Slovakia Capital Bratislava Currency Slovak Koruna (SKK) Population 5.43 million EU status Member GDP $78.89 billion Employment 86.9% Government type Parliamentary democracy Religions Roman Catholic 68.9% Protestant 10.8% Greek Catholic 4.1% other or unspecified 3.2% none 13% (2001 census) Languages Slovak (official) 83.9% Hungarian 10.7% Roma 1.8%, Ukrainian 1% other or unspecified 2.6% (2001 census) Exports $32.39 billion f.o.b. (2005 est.) Imports $34.48 billion f.o.b. (2005 est.)

Slovakia

In the past few years, Slovakia has undergone a series of economic reforms, which have helped to improve its business environment, attract foreign investors and boost economic growth. In 2004, when the World Bank released its report called Doing Business, Slovakia was named the top reformer in the world and although its position was worse in 2005, the country still belongs to the fastest reforming members of the European Union. Owing to this reform policy, Slovakia currently represents one of the very best investment environments in Europe. Competitive advantages of Slovakia include in particular:

Strategic location

Slovak Republic is strategically positioned, connecting the former Soviet Union (Ukraine) with the West (Austria). Several principal transport routes, oil and gas pipelines cross the territory of Slovakia. Its capital, Bratislava, is the only capital in Europe adjacent to two other countries; Austria and Hungary. Bratislava has its own international airport, train and bus stations, and a port on the Danube River linking Vienna and Budapest, making it perfectly suited for a logistics and distribution hub covering the four countries (Austria, Czech Republic, Slovakia, and Hungary).

Young and highly skilled workforce

Slovakia is one of the youngest countries in the world. This is true in more ways than one — not only was it established in 1993, but it has proportionately more young people than other Central European countries. Only 15.9% of the Slovak population is aged 60 or more while Bulgaria, Latvia and Hungary have 22.6%, 22% and 20.8% respectively above this age. In addition, the Slovak workforce is highly skilled: 87.6% of the Slovak population receives higher or secondary education. There are 24 universities in Slovakia.

Tax system

Slovak tax reform, which introduced a 19% rate for all personal, corporate and sales taxes has attracted a huge amount of international attention. It is not only the low rate but also, and more importantly, the simplification of the tax system that is very encouraging for companies. With virtually every business activity being taxed at the same rate, firms do not need to spend their energy on optimising their financial statements. A single tax rate thus substantially slashes red tape and improves incentives. This fiscal innovation has helped Slovakia to spur foreign investment and economic growth, while actually leading to a slight increase in tax revenues.

Flexible labour code

In addition to the favourable tax system, Slovakia has also one of the most flexible labour codes in Europe. As of July 2003, the labour code provides for greater flexibility in working time, variable job contracts, and the use of temporary workers. Permissible overtime hours per year have been increased to 400, and the termination of employment relations has become more flexible. For example, the notice period was reduced to two months (and in certain contracts to 15 days) and unsatisfactory work results now provide sufficient grounds for employment termination.

Industrial traditions

Slovakia possesses an industrial heritage with well-developed sectors such as electro-technology, automotive, engineering and wood processing. More recently, Slovakia has also started offering new investment possibilities in information technology and strategic services.

Steady economic growth

Bratislava city

In late July 2005, the World Bank estimated that the Slovak economy would reach a GDP growth rate of 5.1% in 2005, which would remain constant through 2006. By the third quarter of 2005, however, growth was at 6.2%. “It’s clear proof that the government’s economic policy is creating conditions for rapid and sustainable growth. I’m glad that GDP growth is also accompanied by rising employment, meaning that some 20,000 jobs have been created,” said finance minister Ivan Miklos. According to economic analysts quoted in the Slovak Spectator, the growth in GDP is indicative of a long-term trend, rather than a flash in the pan. If current growth patterns continue, Slovakia may be amongst the first of the new members of the EU to adopt the Euro.

 

Facts in brief

Slovakia’s location is in Central Europe, south of Poland Its climate is temperate: cool summers; cold, cloudy, humid winters

Natural resources include brown coal and lignite; small amounts of iron ore, copper and manganese ore; salt; arable land

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

Industries include metal and metal products; food and beverages; electricity, gas, coke, oil, nuclear fuel; chemicals and man-made fibres; machinery; paper and printing; earthenware and ceramics; transport vehicles; textiles; electrical and optical apparatus; rubber products

Diplomatic representation in the US — Chief of mission: Ambassador Rastislav Kacer

Diplomatic representation from the US — Chief of mission: Ambassador Rodolphe “Skip” M Vallee

 

Contact Information

American Chamber of Commerce in the Slovak Republic
Hotel Danube, Rybné
Námestie 1
811 02 Bratislava
Slovak Republic
Tel: +4212 5464 0534
E-mail: director@amcham.sk
Website: www.amcham.sk

Useful websites

bratislava.usembassy.gov	US Embassy in Slovakia
www.sario.sk	Investment and Trade Development Agency
www.fpzo.sk	Slovak Foreign Trade Support Fund
www.oecd.org/slovakia	Organisation for Economic Cooperation and Development
www.nbs.sk	National Bank of Slovakia
www.statistics.sk	Statistical office of the Slovak Republic

 

All pages are copyright of © Roxby Media Ltd - European American Business is a Roxby Media publication.