP was USD 21,658. (Source: UNDP)

 

Trade balance

 

The export of goods and services in 2010 was valued at EUR 53,292.34 million, which increased from EUR 44,505.9 million in the previous year. The total import of goods and services in 2010 was USD 53,964.34 million compared to USD 44,784.46 million.

 

(Source: National Statistics)

 

Taxation

The tax in Slovakia is levied at a flat rate of 19% for individuals as well as corporates.

 (Source: worldwide tax)

Inflation rate

The inflation, in terms of HICP in 2010 was 0.7% which decreased from 0.9% in 2009.

                                                                  Slovak Republic Inflation rate

(Source: Central Bank of Slovakia)

 

FDI Inflow

 

In 2010, FDI was EUR 21 million.

 

(Source: Central Bank of Slovakia)

 

Portfolio investments

 

Slovakia’s portfolio investment in 2010 was EUR -1,294 million compared to EUR -662 million in 2009.

 

(Source: Central Bank of Slovakia)

 

Banking sector assets

 

The table below shows the assets of the Central Bank of Slovakia.

Currency Unit: EUR

Balance Sheet – Assets of Central Bank of Slovakia (EUR ‘000)

 

2011

2010

Gold and gold receivables

1,239,740

1,075,260

Claims on non-euro area residents denominated in foreign currency

651,913

537,665

Claims on euro-area residents denominated in foreign currency

267,950

112,058

Claims on non-euro area residents denominated in euro

3,089,605

2,910,931

Lending to euro area credit institutions related to monetary

Policy operations denominated in euro

1,264,000

1,005,000

Other claims on euro area credit institutions denominated in

euro

43,391

49,040

Securities of euro-area residents denominated in euro

12,547,350

11,038,843

Intra-Euro system claims

1,475,837

2,332,897

Items in the course of settlement

97

-

Other Assets

6,530,992

5,905,237

Total Assets

27,187,606

25,482,104

 

(Source: CentralBank of Slovakia)

[Top] Financial Indicators & Government Financial

Consumer price index

 

                                            Slovak Republic Consumer Price Index (CPI)

Base, December 2005 = 100

 

(Source:National Statistics)

 

The CPI in Slovakia in 2010 was at 112.21 compared to 111.43 in 2009.

 

Interest rates

 

Interest Rates, January 2011 (%)

Saving Deposits

Time Deposits

Overnight

up to 1 year

1 year - 2 years

over 2 years

0.38

2.25

2.73

2.67

 

(Source: Central Bank of Slovakia)

 

Money supply (currency in circulation)

 

                                                   Slovak Republic Money indicators

(Source: Central Bank of Slovakia)

 

Government expenditure

Government Expenditure (EUR million)

 

2010

2009

Current Expenditure

12,969.1

11,173.4

Capital Expenditure

2,367.9

2,158.7

Total expenditures

15,337

13,332.1

 

(Source: Central Bank of Slovakia)

External Debt

 

The gross external debt was USD 68,491.4 in December 2011.

(Source: Central Bank of Slovakia)

Debt

Year

Debt (EUR million)

Debt (% of GDP)

2009

22,311

30.41

2008

18,613

27.64

2007

18,053

29.35

2006

16,769

30.44

2005

16,847

34.16

 

(Source: National Statistics)

Official exchange rate

The Euro per dollar rate in  2011 was EUR 1.39. The exchange rate in 2010 was EUR 1.33.

                                                           Slovak Republic Exchange rate

(Source: Central Bank of Slovakia)

 Government finances

Sovereign debt dynamics

 

Fiscal balance

The fiscal deficit in 2010 was EUR 4,436.1 million  compared to the deficit of USD 2,791.3 million the previous year.

 

Fiscal balance (USD million)

 

 

                                                 Slovak Republic Fiscal Balance

(Source: Central Bank of Slovakia)

Total revenue

Total revenue in 2010 increased to EUR 10,900.9 million compared to EUR 10,540.8 million in 2009.

Total Revenue (EUR million)

 

2010

2009

Tax Revenues

7,962.4

8,024.9

Non-tax revenues

681.3

828.2

Grants and transfers

2,257.2

1,687.7

Foreign transfers

1,427

1,080.9

Total Revenues

10,900.9

10,540.8

 

(Source: Central Bank of Slovakia)

Tax revenue

In 2010, total tax revenues were EUR 7,962.4 million which decreased from EUR 8,024.9 million in 2009.

(Source: Central Bank of Slovakia)

Current account balance

Slovakia  registered a current account deficit in the past two years but managed to decrease the deficit to EUR 2,023.4 million in 2009 from EUR 4,432.4 million in 2008. The current account deficit as percent of GDP was -3.59% in 2009.

                                                         Slovak Republic Current account balance

(Source: Central Bank of Slovakia )

Balance of payments                        

Balance of Payments (EUR Million)

 

2011

2010

Current account

38.0

-1,636.5

Capital and financial account

3,730.7

515.7

Errors and omissions

-3,768.7

1,121.0

Overall balance

0.0

0.1

Reserve assets

0.0

-0.1

 

(Source: Central Bank of Slovakia, Central Bank of Slovakia)

[Top] Labour Force and Employment Overview

In 2010, the economically active population was 2,706,500 people, of which 2,317,500 were employed and 389,000 were unemployed.

 

(Source: National Statistics)

 

The total labour force participation rate in Slovakia was 59% in 2008. The participation rate for women was 51% while it was 68% for men.

 

(Source: World Bank)

 

The unemployment rate in Slovakia in 2010 was 14.4% compared to 12.1% of 2009.

 

                                       Slovak Republic Unemployment rate

(Source: National Statistics, Central Bank of Slovakia)

 

Minimum wage

The government raised the minimum wage from EUR 307.70 by 3% to EUR 317 per month.

 

(Source: fedee.com)

 

Level of unionisation

 

The main trade union in Slovakia is the Confederation of Trade Unions of the Slovak Republic (KOZSR) with 337,600 registered members.

 

(Source: ITUC)

[Top] Political Stability

Slovakia is a republic. The three branches of government are the executive, the legislative and the judiciary and they coordinate and supervise each other’s functions. Parliament, the government and the president are the supreme representative bodies of state power in the Slovak Republic.

 

Slovakia's parliament, known as the National Council, is unicameral. It has a statutory requirement of 150 members, who are directly elected for a four-year term.

 

The political parties active in Slovakia are:

 

·         Direction-Social Democracy (Smer-SD)

·         Slovak Democratic and Christian Union (SDKU)

·         Freedom and Solidarity (SaS)

·         Christian-Democratic Movement (KDH)

·         Bridge (Most-Hid)

·         Slovak National Party (SNS)

 

(Source: estandardsforum.org, IPU)

 

Regulatory environment in Slovakia

                                              Slovak Republic Economic Freedom Indices

(Source:Heritage.org)

 

Slovakia’s economic freedom score is 69.5 making its economy the 37th freest in the 2011 Index of Economic Freedom. Slovakia ranks 20th out of 43 regional countries in the European region.

 

Corruption perception

 

The Corruption Perceptions Index (CPI) is a survey to measure the perceived level of corruption across countries worldwide. Slovakia is ranked 59th on this list which indicates that the corruption levels in the public departments in Slovakia is moderate.

Slovakia slipped in the CPI rankings, it was ranked 56th in 2009 which indicates that levels of corruption have increased since 2010. (Source:transparency.org)

Freedom of information

 

Slovakia's constitution provides for freedom of the press. The print media also has no restrictions. Slovakia has laws on public information media, which regulates the rights and obligations of the media operators and their relations to government authorities, local governing bodies, public institutions and individuals.

(Source: Press Reference)

 

The World Press Freedom Index 2009 ranked Slovakia at 35th position with a score of 11.50, which indicates that media in Slovakia is free and not restricted. (Source: rsf.org)

 

 

Newspapers

 

·         Pravda

·         Sme

·         Novy Cas

·         The Slovak Spectator

 

 (Source: BBC)

 

Judicial system

 

The judicial system includes:

 

·         The Supreme Court of the Slovak Republic

·         Regional courts

·         District courts

 

District courts are the courts of first instance. Regional courts hear cases as appeal courts. The Supreme Court functions as an appellate review court.

 

The Constitutional Court of the Slovak Republic is an independent organisation with jurisdiction on constitutional matters. It also adjudicates in cases between central bodies of state administration.

 

(Source: Ministry of justice)

[Top] Demographic Overview

The total population of Slovakia in 2010 was 5.43 million, increasing by 0.2% over the previous year.

 

The gender ratio in Slovakia is not balanced i.e. there are approximately 94.2 men for every 100 women.

(Source: World Bank)

                                                                                                                 Slovak Republic Population by Gender

The population below 14 years of age in Slovakia accounts for 15.13% of the total population, the 15 to 64 year age group accounts for 72.79% and people above the age of 65 years made up 12.08% of the population in 2010.

The mortality rate of infants (per 1,000 live births) was 6.7 in 2010. Death per 1000 people was 9.80. The crude birth rate was 11.10 (per 1,000).

Life expectancy at birth for men and women was 71.40 years and 78.80 years respectively. 

(Source:  World Bank)

In 2010, only 56.8% of the population resided in urban areas. The urban population growth rate in 2010 was 0.42%. 

The total immigration in 2009 recorded 6,346 people, whereas total emigration recorded 1,979 people.

(Source: National Statistics, UN, World Bank)

 

Ethnic groups in Slovakia include:

 

·         Slovak

·         Hungarian

·         Roma

·         Ukrainian

·         Others

 

A large proportion of the population in Slovakia is Roman Catholic, followed by Protestant, Greek Catholic and others.

 

(Source: state.gov)

 

Slovakia ranked 31st out of 162 countries on the Human Development index 2010 conducted by the United Nations. The HDI provides a composite measure of three dimensions of human development: living a long and healthy life (measured by life expectancy), being educated (measured by adult literacy and gross enrolment in education) and having a decent standard of living (measured by purchasing power parity, PPP, income).

(Source: UNDP)

[Top] Soft Infrastructure

Education

Slovakia's literacy rate is 99.6%.

Primary education lasts for nine years and is compulsory. Most schools in Slovakia are state owned and few of them are privately owned. A few schools are owned by the Church.

The education system includes:

·         Kindergartens or pre-school education

·         Primary schools

·         Secondary schools

·         Universities

The gross enrolment ratio in education for both boys and girls is 80.5%. The expenditure on education is 3.6% of the GDP.

(Source: Slovakia site, UNDP)

Health care

Slovakia has a well developed health care system. Health care in Slovakia is financed under health insurance scheme. Health insurance in Slovakia is obligatory and is paid by every citizen of Slovakia. The insurance fee is deducted from the wages of employees. For children, the disabled and women on maternity leave, the medical insurance is paid by the state.

Every village has a health centre and every city has at least one hospital in addition to health centres.

Less than 5% of the population is undernourished. The expenditure on health in  2007 was 5.2% of the GDP.

(Source: Slovakia site, UNDP)

[Top] Hard Infrastructure

Slovakia is a land locked country and relies on buses, trains, trolleybuses, tramways and taxis for public transport. Tramways are operational in Bratislava and Kosice. Trolleybuses operate in Bratislava, Presov, Kosice and Banska Bystrica.

 

The railway system is connected to all cities and villages. Buses and railways in Slovakia also transport passengers beyond Slovakian borders to Vienna, London, Budapest, Prague etc.

 

The Danube River Transport also has an international line operating from Vienna to Bratislava and back.

 

MHD – Municipal public transport is the city transport service which operates a fleet of buses, tramways or trolleybuses.

 

(Source: Slovakia site)

 

Ports: Slovakia only has one port, the Port of Bratislava.

 

(Source:world port source)

 

Airports

 

Town

Airport name

Runway length

Bratislava

M.R. Stefanik

10,400 ft

Kosice

Kosice

10,100 ft

Malacky

Malacky

8,000 ft

Nitra

Nitra

3,500 ft

Piestany

Piestany

6,500 ft

Poprad

Tatry

8,500 ft

Presov

Presov

2,700 ft

Prievidza

Prievidza

3,100 ft

Sliac

Sliac

7,600 ft

Trencin

Trencin

6,500 ft

Zilina

Zilina

3,700 ft

 

(Source: Air charter world)

 

Telecommunications networks

 

In 2011, 4.34 million people i.e. 79.2% of the total population used internet services.

                                                             Slovak Republic Internet Penetration

In 2010,  there were 1,098,821 fixed telephone lines in Slovakia. The total number of mobile phone subscriptions was 5,925,012 or 109.12 per 100 people.

 

(Source:internetworldstats.com, ITU, World Bank)

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