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The Economy of Slovakia

Slovak Economy

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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 to consolidate its budget and get on track to join the EU in 2004 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 such as labor market liberalization and a 19% flat tax. Foreign investment in the automotive and electronic sectors has been strong. Slovakia's economic growth exceeded expectations in 2001-08 despite the general European slowdown. Unemployment, at an unacceptable 18% in 2003-04, dropped to 7.4% in 2008 but remains the economy's Achilles heel. Despite its 2006 pre-election promises to loosen fiscal policy and reverse the previous DZURINDA government's pro-market reforms, FICO's cabinet has thus far been careful to keep a lid on spending in order to meet euro adoption criteria and has focused on regulating energy and food prices instead. The OECD expects Slovakia's GDP growth to be positive in 2009.

GDP:

GDP - real growth rate: 6.4% (2008 est.) 10.4% (2007 est.) 8.5% (2006 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 2.6% industry: 33.4% services: 64% (2008 est.)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: 3.1% highest 10%: 20.9% (1996)

Distribution of family income - Gini index: 26 (2005)

Inflation rate (consumer prices):

Labor force: 2.254 million (2008 est.)

Labor force - by occupation: agriculture 4%, industry 39%, services 56.9% (30 September 2008)

Unemployment rate: 8.4% (2008)

Budget: revenues: $44.86 billion expenditures: $46.96 billion (2008 est.)

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: 6.5% (2008 est.)

Electricity - production: 26.17 billion kWh (2007 est.)

Electricity - production by source:

Electricity - consumption: 26 billion kWh (2006 est.)

Electricity - exports: 11.85 billion kWh (2007 est.)

Electricity - imports: 12.73 billion kWh (2007 est.)

Oil - production: 12,770 bbl/day (2007 est.)

Oil - consumption: 82,860 bbl/day (2007 est.)

Oil - exports: 72,240 bbl/day (2005)

Oil - imports: 134,100 bbl/day (2005)

Oil - proved reserves: 9 million bbl (1 January 2008 est.)

Natural gas - production: 128 million cu m (2007 est.)

Natural gas - consumption: 6.216 billion cu m (2007 est.)

Natural gas - exports: 180 million cu m (2007 est.)

Natural gas - imports: 6.268 billion cu m (2007 est.)

Natural gas - proved reserves: 14.16 billion cu m (1 January 2008 est.)

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

Exports: $79.12 billion f.o.b. (2008 est.)

Exports - commodities: vehicles 25.9%, machinery and electrical equipment 21.3%, base metals 14.6%, chemicals and minerals 10.1%, plastics 5.4% (2004)

Exports - partners: Germany 21.4%, Czech Republic 12.6%, France 6.7%, Italy 6.4%, Poland 6.2%, Hungary 6%, Austria 5.8%, UK 4.8% (2007)

Imports: $79.76 billion f.o.b. (2008 est.)

Imports - commodities: machinery and transport equipment 41.1%, intermediate manufactured goods 19.3%, fuels 12.3%, chemicals 9.8%, miscellaneous manufactured goods 10.2% (2003)

Imports - partners: Germany 22.1%, Czech Republic 17.3%, Russia 9.2%, Hungary 6.7%, Austria 5.1%, Poland 4.9%, South Korea 4.7% (2007)

Debt - external: $53.04 billion (30 September 2008 est.)

Economic aid - recipient:

Currency:

Currency code:

Exchange rates: Slovak koruny (SKK) per US dollar - 21.05 (2008 est.), 24.919 (2007), 29.611 (2006), 31.018 (2005), 32.257 (2004) note: on 1 January 2009 Slovakia adopted the euro as legal tender

Fiscal year: