Slovakia is a parliamentary democracy. It has a unicameral legislature, the 150-seat national council, whose members are popularly elected by proportional representation for four-year terms. The president is elected by popular vote for a five-year term. Following legislative elections, the leader of the majority party or the majority coalition is usually appointed Prime Minister by the President. The Slovaks and the Czechs agreed to separate peacefully on 1 January 1993. Slovakia joined both NATO and the European Union in the spring of 2004.
Slovakian economy
Slovakia has mastered much of the difficult transition from a centrally planned economy to a modern market economy and is enjoying sustained high economic growth. Unemployment has fallen considerably, although long-term unemployment remains stubbornly high. The incoming government has made achieving a more equal distribution of income a priority insofar as this can be done without damaging long-term growth prospects. Ensuring that the benefits of high economic growth are more widely distributed is vital for making such growth sustainable. Major privatisations are nearly complete, the banking sector is almost completely in foreign hands and foreign investment has picked up. Privatised and consolidated banking industry suggest further dynamic growth, necessary to catch up with the EU15 level of financial services in the industry.
Unemployment peaked at 19.2%(Eurostat regional indicators) in 2001 and though it has fallen to 13.5% as of September 2006, it remains a problem.
GDP per capita ranges from 120% of EU average in Bratislava to only 39% in Eastern Slovakia. While the minimum salary is set at €207 per month, the average salary is above €500 per month.
Agriculture and industry
In 2005, agriculture accounted for 3.4% of GDP (compared to 6.9% in 1993) and employed about 4.7% of the labor force (down from 10.2% in 1994). Over 40% of the land in Slovakia is cultivated. The southern part of Slovakia (bordering with Hungary) is known for its rich farmland growing wheat, rye, corn, potatoes, sugar beets, grains, fruits and sunflowers. Vineyards are concentrated in the Little Carpathians, Tokaj, and other southern regions. The breeding of livestock, including pigs, cattle, sheep, and poultry is also important.
In 2005, industry (including construction) accounted for 28.7% of GDP, compared with 49% in 1990. Nowadays, building on a long-standing tradition and a highly skilled labor force, the main industries with high potential growth are the following sectors: Automotive, electronics, mechanical engineering, chemical engineering, and Information Technology.
Foreign investment
Foreign Direct Investment in Slovakia has increased dramatically. A cheap and skilled labour force, low taxes, a 19% flat tax for corporations and individuals, no dividend taxes, a liberal labour code and a favorable geographical location are Slovakia’s main advantages for foreign investors. In 2006, the FDI level reached €1.75 billion.
Export and import in Slovakia
Over 2006 the foreign trade balance has been passive in the amount of €2.62 billion (€436.8 million higher than in 2005). Goods have been exported to the amount of €33,3 billion. Compared to 2005, total exports have gone up by 24.6 %. Goods were imported to the sum of €35,8 billion; there has been a y-o-y increase of 24.3 %.
Transportation and communication
The railway network in Slovakia is well developed with its 3,662 km of tracks in 2006. In 2002 there were 42,993 km of roadways including 37,533 km of paved roads and 302 km of expressways. In 2007 there were a relatively high number of internet users - over 3 million. Internet hosts registered in 2005, amounted to 135,991
GENERAL DATA
Area: 49,035 sq km
Population: 5.4 million
Capital city: Bratislava
Language: Slovak (official), Hungarian
Ethnic groups: Slovak 86%, Hungarian 9.5%, Roma 1.8%, Czech 0.8%,
Ruthenian 0.4%, Ukrainian 0.2%, German 0.1%, other 1.2%
Land boundaries: Austria, Czech Republic, Hungary, Poland, Ukraine
MACRO DATA
GDP (real growth): 8.3%
GDP (PPP): € 46,717 million
GDP per capita: € 8,651.29
Inflation: 4.3%
Unemployment: 13.4%
Export: € 33.23 billion f.o.b.**
Import: € 36.53 billion f.o.b. **
* 2006est. source: Statistical Office of the Slovak Republic
** est. source: Eurostat
USEFUL DATA
Currency: Slovak koruna (SKK)
Exchange rate
(2006 avg.): € / SKK 35.025
Time zone: GMT +1
Area code: +421
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