Slovakia Economy 1997

Economy - overview Since the establishment of the Slovak Republic on 1 January 1993, Slovakiahas continued the difficult transformation from a centrally controlled economyto a modern market-oriented economy. Macroeconomic performance improved steadilyin 1994-96, but privatization progressed only in fits and starts. Strong exportperformance boosted GDP growth to 4.8% in 1994 after a four-year decline.GDP surged to 7.4% growth in 1995 and should be only slightly less in 1996,the fastest growth in Central and Eastern Europe. Unemployment fell to about12% in 1996 and inflation dropped from 26% in 1993 to 5.5% in 1996, the lowestin the region. Foreign debt of $4.6 billion also is the lowest in the regionand the second lowest per capita. Private activity now makes up roughly two-thirdsof GDP. Positive international financial performance has led Standard &Poor's to raise its rating of the National Bank of Slovakia's foreign currencydebt to just one step below investment grade. Although Slovak economic performancecontinues to be impressive, many warning signs of possible danger ahead havebeen raised. Aggregate demand has surged in the form of increased personaland government consumption. At the same time that the budget deficit is growing,the money supply has been rapidly increasing, which could apply upward pressureon inflation. The trade and current account deficits both are mounting asimports soar and exports sag. Perhaps most troubling, Slovakia continues tohave difficulty attracting foreign investment because of perceived politicalproblems and halting progress on restructuring and privatization. The governmentprojects 6.4% growth in 1997 and 5% in 1998. Continuing economic recoveryin western Europe should boost exports and production, but Slovakia's imagewith foreign creditors and investors could suffer setbacks in 1997 if progresson privatization and restructuring stalls.

GDP purchasing power parity - $42.8 billion (1996 est.)

GDP - real growth rate 7% (1996 est.)

GDP - per capita purchasing power parity - $8,000 (1996 est.)

GDP - composition by sector
agriculture: 5.4%
industry: 39.9%
services: 54.7% (1995 est.)

Inflation rate - consumer price index 5.5% (1996 est.)

Labor force
total: 2.538 million
by occupation : industry 29.3%, agriculture 8.9%, construction 8.0%, transport and communication8.2%, services 45.6% (1994)

Unemployment rate 12% (1996 est.)

Budget
revenues: $5.3 billion
expenditures : $5.6 billion, including capital expenditures of $NA (1995)

Industries metal and metal products; food and beverages; electricity, gas, coke,oil, and nuclear fuel; chemicals and manmade fibers; machinery; paper andprinting; earthenware and ceramics; transport vehicles; textiles; electricaland optical apparatus; rubber products

Industrial production growth rate 2.8% (1996 est.)

Electricity - capacity 7.12 million kW (1994)

Electricity - production 23.6 billion kWh (1994)

Electricity - consumption per capita 4,400 kWh (1995 est.)

Agriculture - products grains, potatoes, sugar beets, hops, fruit; hogs, cattle, poultry; forestproducts

Exports
total value: $8.1 billion (January-November 1996)
commodities : machinery and transport equipment 18.7%; chemicals 13.4%; miscellaneousmanufactured goods 13.1%; raw materials 5.0% (1995)
partners: EU 37.4%, Central Europe Free Trade Agreement 44.3% (Czech Republic35.2%), FSU 7.1% (1995)

Imports
total value : $9.6 billion (f.o.b., January-November 1996)
commodities: machinery and transport equipment 29.0%; fuels 18.0%; intermediate manufacturedgoods 17.6%; miscellaneous manufactured goods 8.0% (1995)
partners: EU 34.7%, Central Europe Free Trade Agreement 32.9% (Czech Republic27.5%), FSU 19.5% (1995)

Debt - external $4.6 billion hard currency indebtedness (1995 est.)

Economic aid NA

Currency 1 koruna (Sk) = 100 halierov

Exchange rates koruny (Sk) per US$1 - 31.50 (January 1997), 30.654 (1996), 29.713 (1995),32.045 (1994), 30.770 (1993), 28.26 (1992), 29.53 (1991); note - values before1993 reflect Czechoslovak exchange rate

Fiscal year calendar year

NOTE: The information regarding Slovakia on this page is re-published from the 1997 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Slovakia Economy 1997 information contained here. All suggestions for corrections of any errors about Slovakia Economy 1997 should be addressed to the CIA.